<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="U.S. stock futures tumbled by more than 4% Wednesday evening, indicating that Wall Street was poised to extend its grim sell-off, after President Donald Trump announced new plans intended to contain the human toll and economic impact of the worsening coronavirus outbreak that has whipsawed global markets.” data-reactid=”16″>U.S. stock futures tumbled by more than 4% Wednesday evening, indicating that Wall Street was poised to extend its grim sell-off, after President Donald Trump announced new plans intended to contain the human toll and economic impact of the worsening coronavirus outbreak that has whipsawed global markets.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In a televised address, Trump said he was planning to suspend travel from certain areas of Europe to the U.S. for the next 30 days. He also announced plans for $50 billion of low interest loans to affected businesses and suggested a delay in the April 15 tax filing deadline.” data-reactid=”17″>In a televised address, Trump said he was planning to suspend travel from certain areas of Europe to the U.S. for the next 30 days. He also announced plans for $50 billion of low interest loans to affected businesses and suggested a delay in the April 15 tax filing deadline.
Following the address, contracts on the S&P 500, Nasdaq 100 and Dow sank to their limit-down levels to trigger so-called circuit breakers to prevent further losses.
“President Trump’s address to the nation was symptomatic of the lack of policy coordination in the face of a global coronavirus pandemic,” Oxford Economics’ Gregory Daco said. “Markets reacted negatively to what was perceived as a solemn but confused speech that placed blame on other nations, omitted to focus on immediate actions to relieve the most affected individuals, and lacked in concrete fiscal and health measures to address the economic and financial impact of the virus.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="U.S. equity futures tumbled and sent the S&P 500 (ES=F), Dow (YM=F) and Nasdaq (NQ=F) deeper into the red. As of 2:45 a.m. ET on Thursday, Dow futures were down around 1,000 points or 4.3% — suggesting major benchmarks were in for yet another day of bloodletting at Thursday’s opening bell.” data-reactid=”20″>U.S. equity futures tumbled and sent the S&P 500 (ES=F), Dow (YM=F) and Nasdaq (NQ=F) deeper into the red. As of 2:45 a.m. ET on Thursday, Dow futures were down around 1,000 points or 4.3% — suggesting major benchmarks were in for yet another day of bloodletting at Thursday’s opening bell.
The selloff suggests investors were hoping for much more.
“2 hours [before the speech], with Australia launching financial crisis level plans, I had brief visions of country by country launching what looked like coordinated fiscal stimulus,” Academy Securities’ Peter Tchir said. “I’m disappointed with what we got…”
Some analysts were a bit more alarmed.
“The U.S. limiting entry to foreign nationals from Europe has the potential to cause another world depression again even if it is for reasons that seek to stop the spread of the coronavirus,” MUFG economist Chris Rupkey said. “Business activity is going to hit the brakes around the world and stock markets around the world are in freefall as the spread of this deadly pandemic virus has the potential to slow the global economy to a crawl.”
Trader Michael Gallucci works at his post on the floor of the New York Stock Exchange, Wednesday, March 11, 2020. (AP Photo/Richard Drew)
Other proposals under consideration by the Trump administration included a payroll tax cut and expanded worker protections, to help counteract any economic fall-out from the ongoing coronavirus outbreak.
While some of these ideas have been met with resistance in the House, Eurasia Group’s Todd Marino wrote late Wednesday that “the snowballing impact of the coronavirus in coming weeks, combined with a White House push, will likely result in bipartisan alignment—rare in an election year—on [a] big-bang stimulus.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The World Health Organization officially designated the coronavirus outbreak a pandemic on Wednesday, as the virus spread across more than 100 countries and infected well over 100,000 individuals. The Dow extended its losses during the U.S. trading session on Tuesday following the announcement.” data-reactid=”38″>The World Health Organization officially designated the coronavirus outbreak a pandemic on Wednesday, as the virus spread across more than 100 countries and infected well over 100,000 individuals. The Dow extended its losses during the U.S. trading session on Tuesday following the announcement.
9:09 a.m. ET: Apache slashes dividend, capital spending as oil prices slide
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Apache Corp. (APA) said Thursday it will cut its dividend and capital spending plans for the year in the wake of a precipitous decline in crude oil prices.” data-reactid=”42″>Apache Corp. (APA) said Thursday it will cut its dividend and capital spending plans for the year in the wake of a precipitous decline in crude oil prices.
Shares of Apache, which had been down 60% from Friday’s through Wednesday’s close, tumbled another 15% in early trading following the announcement.
Apache’s dividend reduction brought the payout down by 90% to 2.5 cents per share each quarter, from 25 cents previously. The energy company also said it would reduce its 2020 capital investment plan to a range of $1.0 billion to $1.2 billion, down from a previous range of between $1.6 billion and $1.9 billion. Apache’s number of drill rigs operated in the Permian Basin will be cut to zero.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The move mirrors that of other U.S. shale producers earlier this week, which have been frantically updating their investment and dividend payout plans this week to cope with the stunning plunge in oil prices earlier this week. Peer energy giant Occidental Petroleum Corp. (OXY) on Tuesday had slashed its own dividend by nearly 90%, and cut its capital spending plans by as much as 35% for the year.” data-reactid=”49″>The move mirrors that of other U.S. shale producers earlier this week, which have been frantically updating their investment and dividend payout plans this week to cope with the stunning plunge in oil prices earlier this week. Peer energy giant Occidental Petroleum Corp. (OXY) on Tuesday had slashed its own dividend by nearly 90%, and cut its capital spending plans by as much as 35% for the year.
“We are significantly reducing our planned rig count and well completions for the remainder of the year, and our capital spending plan will remain flexible based on market conditions,” Apache CEO John Christmann said in a statement. “We are also further reducing operating and overhead costs as we continue to implement our corporate redesign program, which began in the fall of 2019. These decisive actions will benefit Apache as we navigate these challenging market conditions.”
—
9:03 a.m. ET: Carnival halts Princess Cruises for 60 days amid coronavirus
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Princess Cruises, owned by parent company Carnival (CCL), will temporarily pause global operations of its 18 cruise ships for 60 days, or from March 12 to May 10, the company said in a statement Thursday.” data-reactid=”53″>Princess Cruises, owned by parent company Carnival (CCL), will temporarily pause global operations of its 18 cruise ships for 60 days, or from March 12 to May 10, the company said in a statement Thursday.
Shares of Carnival were halted in early trading ahead of the announcement. The stock tumbled 23% after shares reopened for trading, putting it on pace for its lowest price since 2009.
“Princess Cruises is a global vacation company that serves more than 50,000 guests daily from 70 countries as part of our diverse business, and it is widely known that we have been managing the implications of COVID-19 on two continents,” Jan Swartz, president of Princess Cruises, said in a statement.
“By taking this bold action of voluntarily pausing the operations of our ships, it is our intention to reassure our loyal guests, team members and global stakeholders of our commitment to the health, safety and well-being of all who sail with us, as well as those who do business with us, and the countries and communities we visit around the world,” he added.
—
7:37 a.m. ET: Stock futures trigger circuit-breakers as investors brace for another volatile session
Futures for the S&P 500, Dow and Nasdaq each traded more than 4% lower Thursday morning, after briefly hitting their limit-down levels late Wednesday for a second time in this week.
At the lows of the overnight session, contracts for each of the three major indices dropped some 5%, plunging enough to trigger circuit breakers to prevent further losses. The limit-down level is established each day by the Chicago Mercantile Exchange. The indices’ futures can still trade at or above the limit-down level.
Here were the main moves in markets as of 7:37 a.m. ET:
S&P 500 futures (ES=F): 2,606.25, down 134 points or -4.89%
Dow futures (YM=F): 22,344.00, down 1,231.00 points or -5.22%
Nasdaq futures (NQ=F): 7,608.5, down 395 points or -4.94%
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
