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Stock market news live updates: Stock futures fall after earnings, Trump's threat for China tariffs over pandemic – Yahoo Canada Finance

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Stock futures were lower Friday morning after the latest batch of corporate earnings results suggested a grim outlook for the current quarter and President Donald Trump threatened retaliation on China over the coronavirus pandemic.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Earnings results from some of the most heavily weighted companies in the major U.S. stock indices came in mixed after market close Thursday. Amazon (AMZN) posted first-quarter sales that jumped 26% over last year, but warned that $4 billion in expected coronavirus-related costs could drag operating income negative to the tune of $1.5 billion.” data-reactid=”17″>Earnings results from some of the most heavily weighted companies in the major U.S. stock indices came in mixed after market close Thursday. Amazon (AMZN) posted first-quarter sales that jumped 26% over last year, but warned that $4 billion in expected coronavirus-related costs could drag operating income negative to the tune of $1.5 billion.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Meanwhile, Apple (AAPL) reported quarterly revenue that was virtually flat over last year, and declined to offer an outlook due to uncertainty over the pandemic.” data-reactid=”18″>Meanwhile, Apple (AAPL) reported quarterly revenue that was virtually flat over last year, and declined to offer an outlook due to uncertainty over the pandemic.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Separately, during a briefing Thursday, President Donald Trump said his phase one trade deal with China was now eclipsed by the more imminent reality of the coronavirus pandemic, which originated in the country. Trump has criticized China over its handling of the outbreak and claimed he had seen evidence that the virus was started in a Wuhan lab, though other U.S. officials have downplayed that claim.” data-reactid=”19″>Separately, during a briefing Thursday, President Donald Trump said his phase one trade deal with China was now eclipsed by the more imminent reality of the coronavirus pandemic, which originated in the country. Trump has criticized China over its handling of the outbreak and claimed he had seen evidence that the virus was started in a Wuhan lab, though other U.S. officials have downplayed that claim.

Click here for complete coverage of Warren Buffett and Berkshire Hathaway.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Despite ending the regular session lower on Thursday, the S&amp;P 500 closed out April on a high note and posted its best monthly gain since 1987. The blue-chip index climbed a total of 12.68% for the month, but was still off 14% from its record high on February 19, and down nearly 10% year to date.” data-reactid=”33″>Despite ending the regular session lower on Thursday, the S&P 500 closed out April on a high note and posted its best monthly gain since 1987. The blue-chip index climbed a total of 12.68% for the month, but was still off 14% from its record high on February 19, and down nearly 10% year to date.

“We forecast further gains in most risky assets between now and the end of next year. This reflects our expectation of a rebound in economic activity starting in the second half of 2020, alongside the continuation of massive monetary and fiscal policy support,” John Higgins, chief markets economist for Capital Economics, wrote in a note Thursday.

“Admittedly, risky assets have already recovered quite a lot of the ground that they lost after the outbreak of coronavirus. And two key downside risks remain,” he added.

“First, success in containing the virus could be reversed as economies reopen. Second, the consensus for policy support might break down,” he said. “But assuming these risks do not materialize, we anticipate that the rally will continue.”

Still, equities are entering what has historically been a tougher six-month period in terms of comparable returns.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="During that time frame, the S&amp;P 500 have averaged returns of just 1.5% during the May through October period since 1950, according to LPL Research data, and ended the period higher just 64.3% of the time. In more recent history, however, stocks produced positive gains in seven of the past eight six-month periods between May and October, and as much as 10% during the similar period in 2013.” data-reactid=”38″>During that time frame, the S&P 500 have averaged returns of just 1.5% during the May through October period since 1950, according to LPL Research data, and ended the period higher just 64.3% of the time. In more recent history, however, stocks produced positive gains in seven of the past eight six-month periods between May and October, and as much as 10% during the similar period in 2013.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The recent stock rally comes despite mounting evidence of the damage the coronavirus pandemic and social distancing measures have inflicted on the domestic economy. A government report Thursday showed another 3.8 million Americans filed for new unemployment claims last week, bringing the total over the past six weeks to more than 30 million.” data-reactid=”39″>The recent stock rally comes despite mounting evidence of the damage the coronavirus pandemic and social distancing measures have inflicted on the domestic economy. A government report Thursday showed another 3.8 million Americans filed for new unemployment claims last week, bringing the total over the past six weeks to more than 30 million.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="But the outbreak at least showed further signs of easing on Thursday, fueling hopes that businesses could slowly begin to open across more jurisdictions and lead to a recovery in economic activity. U.S. coronavirus cases rose just 1.2% on Thursday for the slowest pace of increase of the month, according to Bloomberg and Johns Hopkins compiled data. Overall cases have topped 1.05 million in the U.S. and 3.2 million globally.” data-reactid=”40″>But the outbreak at least showed further signs of easing on Thursday, fueling hopes that businesses could slowly begin to open across more jurisdictions and lead to a recovery in economic activity. U.S. coronavirus cases rose just 1.2% on Thursday for the slowest pace of increase of the month, according to Bloomberg and Johns Hopkins compiled data. Overall cases have topped 1.05 million in the U.S. and 3.2 million globally.

7:23 a.m. ET Friday: Stock futures fall

Here were the main moves in markets ahead of the opening bell, as of 7:24 a.m. ET:

  • S&P 500 futures (ES=F): down 59.5 points, or 2.05%, to 2,843.00

  • Dow futures (YM=F): down 461.00 points, or 1.90%, to 23,769.00

  • Nasdaq futures (NQ=F): down 229.00 points, or 2.55%, to 8,759.5

  • Crude (CL=F): -$0.03 (-0.16%) to $18.81 a barrel

  • Gold (GC=F): -$7.00 (-0.41%) to $1,687.20 per ounce

  • 10-year Treasury (^TNX): -1.3 bps to yield 0.612%

6:02 p.m. ET Thursday: Stock futures open lower

Stock futures pointed to a lower open on Friday, as investors braced for more earnings and data that are all but certain to show how badly the coronavirus has stifled global growth.

Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:02 p.m. ET:

  • S&P 500 futures (ES=F): down 38 points, or 1.31%, to 2,864.5

  • Dow futures (YM=F): down 260 points, or 1.07%, to 23,970.00

  • Nasdaq futures (NQ=F): down 157.25 points, or 1.75%, to 8,831.25

Wall Street and New York Stock Exchange in Downtown Manhattan, New York City, USAWall Street and New York Stock Exchange in Downtown Manhattan, New York City, USA
Wall Street and New York Stock Exchange in Downtown Manhattan, New York City, USA

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Follow Yahoo Finance on&nbsp;Twitter,&nbsp;Facebook,&nbsp;Instagram,&nbsp;Flipboard,&nbsp;LinkedIn, and&nbsp;reddit.” data-reactid=”75″>Follow Yahoo Finance on TwitterFacebookInstagramFlipboardLinkedIn, and reddit.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Find live stock market quotes and the latest business and finance news” data-reactid=”76″>Find live stock market quotes and the latest business and finance news

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For tutorials and information on investing and trading stocks, check out Cashay” data-reactid=”77″>For tutorials and information on investing and trading stocks, check out Cashay

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HSBC warns it could face reprisals in China if UK bans Huawei equipment: Telegraph – Reuters

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FILE PHOTO: HSBC’s building in Canary Wharf is seen behind a City of London sign outside Billingsgate Market in London, Britain, August 8, 2018. REUTERS/Hannah McKay

(Reuters) – HSBC Holdings Plc (HSBA.L) Chairman Mark Tucker has warned Britain against a ban on networking equipment made by Huawei Technologies Co Ltd, claiming the bank could face reprisals in China, the Telegraph reported on Saturday.

Tucker made the claim in private representations to British Prime Minster Boris Johnson’s advisers, the newspaper reported here citing industry and political sources.

Britain designated Huawei a “high-risk vendor” in January, capping its 5G involvement at 35% and excluding it from the data-heavy core of the network. It is looking at the possibility of phasing Huawei out of its 5G network completely by 2023, according to officials.

Reporting by Ismail Shakil in Bengaluru; Editing by Dan Grebler

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OPEC+ Agrees On Extending Record Output Cuts – OilPrice.com

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OPEC+ Agrees On Extending Record Output Cuts | OilPrice.com

Tom Kool

Tom majored in International Business at Amsterdam’s Higher School of Economics, he is Oilprice.com’s Head of Operations

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    OPEC and its partners concluded their meeting on Saturday afternoon, announcing that it would extend its current production cut deal.

    Algeria’s Energy Minister Mohamed Arkab, OPEC’s current President summed up the group’s sentiment by saying that “Despite the progress achieved to date, we cannot afford to rest on our laurels,”.

    The last couple of days, the cartel’s de-facto leader Saudi Arabia negotiated with other OPEC members and some non-OPEC countries including Russia, Kazakhstan and Azerbaijan to extend the current 9.7 million bpd output cuts for at least another month.

    Most countries partaking in the record production cuts were willing to continue the current deal, but poor compliance from countries like Iraq, Nigeria and Kazakhstan has caused discontent among other OPEC members, some of which have even made deeper cuts than agreed on in April.

    During the virtual meeting on Saturday, the cartel agreed that the countries that were unable to reach full conformity in May and June will have to compensate for this in July, August and September.

    Oil prices effectively doubled during the month of May as global demand started to recover and record output cuts and worldwide well shut-ins decreased the monster glut.

    While the OPEC+ deal extension undoubtedly will have a bullish effect on markets, prices aren’t likely to rip much higher on Monday as the OPEC+ news has largely been priced in already.

    For oil prices to make a full recovery, global demand will have to recover and crude inventories have to be drawn down, both of which will likely take up to two years. Pioneer’s Scott Sheffield said that the quick rebound of demand to around 94-95 mb/d following the “reopening” of so many economies will give way to stagnation, saying that demand won’t reach pre-pandemic levels until 2022 or even 2023.

    For now, the next bullish catalyst for oil could come from Saudi Aramco, which could set the trend for higher oil prices in June as it is expected to release its OSPs (official selling prices) on Monday. Aramco’s OSPs are often a leading indicator for Iraqi, Iranian and Kuwaiti crude prices, and last month, Brent futures rallied after Riyadh hiked its prices for crude to Asia.

    By Tom Kool of Oilprice.com

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      OPEC, Russia to extend record oil cuts to end of July amid pandemic – CBC.ca

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      OPEC, Russia and allies agreed on Saturday to extend record oil production cuts until the end of July, prolonging a deal that has helped crude prices double in the past two months by withdrawing almost 10 per cent of global supplies from the market.

      The group, known as OPEC+, also demanded countries such as Nigeria and Iraq, which exceeded production quotas in May and June, compensate with extra cuts in July to September.

      OPEC+ had initially agreed in April that it would cut supply by 9.7 million barrels per day (bpd) during May-June to prop up prices that collapsed due to the coronavirus crisis. Those cuts were due to taper to 7.7 million bpd from July to December.

      “Demand is returning as big oil-consuming economies emerge from pandemic lockdown. But we are not out of the woods yet and challenges ahead remain,” Saudi Energy Minister Prince Abdulaziz bin Salman told the video conference of OPEC+ ministers.

      Benchmark Brent crude climbed to a three-month high on Friday above $42 a barrel, after diving below $20 in April. Prices still remain a third lower than at the end of 2019.

      WATCH | Canadian oil producers don’t see relief after OPEC deal to cut output:

      Richard Masson, chair of World Petroleum Council-Canada, says Ottawa needs to move soon if it plans to help producers, as companies face ‘really tough decisions.’ 0:55

      “Prices can be expected to be strong from Monday, keeping their $40 US plus levels,” said Bjornar Tonhaugen from Rystad Energy.

      Saudi Arabia, OPEC’s de facto leader, and Russia have to perform a balancing act of pushing up oil prices to meet their budget needs while not driving them much above $50 US a barrel to avoid encouraging a resurgence of rival U.S. shale production.

      1 billion barrels of excess oil inventories

      The April deal was agreed under pressure from U.S. President Donald Trump, who wants to avoid U.S. oil industry bankruptcies.

      Trump, who previously threatened to pull U.S. troops out of Saudi Arabia if Riyadh did not act, spoke to the Russian and Saudi leaders before Saturday’s talks, saying he was happy with the price recovery.

      While oil prices have partially recovered, they are still well below the costs of most U.S. shale producers. Shutdowns, layoffs and cost cutting continue across the United States.

      As global lockdown restrictions to halt the spread of the coronavirus are being eased, oil demand is expected to exceed supply sometime in July but OPEC has yet to clear 1 billion barrels of excess oil inventories accumulated since March.

      Tonhaugen said Saturday’s decisions would help OPEC reduce inventories at a rate of 3 million to 4 million bpd over July-August.

      Workers are seen in Aramco’s oil separator at processing facility in Abqaiq, Saudi Arabia, in September 2019. (Amr Nabil/The Associated Press)

      “The quicker stocks fall, the higher prices will get. And that is crucial for many OPEC+ economies, whose fiscal budgets count on oil sales,” he said.

      Nigeria’s petroleum ministry said Abuja backed the idea of compensating for its excessive output in May and June.

      Iraq, with one of the worst compliance rates in May, agreed to extra cuts although it was not clear how Baghdad would reach agreement with oil majors on curbing Iraqi output.

      Workers are seen in the Nihran Bin Omar field north of Basra, Iraq, in January 2017. (Nabil al-Jurani/The Associated Press)

      Iraq produced 520,000 bpd above its quota in May, while overproduction by Nigeria was 120,000 bpd, Angola’s was 130,000 bpd, Kazakhstan’s was 180,000 bpd and Russia’s was 100,000 bpd, according to OPEC+ data.

      OPEC+’s joint ministerial monitoring committee, known as the JMMC, would now meet every month until December to review the market, compliance and recommend levels of cuts.

      The next JMMC meeting is scheduled for June 18, while the next full OPEC and OPEC+ meeting will take place on Nov. 30-Dec. 1.

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