Wed, April 24, 2024 at 9:35 AM EDT
Business
Stock market news live: Stock futures extend losses after Dow's worst quarter since 1987 – Yahoo Canada Finance
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Stocks futures fell Wednesday morning, signaling more selling after the Dow posted its worst quarterly drop since 1987.” data-reactid=”16″>Stocks futures fell Wednesday morning, signaling more selling after the Dow posted its worst quarterly drop since 1987.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In the U.S., officials’ outlooks around the coronavirus outbreak have grown increasingly somber, as the case count topped 189,000 – comprising around one-fifth of known global cases – and the death toll rose about 3,000. During a White House briefing Tuesday evening, President Donald Trump said Americans should prepare for what is going to be “a very painful two weeks” as the pandemic paces toward a peak in the U.S. Based on new White House projections, the death toll could reach up to 240,000 domestically.” data-reactid=”17″>In the U.S., officials’ outlooks around the coronavirus outbreak have grown increasingly somber, as the case count topped 189,000 – comprising around one-fifth of known global cases – and the death toll rose about 3,000. During a White House briefing Tuesday evening, President Donald Trump said Americans should prepare for what is going to be “a very painful two weeks” as the pandemic paces toward a peak in the U.S. Based on new White House projections, the death toll could reach up to 240,000 domestically.
Each of the three major indices suffered stunning declines during the first three months of this year as the coronavirus outbreak escalated globally, triggering widespread stay-at-home orders, effectively shutting down travel-related industries and grinding a myriad other business operations to a halt.
As of market close Tuesday, the S&P 500 was down 20% for the year to date, the Dow fell 23.2% and the Nasdaq dropped 14.18%, with the latter’s declines cushioned relative to the other indices as investors bought into big tech names. The Information Technology sector was the leader in the S&P 500 for the first quarter, followed by the Health-Care sector.
The Energy sector, meanwhile, was the S&P 500’s biggest laggard, dropping 51% for the year to date. This coincided with a precipitous decline in crude oil prices, with domestic West Texas Intermediate posting its single largest quarterly and monthly declines on record, settling more than 66% lower for the year to date on Tuesday. Saudi Arabia has vowed to hike its oil output to a record in April, further applying downward pressure to prices on the supply side while the coronavirus simultaneously drags down energy demand.
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8:15 a.m. ET: Private payrolls declined by 27,000 in March as small businesses shed jobs, according to ADP/Moody’s report
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Private payrolls fell less than expected in March, according to the ADP/Moody’s monthly report capturing the early impacts of the coronavirus outbreak on the domestic labor market.” data-reactid=”23″>Private payrolls fell less than expected in March, according to the ADP/Moody’s monthly report capturing the early impacts of the coronavirus outbreak on the domestic labor market.
Headline private payrolls sank by 27,000, beating expectations for a decline of 150,000, according to Bloomberg-compiled consensus data. in February, private payrolls rose by 179,000, downwardly revised from the 183,000 previously reported.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The ADP/Moody’s survey collects data through the 12th of the month, and so does not fully capture the most recent impacts to the job market caused by the coronavirus outbreak and related social distancing measures.” data-reactid=”25″>The ADP/Moody’s survey collects data through the 12th of the month, and so does not fully capture the most recent impacts to the job market caused by the coronavirus outbreak and related social distancing measures.
By company size, small businesses bore the brunt of declines in March, with companies of up to 49 employees losing 90,000 payrolls. Medium and large business each posted net gains in payrolls.
Both the goods-producing and services sectors saw net job losses in March, with the services sector leading declines. Trade, transportation and utilities industries lost 37,000 jobs, and administrative services lost 12,000 payrolls. In the goods-producing sector, construction lost 16,000 jobs.
View photos
Small businesses lost 90,000 jobs in March, according to ADP/Moody’s.
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8:00 a.m. ET: Home Depot announces early store closures, expanded COVID-19 safety measures
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Home Depot (HD) became one of the latest major retailers to announce operational changes amid the coronavirus outbreak. The company said Wednesday morning it will shrink its store hours and close at 6 p.m. daily to give staff “additional time to perform cleaning and restock shelves.” Store associates will take their temperatures before work, it added.” data-reactid=”50″>The Home Depot (HD) became one of the latest major retailers to announce operational changes amid the coronavirus outbreak. The company said Wednesday morning it will shrink its store hours and close at 6 p.m. daily to give staff “additional time to perform cleaning and restock shelves.” Store associates will take their temperatures before work, it added.
The company also said it is limiting the number of customers inside at any given time, and eliminating spring promotions to avoid incentivizing more shoppers into retail locations. The company froze prices nationwide on products in high demand due to the coronavirus outbreak, and is prioritizing fulfillment to health-care centers and personnel.
Home Depot also said it is expanding its paid time off policy for workers to accommodate disruptions due to the coronavirus, and is implementing a temporary bonus program for workers in stores and distribution centers.
Shares of Home Depot fell 3.8% in early trading to $179.55 each.
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7:09 a.m. ET Wednesday: Stock futures drop, Dow sheds 600+ points
Here were the main moves in markets, as of 7:09 a.m. ET:
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S&P 500 futures (ES=F): down 3.19%, or -82 points to 2,487.75
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Dow futures (YM=F): down 3.14% or -682 points to 21,069.00
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Nasdaq futures (NQ=F): down 2.74% or -213 points to 7,573.25
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Crude (CL=F): +$0.49 (+0.49%) to $20.58 a barrel
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Gold (GC=F): +$10.00 (+0.63%) to $1,606.60 per ounce
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10-year Treasury (^TNX): -8.9 bps to yield 0.61%
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7:00 a.m. ET Wednesday: Mortgage applications jumped last week as refinances surge, but new purchases extended declines
Mortgage applications jumped by a seasonally adjusted 15.3% over the prior week for the week ending March 27, the Mortgage Bankers Association (MBA) said Wednesday. This came following a 29.4% weekly drop for the week ending March 20.
The MBA’s index tracking refinances surged 26% from the previous week and was more than double that of the comparable period last year. Purchases, however, decreased 10% compared with the previous week, and 24% compared to the same week last year.
“Mortgage rates and applications continue to experience significant volatility from the economic and financial market uncertainty caused by the coronavirus crisis. After two weeks of sizable increases, mortgage rates dropped back to the lowest level in MBA’s survey, which in turn led to a 25 percent jump in refinance applications,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement. “The bleaker economic outlook, along with the first wave of realized job losses reported in last week’s unemployment claims numbers, likely caused potential homebuyers to pull back.”
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6:01 p.m. ET Tuesday: Stock futures open little changed
Here were the main moves in markets, as of 6:01 p.m. ET:
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S&P 500 futures (ES=F): down 0.47%, or -12 points to 2,557.75
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Dow futures (YM=F): down 0.45% or -98 points to 21,653.00
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Nasdaq futures (NQ=F): down 0.32% or -25 points to 7,761.25
View photos
The empty Trading Floor of the NYSE after the market has closed.
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Oil companies planning to ship crude on the expanded Trans Mountain pipeline in Canada are concerned that the project may not begin full service on May 1 but they would be nevertheless obligated to pay tolls from that date.
In a letter to the Canada Energy Regulator (CER), Suncor Energy and other shippers including BP and Marathon Petroleum have expressed doubts that Trans Mountain will start full service on May 1, as previously communicated, Reuters reports.
Trans Mountain Corporation, the government-owned entity that completed the pipeline construction, told Reuters in an email that line fill on the expanded pipeline would be completed in early May.
After a series of delays, cost overruns, and legal challenges, the expanded Trans Mountain oil pipeline will open for business on May 1, the company said early this month.
“The Commencement Date for commercial operation of the expanded system will be May 1, 2024. Trans Mountain anticipates providing service for all contracted volumes in the month of May,” Trans Mountain Corporation said in early April.
The expanded pipeline will triple the capacity of the original pipeline to 890,000 barrels per day (bpd) from 300,000 bpd to carry crude from Alberta’s oil sands to British Columbia on the Pacific Coast.
The Federal Government of Canada bought the Trans Mountain Pipeline Expansion (TMX) from Kinder Morgan back in 2018, together with related pipeline and terminal assets. That cost the federal government $3.3 billion (C$4.5 billion) at the time. Since then, the costs for the expansion of the pipeline have quadrupled to nearly $23 billion (C$30.9 billion).
The expansion project has faced continuous delays over the years. In one of the latest roadblocks in December, the Canadian regulator denied a variance request from the project developer to move a small section of the pipeline due to challenging drilling conditions.
The company asked the regulator to reconsider its decision, and received on January 12 a conditional approval, avoiding what could have been another two-year delay to start-up.
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Tesla profits slump by more than a half
Tesla has announced its profits fell sharply in the first three months of the year to $1.13bn (£910m), compared with $2.51bn in 2023.
It caps a difficult period for the electric vehicle (EV) maker, which – faced with falling sales – has announced thousands of job cuts.
Boss Elon Musk remains bullish about its prospects, telling investors the launch of new models would be brought forward.
Its share price has risen but analysts say it continues to face significant challenges, including from lower-cost rivals.
The company has suffered from falling demand and competition from cheaper Chinese imports which has led its stock price to collapse by 43% over 2024.
Figures for the first quarter of 2024 revealed revenues of $21.3bn, down on analysts’ predictions of just over $22bn.
But the decision by Tesla to bring forward the launch of new models from the second half of 2025 boosted its shares by nearly 12.5% in after-hours trading.
It did not reveal pricing details for the new vehicles.
However Mr Musk made clear he also grander ambitions, touting Tesla’s AI credentials and plans for self-driving vehicles – even going as far as to say considering it to be just a car company was the “wrong framework.”
“If somebody doesn’t believe Tesla is going to solve autonomy I think they should not be an investor,” he said.
Such sentiments have been questioned by analysts though, with Deutsche Bank saying driverless cars face “technological, regulatory and operational challenges.”
Some investors have called for the company to instead focus on releasing a lower price, mass-market EV.
However, Tesla has already been on a charm offensive, trying to win over new customers by dropping its prices in a series of markets in the face of falling sales.
It also said its situation was not unique.
“Global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs,” it said.
Despite plans to bring forward new models originally planned for next year the firm is cutting its workforce.
Tesla said it would lose 3,332 jobs in California and 2,688 positions in Texas, starting mid-June.
The cuts in Texas represent 12% of Tesla’s total workforce of almost 23,000 in the area where its gigafactory and headquarters are located.
However, Mr Musk sought to downplay the move.
“Tesla has now created over 30,000 manufacturing jobs in California!” he said in a post on his social media platform X, formerly Twitter, on Tuesday.
Another 285 jobs will be lost in New York.
Tesla’s total workforce stood at more than 140,000 late last year, up from around 100,000 at the end of 2021, according to the company’s filings with US regulators.
Musk’s salary
The car firm is also facing other issues, with a struggle over Mr Musk’s compensation still raging on.
On Wednesday, Tesla asked shareholders to vote for a proposal to accept Mr Musk’s compensation package – once valued at $56bn – which had been rejected by a Delaware judge.
The judge found Tesla’s directors had breached their fiduciary duty to the firm by awarding Mr Musk the pay-out.
Due to the fall in Tesla’s stock value, the compensation package is now estimated to be around $10bn less – but still greater than the GDP of many countries.
In addition, Tesla wants its shareholders to agree to the firm being moved from Delaware to Texas – which Mr Musk called for after the judge rejected his payday.
Business
Stock market today: Nasdaq futures pop, Tesla surges after earnings with more heavyweights on deck
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Tech stocks rose on Wednesday, outstripping the broader market as investors welcomed Tesla’s (TSLA) cheaper car pledge and waited for the next rush of corporate earnings.
The Nasdaq Composite (^IXIC) rose roughly 0.6%, coming off a sharp closing gain. The S&P 500 (^GSPC) was up 0.2%, continuing a rebound from its longest losing streak of 2024, while the Dow Jones Industrial Average (^DJI) fell 0.1%.
Tesla shares jumped nearly 12% after the EV maker’s vow to speed up the launch of more affordable models eclipsed its quarterly earnings and revenue miss. That cheered up investors worried about growth amid a strategy shift to robotaxis and the planned cancellation of a cheaper model.
The results from the first “Magnificent Seven” to report have intensified the already high hopes for Big Tech earnings, that the megacaps can revive the rally in stocks they powered. The spotlight is now on Meta’s (META) report due after the market close, as the Facebook owner’s shares rose after the Senate voted for a potential ban on rival TikTok. Microsoft (MSFT) and Alphabet (GOOG) next up on Thursday.
Meanwhile, Boeing (BA) reported better than expected first quarter results before the opening bell with a loss per share of $1.13, narrower than the $1.72 estimated by Wall Street. Shares rose about 2% in morning trade.
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