If a second wave of the virus causes the stock market to experience another strong selloff, Bitcoin’s correlation will likely carry the asset lower as well. A conversation on the latest market-moving news. In this election cycle, many globalist Democrats are supporting policies that push narrow corporate interests at the expense of American workers. Day trading is surging thanks to free trades and mobile apps, but financial planners warn there’s pain ahead for these novice investors. Covina, CA, June 25, 2020 (GLOBE NEWSWIRE) — The global modular and prefabricated building market accounted for US$ 149.7 billion in 2019 and is…
The United States has barely begun to reopen its economy and it already experienced a resurgence of the pandemic. The last time cases spun out of control, it was Bitcoin and the stock market’s undoing.
Cases are rising in the South and the Western parts of the country, erasing nearly two months’ worth of preventative measures. How will markets respond to the return to quarantine and increasing infection rates?
While Northern states are seeing dramatic results from strict lockdown conditions, cases in the South and West have been climbing.
This week, the United States reported the highest increase in total reported cases of the outbreak since April.
The United States has the largest death toll out of the entire global community. However, health officials claim that people are just getting “complacent.”
Dr. Don Williamson, head of the Alabama Hospital Association, adds that there “is nothing that I’m seeing that makes me think we are getting ahead of this.”
Another healthcare professor Dr. Joseph Gerald, of the University of Arizona, claims “we are in deep trouble” as a nation.
Infectious-disease expert at the Baylor College of Medicine in Texas, Dr. Peter Hotez, doesn’t believe a vaccine will provide the “rescue” that the world expects.
The United States is only at the beginning stages of reopening its struggling economy. Stimulus and money printing left and right has kept the economy and stock markets afloat.
But it can’t save the health care system nor can it fight a virus.
With fear returning, cases rising, and all that uncertainty looming over markets, another crash could be ahead.
The last crash came about when markets first learned of the potential impact the pandemic was going to have. With another wave of the virus starting, another wave of selling is likely.
Ahead of the selloff, CBOE’s VIX index predicting market volatility based on the S&P 500 began to rise. VIX recently fell back below a level that appears to trigger a surge in the metric.
However, starting about two weeks ago, a spike in the VIX broke through that level again, and it is currently holding.
The correlation between VIX, the S&P 500, and Bitcoin can be seen in the chart below.
If the stock market experiences another strong selloff, Bitcoin’s correlation will likely carry the asset lower as well. How markets will react beyond that is anyone’s guess.
The initial panic from dealing with the unknown has worn off but left behind a weakening dollar and US economy. The dollar’s weakness has left it vulnerable to competing currencies, as well as Bitcoin.
Making matters worse, the country has erupted with civil unrest and widespread protests. These protests often neglect social distancing measures and are attributing to the growing number of cases.
All of the uncertainty and other underlying political and economic factors point to more downside in financial markets in the days ahead.
Author: Tony Spilotro
Stock market live updates: Dow drops 500, TX reverses reopen, Gap jumps 30% on Kanye collab
Traders wear masks as they work on the floor of the New York Stock Exchange as the outbreak of the coronavirus disease (COVID-19) continues New York, May 27, 2020.
Lucas Jackson | Reuters
This is a live blog. Check back for updates.
The major averages were sharply lower around midday as the number of coronavirus cases continues to rise across the U.S. The Dow slid more than 500 points, or 2.1%. The S&P 500 and Nasdaq Composite were both down more than 1%. Friday’s declines put the three averages on pace for weekly losses. —Imbert
Chinese officials have reportedly indicated that U.S. involvement in Hong Kong and Taiwan matters could impact purchases of farm goods as outlined by “phase one” of the trade deal, according to The Wall Street Journal. Citing people familiar with the matter, the report said that China remains committed to the trade deal, but officials believe that both sides need to continue to “work together” with the U.S. not “meddling” in the country’s dealings with China and Taiwan. On Thursday the U.S. Senate passed legislation imposing sanctions on those who back efforts to restrict Hong Kong’s autonomy. – Stevens
Shares of Bed Bath & Beyond jumped 8% on Friday after Bank of America said Buybuy Baby’s enterprise value could be equal to nearly all the current enterprise value of Bed Bath & Beyond. “While there are several significant earnings opportunities for the core Bed & Bath Beyond business under strong management, we believe one of the most underappreciated assets of BBBY is its buybuy Baby banner,” Bank of America research analyst Curtis Nagle said in a note to clients titled “don’t throw this Baby out with the bath water.” Bed Bath & Beyond doesn’t disclose the baby retailer’s metrics but the firm estimates Buybuy Baby is generating at least $1.2 billion in sales, well above the company average. Bank of America — which has a buy rating on Bed Bath & Beyond — hiked its price target to $14.50 per share from $12.50 per share.
Stocks tumbled to their lows of the day around mid-morning, with the Dow sliding more than 600 points, after Texas Gov. Greg Abbott said the state would roll back some reopening measures. “At this time, it is clear that the rise in cases is largely driven by certain types of activities, including Texans congregating in bars,” Abbott said in a release. Friday’s steep losses put the Dow and S&P 500 down more than 2% each for the week. —Imbert
Shares of Wells Fargo and Capital One tumbled after Morgan Stanley analyst Betsy Graseck said they may be forced to cut their dividends after the Federal Reserve stress test introduced a new rule governing the quarterly payouts.
The Fed released the results of its annual bank exam Thursday, revealing a new formula for dividend payouts that dictates that a lender’s dividend cannot exceed its average net income from the previous four quarters.
Based on Graseck’s estimates for second-quarter earnings, that means Wells Fargo would need to cut its third-quarter dividend to $0.36 from $0.51, and Capital One would have to slash it to zero, from its current $0.40, the bank analyst wrote Friday in a research report. Shares of Wells Fargo tumbled 4.4% shortly after the open of trading in New York, while Capital One fell 3.5%.
Shares of companies most sensitive to the economy’s reopening, including airlines and cruise lines, moved lower on Friday as Covid-19 cases continue to rise in the U.S. Royal Caribbean and Norwegian Cruise Line fell around 3% each, while Carnival Corporation slid 1%. United Airlines dropped more than 5%, while Delta and American were down 3% and 4%, respectively. Casino names also took a hit, with Las Vegas Sands and MGM tumbling more than 2%. – Stevens
Shares of Virgin Galactic opened up as much as 5.6% in trading before slipping, after the space tourism company successfully completed its second glide flight test in New Mexico on Thursday. Virgin Galactic said that, after completing “an extensive data review” of the glide flight, it will begin preparing for full rocket-powered test flights. – Sheetz
Texas Gov. Greg Abbott announced Friday morning that the state is reinstating restrictions on some businesses after the spread of the coronavirus accelerated recently in the state. Under the new rules, bars are closed to in-person customers, while restaurants cannot exceed 50% capacity starting on Monday. Additionally, rafting and tubing businesses must close and local governments must approve outdoor gatherings of more than 100 people. —Pound
The major averages moved lower at the opening bell as bank stocks weighed on the broader market. The Dow dropped 186 points for a loss of 7%. The S&P 500 and Nasdaq Composite were down 0.45% and 0.24%, respectively. The Dow and S&P are on track to end the week lower, while the Nasdaq is set to eke out a small gain. – Stevens
- SunTrust raised its price target on Amazon to $3,400 from $2,700.
- Deutsche Bank upgraded eBay to buy from hold.
- Bernstein downgraded Boeing to market perform from outperform.
- Rosenblatt initiated DraftKings as buy.
- Wells Fargo raised its price target on Snap to $28 from $20.
- Evercore ISI named Qualcomm a top pick.
- Deutsche Bank raised its price target on Amazon to $3,333 from $2,750.
Shares of Gap surged more than 15% in premarket trading after the company announced a partnership with musician Kanye West. West tweeted out a promotional photo that had “developed by Yeezy and Gap” written on a bag. He also tweeted about the partnership using the hashtag #WestDayEver. The Yeezy-Gap line will be aimed at young shoppers, according to Reuters. —Pound
Bernstein downgraded shares of Boeing to market perform on Friday based on a lower delivery outlook over the long-term. The firm pointed to uncertainty around when the 737 Max will return to the sky, as well as questions around what the company’s production ramp will look like once operations resume. “To reflect this uncertainty around the demand environment and return timeline, we have reduced our 2020 deliveries forecast from 80 to 40, and assumed a slower delivery and production ramp in 2021 and beyond,” the firm said. Bernstein also cut its full-year 2020 to 2024 free cash flow estimates for the company by around $9.5 billion. Shares of Boeing slid 1% during premarket trading. For the year, the stock is down 46%. – Stevens
On Thursday the Federal Reserve imposed new restrictions on U.S. banks after its annual stress test found that several banks could get uncomfortably close to minimum capital levels in scenarios tied to the coronavirus pandemic. The Fed said in a release that big banks will be required to suspend share buybacks and cap dividend payments at their current level for the third quarter of this year. The regulator also said that it would only allow dividends to be paid based on a formula tied to a bank’s recent earnings. Shares of Wells Fargo slid more than 2% during premarket trading, while JPMorgan and Bank of America were each down more than 1%. Goldman Sachs was more than 3% lower. – Son, Stevens
Shares of Nike slid more than 3% during premarket trading after the company reported a surprise loss for the fourth quarter as sales fell 38% year-over-year. Street analysts had expected the sportswear maker to report a profit of 7 cents per share, but the company instead lost 51 cents per share. By comparison, in the fourth quarter of 2019 the company earned 62 cents per share. Revenue also came up short as stores were forced to close amid the pandemic. Digital sales did jump 75%, but expenses for shipping and returns cut into margins. – Stevens
U.S. stock index futures pointed to a mixed open for the major averages on the final trading day of a volatile week. The Dow Jones Industrial Average was set to shed 40 points at the open, while the S&P 500 and Nasdaq-100 were set to rise 0.1% and 0.2%, respectively. Bank stocks weighed on the market after the Federal Reserve imposed restrictions on bank dividends following its annual stress test. During Thursday’s session the sector had rallied after the Federal Deposit Insurance Commission officials said they were loosening some restrictions on the Volcker Rule.
Elsewhere in the market, stocks most sensitive to the economy’s reopening, including airlines and cruise lines, moved higher, despite Texas and Florida pausing their reopening efforts as the number of Covid-19 cases in the states jump.
For the week, the S&P and Dow are slated to register their second weekly loss in three weeks, while the Nasdaq Composite is on track to end the week higher. – Stevens
– With reporting from CNBC’s Hugh Son, Michael Sheetz, Maggie Fitzgerald and Michael Bloom.
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Author: Pippa Stevens,Jesse Pound,Fred Imbert
Globalist Democrats attack Trump’s ‘America First’ trade policy
As President Trump recently declared at the Oklahoma rally, “Biden supported every Globalist attack on the American worker.” In contrast, Mr. Trump has been working overtime for the American people, and we are excited to see him back on the road with the chance to offer his vision of restarting the world’s greatest economy to the workers most eager for America to thrive again.
In this election cycle, many globalist Democrats are supporting policies that push narrow corporate interests at the expense of American workers. The political fight that we are seeing is really a battle of two worldviews: Mr. Trump favors an America First trade policy that puts American workers first, while others support a globalist vision that ships American jobs overseas.
Under Mr. Trump’s leadership, we secured new trade deals and introduced the Section 232 steel and aluminum program to protect U.S. national security. But beyond national security, Mr. Trump has secured several America First trade victories intended to reverse decades of bad trade deals that shipped our manufacturing capabilities and good-paying jobs to other countries.
Having travelled across the nation with then-candidate Trump in 2016, I saw first-hand his determination to fix U.S. trade policy, defend American workers and protect critical industries.
When it comes to Mr. Trump’s aluminum tariffs, globalist elites continue to call on the president to lift tariffs on all countries, without recognizing the unfair trade practices these other countries engage in every day. During these uncertain times, it’s clear that our supply chains for critical industries need to be secure. American manufacturing of essential goods such as steel, aluminum and prescription drugs needs to once again become the pinnacle of the world, fully independent of raw materials or intermediate components from unreliable countries.
Millions of American manufacturing workers, including many Reagan Democrats, who stood with Donald J. Trump in 2016, will once again stand with our president in 2020 because he defends them from countries that lie, cheat and steal their way to global prominence.
In May last year, globalist Democrats insisted that Canada be granted an exemption to the Section 232 tariffs to ensure passage of the U.S.-Mexico-Canada Agreement (USMCA). As part of that agreement, Canada agreed that if their aluminum imports surged following their exemption, the United States could reimpose the tariffs. Since Canada was exempted, monthly imports of Canadian aluminum have surged by over 80% compared to the period before the tariffs were lifted. At a time when the U.S. industry is dealing with the effects of a global pandemic, this has had devastating effects on communities across the nation.
According to the Organization for Economic Co-operation and Development (OECD), Canada handed out more than $850 million in subsidies to its aluminum industry between 2013 and 2017, which was not good for millions of American workers. And then, following its exemption from Mr. Trump’s Section 232 program, the Canadians stuffed their primary aluminum industry with an additional $100 million-plus in new subsidies. Now 700 American aluminum workers are being laid off in Washington state and the globalist Democratic congresswoman who represents these workers advocated for the tariffs on Canada to be lifted.
The surge of Canadian aluminum is now threatening thousands of direct and indirect jobs in Kentucky, New York, Missouri, South Carolina and other states. Special interest groups that claim the Canadian surge is not a problem are more interested in lining the pockets of their foreign members.
While these globalist elites claim to support America First, most of their members produce primary aluminum in China, the Middle East and Canada. Aside from their support for trade policies that ship jobs overseas, they attack Mr. Trump’s Section 232 tariffs and contribute heavily to Senate Democrats who oppose the reelection of Donald J. Trump.
To put American aluminum workers first, it is critical that the Trump administration reimpose tariffs on aluminum imports from countries that cheat, including 10% for Canada. Such an action would only be following through on the campaign promises of 2016 to protect the millions of American manufacturing workers from countries that do not play by the rules, such as Canada.
Mr. Trump has an intelligent trade policy, and broad-based tariffs that force others to play by the rules is the only way to protect domestic industries and to ensure that men and women in key 2020 states such as Indiana, Ohio, Pennsylvania, Kentucky, Missouri, Michigan and South Carolina know that their voices have been heard. That’s what candidate Trump promised — and that’s what President Trump has delivered.
The historic Trump-Pence election in 2016 was fueled by a mission to put American workers first. We will win in November by standing up for millions of American manufacturing workers, as we work together to rebuild the greatest economy in the world and Keep America Great.
• Corey R. Lewandowski is a senior adviser to Trump Pence 2020. He served as Donald Trump’s campaign manager for the 2016 presidential election and is the author of two New York Times bestselling books.
Author: The Washington Times http://www.washingtontimes.com
Robinhood’s Day Trading Surge Will End Badly For Investors, Money Managers Warn
Day trading is surging during the pandemic but money managers warn novice investors are in for some … [+] pain.
“That’s the way it works. Who can see what’s coming,” said Smith, a fintech entrepreneur, author, and CEO of the Foundation for the Study of Cycles. “It’s going to end up being very bad for the people who are throwing their money at Robinhood. People don’t need free and easier access to markets. That’s not where success comes from.”
The number of newbie investors trading during the pandemic is surging, with mobile trading app Robinhood adding 3 million new accounts in the first quarter alone. That newfound interest in stock trading as people remain sheltered in place has made some novice investors rich while leaving others destitute. That dichotomy was on full display earlier this month when Alexander E. Kearns, a 20-year University of Nebraska student took his own life after thinking he racked up hundreds of thousands of dollars in losses in his Robinhood account. Kearns was one of the millions of people to take up trading stocks during the pandemic, eventually branching into options trading with little idea of what he was doing. A note found on his computer by his parents after his death said it all: “How was a 20-year-old with no income able to get assigned almost a million dollar worth of leverage?” Since then Robinhood told Forbes its putting safeguards in place around options trading and making changes to how buying power is displayed on its app.
Kearns is an extreme example of what can go wrong with day trading as this way of investing grows in popularity again during the pandemic. Thanks to commission-free trading, mobile apps, and low barriers to entry, the recent day trading boom is creating stock market euphoria not seen in almost twenty years.
That’s spooking institutional investors, raising concerns a stock market bust is coming. Earlier in June Citi said day trading has pushed its Panic/Euphoria Model to the highest euphoria level since 2002, reported Bloomberg. As a result, there’s about a 70% chance of the markets diving in the next year, Citi warned. Citi noted retail investors are ignoring the fact there’s record unemployment amid the pandemic, tensions between China and the U.S. are intensifying, there’s plenty of social unrest, and the cases of COVID-19 are on the rise. All of that is bad news for the economy yet stock trading continues unabated.
It also comes at a time when institutional investors are selling stocks. That should raise a red flag for retail investors but it isn’t. “Institutional investors who in theory do this all day are selling shares and individuals and families are buying shares other people don’t see as a long-term investment,” said Brent Weiss, CFP, chief evangelist and co-founder at Facet Wealth, a financial planning firm located in Baltimore. “Digital literacy does not equate to financial literacy. Giving someone access to the investing markets doesn’t mean long term success.”
Robinhood Has An Important Role To Play
That’s not to say the money managers aren’t fans of Robinhood’s mission to level the playing field for investors. Sure, they get paid by creating a long-term financial plan and are biased toward handholding, but also see a need for apps like Robinhood. But they argue platforms like Robinhood have gamified the system, making it almost too attractive for novice investors to get in the markets. That sets them up for long term failure if they think they can simply throw stimulus checks at stocks and become rich overnight. Professional investors tend to focus on the long term, relying heavily on risk management to meet goals well into the future. Day traders tend to hold disdain for those views. “Nobody talks about risk management, it’s all about free trades,” says Smith of The Foundation of the Study of Cycles. “If you can get a free knife juggling kit would you want to use it?”
Author: Donna Fuscaldo
Global Modular and Prefabricated Building Market is expected to drive due to rising growth in construction spending – PMI
Covina, CA, June 25, 2020 (GLOBE NEWSWIRE) — The global modular and prefabricated building market accounted for US$ 149.7 billion in 2019 and is estimated to be US$ 287.2 billion by 2029 and is anticipated to register a CAGR of 6.8%
Developers are looking to decrease the cost of construction and reduce construction deadlines. This preference pf developer has led to drive the growth of the prefabricated and modular buildings.
The report “Global Modular and Prefabricated Building Market, By Product Type (Skeleton System, Panel System, Cellular System, and Combined System), By Module Type (Bathroom Pods, Kitchenettes, and Others (Roofs, Walls, and Windows)), By Application (Industrial, Commercial, and Residential), and By Region (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa) – Trends, Analysis and Forecast till 2029”.
- In June 2020, Algeco Group, the leading modular space leasing business in Europe and the Asia Pacific, announced that it has agreed to acquire Wexus Group AS from Norvestor Equity AS and other shareholders. Wexus is a leading provider of high-quality modular building solutions in the Nordic region. Headquartered in Norway, Wexus also has operations in Sweden and a modern production facility in Estonia.
- In June 2018, GRAITEC, an international BIM, Fabrication, and Design software developer for AEC, and Autodesk Platinum Partner across Europe announced the acquisition of Arma Plus, a French-based company that provides IT and Fabrication Software solutions for the construction, steel and concrete industries.
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Growing awareness about advantages of prefabricated building and structural steel and increasing acceptance among the population, as they are flexible, energy-efficient and faster completion are the key factors propelling the growth of the global modular and prefabricated building market. In addition, shifting customer focus towards minimizing emissions and waste management coupled with the rising adoption of green building practices among the population are other factors influencing the growth of the target market. Moreover, rapid advancements in the construction industries and an increasing number of infrastructural activities coupled with rising disposable income are expected to drive the growth of the global market over the forecast period. Further, a large number of startups have entered the modular construction industry and are acquiring a huge interest from venture capital firms and angel investors. For instance, in January 2018, Katerra raised US$ 865 million in a Series D funding round controlled by SoftBank.
Browse 60 market data tables* and 35 figures* through 140 slides and in-depth TOC on “Global Modular and Prefabricated Building Market”, By Product Type (Skeleton System, Panel System, Cellular System, and Combined System), By Module Type (Bathroom Pods, Kitchenettes, and Others (Roofs, Walls, and Windows)), By Application (Industrial, Commercial, and Residential), and By Region (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa) – Trends, Analysis and Forecast till 2029
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Key Market Insights from the report:
The global modular and prefabricated building market accounted for US$ 149.7 billion in 2019 and is estimated to be US$ 287.2 billion by 2029 and is anticipated to register a CAGR of 6.8%. The market report has been segmented on the basis of product type, module type, application, and region.
- By product type, the skeleton system segment leads the global market in terms of revenue and expected to maintain its position over the forecast period. As huge private industries and organizations have utilized the prefabrication concrete structure as to the skeleton structure is the factor anticipated to boost the growth of this segment.
- By module type, the bathroom pods segment leads the global market in terms of revenue and projected to maintain its position during the forecast period.
- By application, the industrial segment leads the global market in terms of revenue and expected to maintain its position in the coming years.
- By region, the market in North America estimated for major share in terms of revenue in 2019 and is anticipated to create lucrative growth during the forecast period. Rising disposable income and spending capacity among the population particularly in the US is the factor anticipated to boost the growth of the target market in the region.
To know the upcoming trends and insights prevalent in this market, click the link below:
The prominent player operating in the global modular and prefabricated building market includes Red Sea International, Algeco Scotsman, Inc., Champion Home Builders, Inc., Astron Buildings LLC, Butler Manufacturing Company, Lindal Cedar Homes, Inc., Kirby Building Systems LLC, Ritz-Craft Corporation, Modern Prefab Systems Pvt. Ltd., Par-Kut International Inc., and United Partition Systems, Inc.
The market provides detailed information regarding the industrial base, productivity, strengths, manufacturers, and recent trends which will help companies enlarge the businesses and promote financial growth. Furthermore, the report exhibits dynamic factors including segments, sub-segments, regional marketplaces, competition, dominant key players, and market forecasts. In addition, the market includes recent collaborations, mergers, acquisitions, and partnerships along with regulatory frameworks across different regions impacting the market trajectory. Recent technological advances and innovations influencing the global market are included in the report.
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Prophecy Market Insights is specialized market research, analytics, marketing/business strategy, and solutions that offers strategic and tactical support to clients for making well-informed business decisions and to identify and achieve high-value opportunities in the target business area. We also help our clients to address business challenges and provide the best possible solutions to overcome them and transform their business.
Some Important Points Answered in this Market Report Are Given Below:
- Explains an overview of the product portfolio, including product development, planning, and positioning
- Explains details about key operational strategies with a focus on R&D strategies, corporate structure, localization strategies, production capabilities, and financial performance of various companies.
- Detailed analysis of the market revenue over the forecasted period.
- Examining various outlooks of the market with the help of Porter’s five forces analysis, PEST & SWOT Analysis.
- Study on the segments that are anticipated to dominate the market.
- Study on the regional analysis that is expected to register the highest growth over the forecast period
Key Topics Covered
- Study Deliverables
- Study Assumptions
- Scope of the Study
- Opportunity Map Analysis
- Market at Glance
- Market Share (%) and BPS Analysis, by Region
- Competitive Landscape
- Heat Map Analysis
- Market Presence and Specificity Analysis
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Author: Prophecy Market insights