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The Dow crashes more than 1,800 points out of nowhere — here's one reason why – Yahoo News Canada

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Think more broadly, investors…it may save you from losing a ton of money right now.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Federal Reserve Chair Jerome Powell — fresh off a press conference Wednesday where he warned about long-term joblessness due to the COVID-19 pandemic — was the easy scapegoat for the surprising market meltdown on Thursday. President Trump of course took full aim at Powell via his latest Twitter pipe-bomb.” data-reactid=”17″>Federal Reserve Chair Jerome Powell — fresh off a press conference Wednesday where he warned about long-term joblessness due to the COVID-19 pandemic — was the easy scapegoat for the surprising market meltdown on Thursday. President Trump of course took full aim at Powell via his latest Twitter pipe-bomb.

But some blame should get cast upon state governors for perhaps moving too quickly to reopen various businesses without a vaccine for the coronavirus. In turn, that has likely helped fuel a rise in coronavirus infections in key states such as Texas, California and Arizona. Texas alone reported 2,504 new coronavirus infections on Wednesday, the highest one-day total since the pandemic began.

“There is a new wave coming in parts of the country. It’s small and it’s distant so far, but it’s coming,” John Hopkins Center for Health Security Eric Toner told Bloomberg News.

The U.S. has seen more than 2 million confirmed coronavirus infections. About 115,000 people have died from the disease.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Fears of a second wave of COVID-19 have subsequently erupted this week in the markets. The Dow Jones Industrial Average tanked more than 1,800 points on Thursday. Hot stocks that have fueled the rally from the lows such as Royal Caribbean and Bank of America were crushed. Even inherently less risky stocks like Disney, IBM and Pfizer were drilled on the session.” data-reactid=”21″>Fears of a second wave of COVID-19 have subsequently erupted this week in the markets. The Dow Jones Industrial Average tanked more than 1,800 points on Thursday. Hot stocks that have fueled the rally from the lows such as Royal Caribbean and Bank of America were crushed. Even inherently less risky stocks like Disney, IBM and Pfizer were drilled on the session.

Markets were beginning to weaken before Thursday’s rout, however.

NEW YORK, NEW YORK – JUNE 01: A view of New York Stock Exchange on Wall Street in lower Manhattan on June 01, 2020 in New York City. (Photo by Roy Rochlin/Getty Images)

Wall Street pros have also voiced concern on how the protests across the country would make a second wave worse than expected. Remember, the market’s 40%-plus rally from the March 23 lows has been predicated on a swift, V-shaped economic recovery into year-end. In other words, a rosy economic scenario underpinned by no second wave. And if there were to be a second wave, it would be concentrated to a few states and not broad-based.

That overly optimistic thesis is now being rethought by investors.

“Market friendly Fed policy cannot, however, offset a severe COVID second wave. Another broad shutdown of the economy is unlikely, but data show that people changed their behavior well below stay-at-home orders were official,” wrote EvercoreISI strategist Dennis DeBusschere in a note. “In other words, an official shutdown is not needed to slow the economy. With TX, AZ, CA new cases and hospitalizations increasing and investors concerned that recent protest will fuel a wave of infections, the risk of persistently weak economic and earnings growth has increased. S&P fair value estimates are falling as a result.

And it’s those macroeconomic concerns that ultimately feed into the cautiousness expressed by Powell, which the market hated seeing.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“I think as we look out, we have to be a little bit careful with how the health crisis evolves. We have to remember it’s a health crisis that has led us into this. I’ve been pointing out for the last couple of weeks that if you exclude New York and New Jersey — which have been doing very well in terms of the pandemic — you have a number of rising new cases across states. Close to 20 states are seeing cases rise in the U.S.,” said Oxford Economic chief U.S. strategist Gregory Daco on Yahoo Finance’s The First Trade.” data-reactid=”38″>“I think as we look out, we have to be a little bit careful with how the health crisis evolves. We have to remember it’s a health crisis that has led us into this. I’ve been pointing out for the last couple of weeks that if you exclude New York and New Jersey — which have been doing very well in terms of the pandemic — you have a number of rising new cases across states. Close to 20 states are seeing cases rise in the U.S.,” said Oxford Economic chief U.S. strategist Gregory Daco on Yahoo Finance’s The First Trade.

Daco added, “That’s part of the first wave. It could have a direct effect on the economy just at the time when we were starting to think about recovery. The question is how strong is the fear factor and how strong are the renewed lockdown orders.”

Clearly, the market wasn’t even thinking about renewed lockdown orders headed into this week. But now they are, and it could be risk off in the markets for a little while longer.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Brian Sozzi is an editor-at-large and co-anchor of The First Trade at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.” data-reactid=”41″>Brian Sozzi is an editor-at-large and co-anchor of The First Trade at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, and reddit.” data-reactid=”52″>Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, and reddit.

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Carry On Canadian Business. Carry On!

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Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

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Imperial to cut prices in NWT community after low river prevented resupply by barges

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NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

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TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.

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