Econ #s en US Trade Deficit Expands 16.7% In April <p>The U.S. Commerce Department reported Thursday that the national trade deficit expanded 16.7% to $49.4 billion in April. Economists had forecasted $49 billion flat.</p> <h3>What Happened</h3> <p>Exports fell a record 20.5% to a 10-year low ($151.3 billion) as lockdowns disrupted production and travel. Goods declined 25.2% to $95.5 billion, with motor vehicles and car parts striking their lowest levels since March 1992. Consumer goods exports hit 2006 levels, ...</p><p><a href= alt=US Trade Deficit Expands 16.7% In April>Full story available on</a></p> Coronavirus Covid-19 News Trade Econ #s News Econ #s Benzinga Thu, 04 Jun 2020 16:26:24 +0000 Elizabeth Balboa 16181814 at Taking A Breath: Jobless Claims Disappoint, But ECB Stimulus Greeted Positively <p>(Thursday Market Open) The stock market lately has acted like a boxer that takes punch after punch and comes back stronger after each round. The <strong>S&amp;P 500 Index</strong> (SPX) just had its best 50-day rally in history right after COVID-19 shut down the world&rsquo;s biggest economies.</p> <p>Nothing goes straight up forever, of course, so it&rsquo;s not too surprising to see the pause button get pressed Thursday morning. With a lot of potentially negative data to sift through today&mdash;including a slightly disappointing jobless claims read&mdash;and possibly tomorrow, some profit taking can&rsquo;t be ruled out.</p> <p>The SPX has climbed 11% since mid-May, a pace that&rsquo;s hard to believe and probably even harder to maintain. If the stock market can have a day where it&rsquo;s just down a bit, that&rsquo;s not necessarily a bad thing, considering where we&rsquo;ve been.&nbsp;</p> <p>Major indices started to climb back from their earlier overnight losses as the opening bell loomed, helped in part by news that the European Central Bank (ECB) today expanded its bond-buying program above $1.5 trillion. Markets in the U.S. have been rallying partly due to the old &ldquo;Don&rsquo;t fight the Fed&rdquo; philosophy as the Fed throws money at things, and now the ECB is doing more of that, too. It&rsquo;s hard to fade this in the short-term.</p> <p>As the month continues, the rubber might hit the road thanks to numbers starting to come in on how stores and other businesses are doing with reopening. Investors are probably going to examine that data very closely to see if all the optimism was justified.&nbsp;</p> <p>One interesting feature this morning is that despite the overall weakness in stock indices, travel company shares are solidly higher in pre-market trading. Stocks like <strong>Boeing Co</strong> (NYSE: <a class="ticker" href="">BA</a>), <strong>United Airlines Holdings, Inc. </strong>(NASDAQ: <a class="ticker" href="">UAL</a>) and <strong>Carnival Corporation &amp; PLC</strong> (NYSE: <a class="ticker" href="">CCL</a>) were among the gainers, and that suggests the reopening optimism trade isn&rsquo;t necessarily going away. However, big bank stocks, which keystoned yesterday&rsquo;s big rally, look mixed in pre-market trading.</p> <p><strong>Costco Wholesale Corporation</strong> (NASDAQ: <a class="ticker" href="">COST</a>) shares moved higher in pre-market trading as May sales looked strong. Online sales were especially good, rising more than 100% over the four weeks of May.</p> <h2>Jobs Picture Takes Center Stage</h2> <p>A lot of the passion Wednesday had its roots in a private sector jobs report for May that showed more than 2 million jobs lost during the month. That&rsquo;s awful news, of course, but in the context of analysts expecting 8 million job losses, the idea was it could have been much worse.</p> <p>That bittersweet report led right into today&rsquo;s weekly new jobless claims data. And tomorrow we get the May payrolls report. Weekly claims came in at 1.877 million, which was a little worse than expected by analysts but still down slightly from just above 2 million the previous week. Anyone optimistic about reopenings would probably want to see that number drop pretty steadily over the coming weeks, though it could take a while to get back to what had been the norm of below 300,000.&nbsp;</p> <p>Analysts expect tomorrow&rsquo;s report to show 8.5 million job losses in May, down from more than 20 million in April, according to research firm</p> <p>Crude took a pause from its rally early Thursday. The recent crude strength has been lifting Energy shares and spreading hopes that firmer demand for oil might reflect a firming economy. So-called &ldquo;safe-haven&rdquo; investments like gold and the dollar both fell Wednesday and then ticked up slightly early Thursday, so consider tracking their performance as the day continues to get a sense of the risk appetite.&nbsp;</p> <p>Bonds are actually unchanged this morning, which could be a good sign.</p> <h2>Who&rsquo;d Have Thought? Nasdaq Approaches New Record High</h2> <p>This year&rsquo;s had a little of everything, and we&rsquo;re not even halfway through. There&rsquo;ve been record highs, mind-numbing 35% declines in a matter of weeks, horrible data worse than any since the Great Depression, ...</p><p><a href= alt=Taking A Breath: Jobless Claims Disappoint, But ECB Stimulus Greeted Positively>Full story available on</a></p> BA BAC C CCL COST FITB Jamie Dimon JPM MITB MSFT News RF TD Ameritrade UAL WFC Eurozone Econ #s Markets COST US22160K1051 FITB US3167731005 MSFT US5949181045 BA US0970231058 BAC US0605051046 C US1729674242 CCL PA1436583006 JPM US46625H1005 RF US7591EP1005 WFC US9497461015 UAL US9100471096 MITB News Eurozone Econ #s Markets Benzinga Thu, 04 Jun 2020 13:45:20 +0000 JJ Kinahan 16180008 at Thursday's Market Minute: Will the Market Care About May Jobs? <p>Stocks are set to open lower this morning as positive sentiment surrounding economic reopening cools. So far, this week has marked a historic start to June, seeing the S&amp;P 500 (SPX) and Dow Jones Industrial Avg. ($DJI) more than 10 percent higher compared to the previous month. The lift in stocks comes as more cities are re-opening ...</p><p><a href= alt=Thursday&#039;s Market Minute: Will the Market Care About May Jobs?>Full story available on</a></p> News TD Ameritrade Econ #s Markets Media News Econ #s Markets Media Benzinga Thu, 04 Jun 2020 13:19:02 +0000 TD Ameritrade Network 16179670 at US Initial Jobless Claims Fall Week-Over-Week, Coronavirus 'Continues To Weigh On Businesses Of All Sizes' <p>New initial U.S. jobless claims fell week-over-week from 2.13 million to 1.88 million in the final week of May.</p> <p>Continuing jobless claims rose from 20.84 million to 21.49 million, according to statistics released Thursday by the federal government.&nbsp;</p> <p>Economists were expecting 1.8 million new jobless claims and 20.05 million continuing claims.&nbsp;</p> <p>The numbers cut the four-week average for jobless claims from 2.61 million to about 2.28 million.</p> <h3>The Sectors Where It Hurts</h3> <p>A day before the jobless numbers came out, ADP released a report suggesting that private payrolls fell by just 2.76 million in May, representing outperformance over economist forecasts (8.75 million) and April&rsquo;s record plunge (19.6 million).</p> <p>&ldquo;The impact of the COVID-19 crisis continues to weigh on businesses of all sizes,&rdquo; Ahu Yildirmaz, co-head of the ADP Research Institute, told CNBC.</p> <p>&ldquo;While the labor market is still reeling from the ...</p><p><a href= alt=US Initial Jobless Claims Fall Week-Over-Week, Coronavirus &#039;Continues To Weigh On Businesses Of All Sizes&#039;>Full story available on</a></p> Coronavirus Covid-19 employment News SPY Unemployment Econ #s SPY US78462F1030 News Econ #s Benzinga Thu, 04 Jun 2020 12:56:15 +0000 Elizabeth Balboa 16179070 at The First Week of June Is All About the May's Jobs Report <p>The highlight of this week will be most certainly be the May unemployment report, as the Bureau of Labor Statistics is expected to report another decrease of 8 million nonfarm payrolls after April&#39;s record decline of 20.5 million. But several notable companies will also be releasing their earnings reports and discussing their strategies for the post-COVID-19 era.</p> <h4>Monday</h4> <p><strong>Regeneron Pharmaceuticals Inc</strong> (NASDAQ: <a class="ticker" href="">REGN</a>) is having a conference call today to discuss its portfolio of cancer drugs in clinical trials.</p> <h4>Tuesday</h4> <p>Earnings will be reported by <strong>CrowdStrike Holdings Inc</strong> (NASDAQ: <a class="ticker" href="">CRWD</a>), <strong>Dick&#39;s Sporting Goods Inc </strong>(NYSE: <a class="ticker" href="">DKS</a>) and <strong>Zoom Video Communications</strong> (NASDAQ: <a class="ticker" href="">ZOOM</a>). Expectations could hardly be higher for the digital communication specialist, for which interest has soared causing&nbsp;key engagement figures to skyrocket to record levels. Much of that optimism is already reflected in its stock price that has more than doubled since the start of the year.</p> <p>Another video tech specialist <strong>Ambarella</strong> (NASDAQ: <a class="ticker" href="">AMBA</a>) will report its earnings along with answering some big questions as it competes in quite attractive industry niches such as AI. Until now, its operating results haven&#39;t yet demonstrated a defensible market ...</p><p><a href= alt=The First Week of June Is All About the May&#039;s Jobs Report>Full story available on</a></p> ADSK AMBA AMTD AVGO BIIB BKNG CMCSA CPB CRWD DKS Earnings GOOG GOOGL GPS HES MSFT News REGN SCHW SJM TMUS WMT WORK ZOOM Previews Econ #s Markets Trading Ideas General Mon, 01 Jun 2020 15:04:57 +0000 IAM Newswire 16150870 at Manufacturing Checkup: Fresh Data To Start Week As Market Deals With U.S. Unrest, China Concerns <p>Add U.S. unrest to the wall of worry the market continues to climb in 2020. Between that, the pandemic, increased tension with China, and disastrous data, stocks have shown major resilience&mdash;though to be fair they&rsquo;ve gotten a massive dose of assistance from the Fed.&nbsp;</p> <p>There&rsquo;s a dichotomy between rioting in major U.S. cities, Hong Kong still having some issues, and stock market optimism as the U.S. continues to open up its economy.&nbsp;</p> <p>Another negative item crossed the wires this morning as China ordered companies to temporarily halt U.S. imports of farm goods, including soybeans and pork. This means the war of words might be turning into a more serious skirmish, and the news put a little damper on trading in the pre-market hours just ahead of the opening bell.&nbsp;</p> <p>Otherwise, things feel pretty flat to start the new week and month after stocks scrambled to 38% gains over April and May from the March bottom. There just don&rsquo;t seem to be too many catalysts out there today, other than the nice data from China and the fresh worries about U.S. exports to that country. Earnings and data schedule appear a bit thin, too.</p> <p>Investors spend a lot of time searching for glimmers of hope in the global economy, and they got another one Monday&mdash;this time from China. In a surprising development, manufacturing perked up a bit in May, according to a private survey.&nbsp;</p> <p>We&rsquo;re going to get a glance at May U.S. manufacturing activity this morning, too, and it&rsquo;s expected to still be in contraction but a bit better than a month earlier, judging from Wall Street&rsquo;s consensus estimates (see more below).</p> <h3>Trade Jitters Haven&rsquo;t Gone Away</h3> <p>The concern late last week had been that maybe President Trump would remove the U.S. from the trade deal signed with China nearly six months ago. That agreement had brought a brief period of calm to the relationship. When Trump didn&rsquo;t announce any major initiatives Friday, a few buyers showed up.</p> <p>However, we&rsquo;re not out of the woods yet on the China trade front, as today&rsquo;s news showed. Remember, neither country&rsquo;s economy is necessarily in good shape to weather any trade hiccup (see more below).</p> <p>Also, data remain a headwind. Chicago PMI and Michigan sentiment last Friday both disappointed and suggested the economy didn&rsquo;t gain much traction the last few weeks. When sentiment is negative, it often points toward consumers getting tighter with their pocketbooks. That&rsquo;s probably something to expect, anyway, given the high levels of unemployment. For retail companies, it&rsquo;s the current quarter when struggles might really intensify, with most of the early-crisis stockpiling over.</p> <p>Obviously, the pace of reopenings and any potential hiccups as the country continues the long road back to normalcy remain front and center here in the new month. We&rsquo;re in an incredibly fragile economy right now, and things are just getting back. We need as much momentum as possible that encourages people to go out and spend money. Anything that upsets that fragile sort of enterprise has the opportunity to really set the stock ...</p><p><a href= alt=Manufacturing Checkup: Fresh Data To Start Week As Market Deals With U.S. Unrest, China Concerns>Full story available on</a></p> AVGO CLX Government MSFT News TD Ameritrade WORK ZM Technicals Global Econ #s Economics Markets Trading Ideas General MSFT US5949181045 CLX US1890541097 AVGO SG9999006241 ZM WORK News Government Technicals Global Econ #s Economics Markets Trading Ideas General Benzinga Mon, 01 Jun 2020 14:30:44 +0000 JJ Kinahan 16150744 at What Makes the Mexican Peso Important? <p> <img alt="" class="attachment-full size-full wp-post-image" src="" style="display:none; height:900px; width:1600px" /></p> <p>In the world of emerging market currencies, the Mexican peso is the most actively traded. According to the Bank of International Settlement&#39;s triennial Foreign exchange turnover survey released in April 2019, the peso is the 15<sup>th</sup> most actively traded currency.</p> <p>Ten years ago, it was among the top 10. This slide has more to do with the rise in popularity of other currencies than the falling importance of the Mexican Peso. With that said, political uncertainty has also changed the market&#39;s appetite for the peso and affected how much individual and institutional investors want to be exposed to the currency but in time, that will change.</p> <p>For Americans, the Mexican Peso is important to watch and trade for a number of reasons.&nbsp; First and foremost, Mexico is a major trading partner of the U.S., many Americans have businesses and ...</p><p><a href= alt=What Makes the Mexican Peso Important?>Full story available on</a></p> CME Group Government Mexican peso News Oil Forex Econ #s Markets General Fri, 29 May 2020 19:16:04 +0000 CME Group 16141755 at 21.1 Million Continuing Jobless Claims And Transportation Stocks Rip Higher <p><strong>This week&#039;s DHL Supply Chain Pricing Power Index: 25 (Shippers)</strong></p> <p><strong>Last week&#039;s DHL Supply Chain Pricing Power Index:</strong> <a href=""><strong>20 (Shippers)</strong></a></p> <p><strong>Three-month DHL Supply Chain Pricing Power Index Outlook: 50 (Balanced)</strong></p> <p>The <strong>DHL Supply Chain Pricing Power Index </strong>uses the analytics and data contained in <strong>FreightWaves</strong> <strong>SONAR </strong>to analyze the market and estimate the negotiating power for rates between shippers and carriers.</p> <p>The Memorial Day holiday throws weekly volume comparisons out the window, but it seems relatively more volumes moved this year than each of the past two years this week. Rejection rates have staggered, but spot volumes are on the rise but remain depressed. There are now 21.1 million Americans on continuing unemployment benefits, yet our transportation indices are all up 4%-plus. </p> <p>The Pricing Power Index is based on the following indicators:</p> <p><strong>Load volumes: Absolute levels and momentum positive for carriers</strong></p> <p>The outbound tender volume index is calculated and visualized as a seven-day moving average to smooth out daily volatility. Because of this, holidays render week-over-week comparisons nearly useless. Due to Memorial Day, OTVI now sits at 9,191.39, and has climbed 4% off the holiday bottom. Although weekly comparisons are not meaningful, comparing the net decline and recovery periods gleans insights. </p> <p>This year, the net drop in volumes was slightly less than each of the previous two years. Also, the snapback has been more pronounced this year than 2018 or 2019. That is an encouraging sign that volumes are continuing their trek to the upside this week. Volumes have risen rapidly off the bottom of mid-April, but the rate of change has accelerated in May. Between May 8th and the Sunday before Memorial Day, national tender volumes rose more than 12%. This is partly due to the typical shipper rush to  move freight before a holiday, but it also is a sign shippers are seeing demand for their goods. With much of the country now open in some capacity, freight is bound to be moving. </p> <p>A few events have occurred in May to push volumes back above the 10,000 level: agricultural harvests in California and Florida; automotive and manufacturing facilities in the Midwest reopened; and restaurants and retail stores began to open their doors after almost three months of lockdown. </p> <p>We have noticed the timing of the volume rise has coincided with consumer spending picking up. The Passport Research team will be releasing a detailed account of consumer spending and its relation to freight volumes next week. For now, consumer spending and consumer sentiment is being propped up by government stimulus. This will be a major trend to watch come August when the government money is set to expire. </p> <p><img alt="" src="" /><br /><strong>SONAR:</strong> <a href=""><strong>OTVI.USA (2020 – Blue; 2019 – Green; 2018 – Orange)</strong></a></p> <p><strong>Tender rejections: Absolute levels positive for shippers, momentum positive for carriers</strong></p> <p>Outbound tender rejections have increased week-over-week for the fourth week in a row after tumbling for the six weeks since the OTRI peak of 19.25% on March 28. Capacity has tightened as volumes began to fill markets throughout May. Overall reefer rejections ...</p><p><a href= alt=21.1 Million Continuing Jobless Claims And Transportation Stocks Rip Higher>Full story available on</a></p> DHL Supply Chain Freight News SONAR Econ #s Markets News Econ #s Markets Benzinga Thu, 28 May 2020 20:52:31 +0000 FreightWaves 16132832 at Today's Pickup: Samsara introduces Driver Efficiency Scores To Help Improve Driving Habits <p>Good day,</p> <p>Industrial internet of things (IIoT) provider Samsara announced the introduction of driver efficiency scores to improve driver behavior and increase fleet safety. Fleets can monitor different driving parameters and use Samara&#039;s fleet efficiency reports to train drivers and reduce fuel consumption, while increasing overall operational sustainability. </p> <p>Samara&#039;s report aggregates data across several criteria, including instances of truck idling, speeding, cruise control, coasting, and high torque. That apart, it also records ‘anticipation events&#039; that measure the number of braking events where the time from the accelerator to brake is less than a second. It also measures the time spent by truckers driving at the most efficient RPM, which directly corresponds to high fuel efficiency. </p> <p>Samsara believes that this report will help fleets identify inefficient driving habits, incentivize good behavior and facilitate effective feedback. </p> <h3><strong>Did you know?</strong></h3> <p>The shipments of core capital goods from the U.S. dropped 5.4% in April, according to the U.S. Department of Commerce. Core capital goods shipments are used to calculate equipment spending in the government&#039;s gross domestic product measurement. Core capital ...</p><p><a href= alt=Today&#039;s Pickup: Samsara introduces Driver Efficiency Scores To Help Improve Driving Habits>Full story available on</a></p> autonomous vehicles BA BIDU Freight Internet of Things News SOBKY UBER Topics Econ #s Markets General BIDU US0567521085 BA US0970231058 UBER SOBKY News Topics Econ #s Markets General Benzinga Thu, 28 May 2020 18:56:01 +0000 FreightWaves 16131066 at Costco Earnings On Tap After Close As Investors Mull Strong Toll Brothers Results <p>Today&rsquo;s data barrage begins with the latest look at unemployment claims and another check on Q1 economic growth. It&rsquo;s been an incredible week of gains so far in stocks, so we&rsquo;ll see if the market can draw more energy from the numbers or if the data turn out to be a drain.&nbsp;</p> <p>Jobless claims remained stubbornly high at about 2.1 million, about where analysts had expected and down from the worst levels a month ago but not the kind of number that necessarily delivers a lot of optimism. That&rsquo;s a number that hopefully starts to decline next month as the economy reopens, but we&rsquo;ll have to wait and see.&nbsp;</p> <p>The government&rsquo;s second estimate for Q1 gross domestic was negative 5%, a little below the minus-4.8% consensus on Wall Street and a little worse than the first estimate, which was also negative 4.8%. From what many economists are saying, Q1 was just the opening salvo, with Q2 declines expected to be far worse.</p> <p>The key earnings report to consider looking at this afternoon is <strong>Costco Wholesale Corporation</strong> (NASDAQ: <a class="ticker" href="">COST</a>), a big-box store that could have benefited from consumers stocking up as the crisis flared. If that&rsquo;s what people are thinking, it&rsquo;s not really showing up much in the stock, which has basically treaded water for a while.&nbsp;</p> <p>Today&rsquo;s data calendar is a little light following the host of numbers early on. Tomorrow brings another surge of data with the University of Michigan sentiment, Chicago PMI, and Personal Consumption Expenditure (PCE) prices. Remember, the Fed typically watches PCE prices pretty closely as a measure of inflation. Analysts expect a 0.6% decline for April, according to research firm</p> <p>Global stocks had a mostly higher tone overnight as many followed the U.S. lead and European shares gaining some strength as the European Commission considers a new stimulus package. More turmoil around Hong Kong capped gains on that market as they have a few other issues going on there. The war of words between China and the U.S. is starting to heat up a bit, and as we noted yesterday, neither economy is as strong as last year when both were able to weather a long trade war.</p> <p>We&rsquo;ll see today if the retail sector and travel companies can keep up the amazing momentum they&rsquo;ve had to start the week. A lot of this appears driven by the &ldquo;optimism trade&rdquo; as investors place their hopes on people getting out and shopping as stores partially open across the country.</p> <h2>3000 Reasons to Celebrate</h2> <p>You often hear that &ldquo;the third time&rsquo;s the charm.&rdquo; That may be true for some things. However, it only took two tries this week for the <strong>S&amp;P 500 Index</strong> (SPX) to close above 3000 for the first time since early March and for the <strong>Dow Jones Industrial Average</strong> ($DJI) to close above 25000.&nbsp;</p> <p>In moving solidly higher Wednesday after some shakiness around midday, the SPX also closed above its 200-day moving average for the first time in nearly three months. That&rsquo;s a positive technical signal that some analysts believe could bring more momentum into the market. On the other hand, some Wall Street observers note that stocks have come a long way already and might need additional catalysts to keep heading higher.</p> <p>Remember, the market is already priced ...</p><p><a href= alt=Costco Earnings On Tap After Close As Investors Mull Strong Toll Brothers Results>Full story available on</a></p> AAL AAPL BA COST FB Jamie Dimon Jobless Claims JPM News TD Ameritrade TOL Commodities Econ #s Markets AAPL US0378331005 COST US22160K1051 BA US0970231058 JPM US46625H1005 TOL US8894781033 FB AAL News Commodities Econ #s Markets Benzinga Thu, 28 May 2020 13:45:08 +0000 JJ Kinahan 16127758 at US GDP Contracts 5% In Q1 As Corporate, Consumer Spending Plunge: Coronavirus Triggers 'Rapid Changes In Demand' <p>The U.S. GDP contracted 5% in the first quarter of 2020, the largest&nbsp;since the 2008 recession.</p> <p>The metric was worse than the 4.8% drop economists projected, and it heralds the end of the nation&rsquo;s longest recorded expansion period and a steep drop from the previous quarter&rsquo;s 2.1% growth.</p> <p>&ldquo;The decline in first quarter GDP reflected the response to the spread of COVID-19, as governments issued &lsquo;stay-at-home&rsquo; orders in March,&rdquo; according to the <a href="">Bureau of Economic Analysis</a> (BEA). &quot;This led to rapid changes in demand, as businesses and schools switched to remote work or canceled operations, and consumers canceled, restricted, or redirected their spending.&quot;</p> <h3>It&rsquo;s Messy Under The Hood</h3> <p>The decline includes drops in personal consumer expenditures (PCE), private inventory investment and nonresidential fixed investment and exports, which were partly offset by increases in government spending and residential fixed investment.</p> <p>&ldquo;The decrease in PCE reflected a decrease in services, led by health care as well as food services and accommodations,&rdquo; the BEA said. &ldquo;The decrease in private inventory investment was mainly in nondurable goods manufacturing, led by petroleum and coal products.&rdquo;</p> <p>Profits for nonfinancial corporations decreased $169.5 billion compared to ...</p><p><a href= alt=US GDP Contracts 5% In Q1 As Corporate, Consumer Spending Plunge: Coronavirus Triggers &#039;Rapid Changes In Demand&#039;>Full story available on</a></p> BLK Bureau of Economic Analysis Coronavirus Covid-19 employment GDP News SPY Unemployment Econ #s Media SPY US78462F1030 BLK US09247X1019 News Econ #s Media Benzinga Thu, 28 May 2020 12:56:28 +0000 Elizabeth Balboa 16126779 at June Market Outlook: Big Test Looms In New Month As States Navigate Reopenings <p>The stock rally accelerated in April and May amid reopening optimism even as the economy&rsquo;s brakes slammed. June could help clarify whether the market anticipated things right or got a bit ahead of itself.</p> <p>A big test for all the recent optimism looms as every state begins the month at least partly reopen. With the most drastic shutdowns over, how long will it take for people to feel comfortable going to a restaurant? What about flying on a plane? Getting a haircut? Economic recovery depends on these everyday decisions made by millions.</p> <p>Judging from how things have gone thus far in May&mdash;when media reports indicated people were generally hesitant to do those things&mdash;it&rsquo;s unclear how quickly life can get back to even a semblance of normalcy. Markets have come a long way on hope, but June could be where hope meets reality.</p> <p>June could also tell us if the early reopening states started to see a spike in the number of coronavirus cases. With some states now three to four weeks into their reopenings, early June is possibly when new cases would begin to percolate if the virus spiked as more people got out and about.</p> <p>Any sign of rising caseloads in states like Florida or Texas might get a fisheye from investors, who&rsquo;ve been bidding up stocks in part on hopes that reopenings can occur without illness increasing. That&rsquo;s probably why you&rsquo;ve seen some airline and cruise stocks get a bid lately. However, if cases spike in early states, it could get people worried about governments closing doors to prevent more spread. That would be a big disappointment to the market and might generate some selling.</p> <p>It&rsquo;s also possible that once the numbers from early states get sifted, they might tell a more positive story. Whatever they end up showing, those data could be more important than any other numbers in determining how June plays out for stocks.</p> <h3>Washington Looms Large as Second Fiscal Package Debated</h3> <p>Another thing we could learn in June is whether fiscal assistance from Washington, which arguably has played a big role since February in propping up the economy, gets augmented or starts to dry up.</p> <p>For example, the $670 billion Paycheck Protection Program expires June 30. This initiative from Congress has helped small and medium sized businesses muddle through. A bipartisan bill is in the works to extend it, The Wall Street Journal recently reported. However, if that effort breaks down, it might be bad news for small business owners and employees who&rsquo;ve been depending on these funds. Ultimately that could have an impact on consumer demand, a potential problem for the market considering consumers are 70% of the economy.</p> <h3>Mark Your Calendar</h3> <h3><img alt="screen_shot_2020-05-27_at_11.22.59_am.png" src="" style="height:766px; width:500px" /></h3> <h3>Webcasts</h3> <p><img alt="screen_shot_2020-05-27_at_11.23.40_am.png" src="" style="height:1117px; width:500px" /></p> <p>As May wound down, the House passed another bill providing fiscal assistance, while the Senate appeared far from eager to follow suit. While this isn&rsquo;t a political column, it&rsquo;s possible investors might react unfavorably ...</p><p><a href= alt=June Market Outlook: Big Test Looms In New Month As States Navigate Reopenings>Full story available on</a></p> DJIA Earnings Government News Regulations SPY TD Ameritrade Commodities Previews Options Treasuries Global Econ #s Economics Markets Trading Ideas General SPY US78462F1030 DJIA News Earnings Government Regulations Commodities Previews Options Treasuries Global Econ #s Economics Markets Trading Ideas General Benzinga Wed, 27 May 2020 15:32:32 +0000 JJ Kinahan 16117879 at LATAM Airlines Files For Bankruptcy Protection <p>Following<a href=""> regional rival Avianca Holdings</a>&#039;s footsteps, LATAM Airlines, the largest carrier in Latin America, is reorganizing and restructuring debt under court-supervised bankruptcy protection in the United States because of the unprecedented downturn in business caused by the coronavirus.</p> <p>Today&#039;s filing for Chapter 11 bankruptcy covers <strong>LATAM Airlines Group</strong> (NYSE: <a class="ticker" href="">LTM</a>), headquartered in Santiago, Chile, as well as its affiliates in Colombia, Peru, Ecuador, and the U.S., but not those in Argentina, Brazil, and Paraguay. </p> <p>LATAM said the restructuring will result in a smaller airline, but it will continue to operate as normal, with no interruption in passenger or cargo service, reservations, or its loyalty program. Downsizing is something all airlines are trying to figure out how to do in the face of a pandemic that has wiped out travel demand.</p> <p>Qatar Airways and the family of chairman Ignacio Cueto, two of the company&#039;s largest shareholders, are fronting $900 million in debtor-in-possession financing. The capital injection will help LATAM, which has $1.3 billion in liquid reserves, pay vendors for services, and puts the two shareholders at the head of the line for claiming assets if the airline is forced to liquidate later.</p> <p>"LATAM entered the COVID-19 pandemic as a healthy and profitable airline group, yet exceptional circumstances have led to a collapse in global demand and has not only brought aviation to a virtual ...</p><p><a href= alt=LATAM Airlines Files For Bankruptcy Protection>Full story available on</a></p> bankruptcy DAL Freight LATAM Latam Airlines LTM News Penny Stocks Global Econ #s DAL US2473617023 LTM US53217R2076 News Penny Stocks Global Econ #s Benzinga Tue, 26 May 2020 14:32:45 +0000 FreightWaves 16106682 at PPP forgiveness Rules Clarified As First Recipients Face Payments' Exhaustion <p>The release late Friday, May 22, of clarified rules on the Paycheck Protection Program (PPP) cleared up some aspects of the program, left some others uncertain but also drove home the point that for the first recipients, the end of the money isn&#039;t that far away.</p> <p>The primary purpose of the clarification issued by the U.S. Small Business Administration (SBA) was to reiterate earlier interim rules about qualifications and payback provisions for the PPP, which was designed to allow companies to help keep employees on the payroll rather than on the unemployment rolls. </p> <p>As the SBA rule released on May 22 notes, the eligible costs covered by PPP were to compensate for eight weeks of payroll expenses. With the first funds disbursed under the PPP on April 3, the 56-day period of payroll protection could be ending later this week for the first batch of recipients.</p> <p>The PPP has been cited by some trucking market observers as keeping capacity on the road that might otherwise have disappeared under the weight of a collapse in demand. </p> <p>In <a href="">various webinars and reports</a>, lawyers, financial advisors and others who have worked with trucking companies to get funds under PPP were advising early on that recipients had better have their records in order to be able to show that when it came time for their eligibility for loan forgiveness to be determined, they would pass the SBA standards. </p> <p>The approval process for loan forgiveness is to ensure that the funds disbursed under PPP were going to meet the key goal of the program – making sure 75% of the money ...</p><p><a href= alt=PPP forgiveness Rules Clarified As First Recipients Face Payments&#039; Exhaustion>Full story available on</a></p> Freight News PPP Scopelitis Garvin Light Hanson & Feary Econ #s Markets News Econ #s Markets Benzinga Tue, 26 May 2020 14:27:45 +0000 FreightWaves 16106684 at The British Pound, Brexit and the Pandemic <p>In the five years since the British parliament passed a law calling for a referendum on whether the UK should remain in the European Union or leave, there have been many intervening moments affecting the global economy, including the Brexit vote itself in 2016 and now the coronavirus pandemic.</p> <p>During this time, one element has remained constant: the British pound (GBP) rallies when the UK moves toward deeper integration with Europe, and falls when the UK moves towards a no-deal Brexit decision. Investors were reminded of this once again in early May as the UK and EU negotiations hit an impasse, with both sides citing a lack of progress on issues ranging from fishing rights to business-competition regulations. Since the negotiations stalled, the pound has slid 3% versus the euro (EUR) and 4.5% versus the US dollar (USD).</p> <p>This is the latest installment in a longstanding theme:</p> <ul> <li>Between the time the UK Parliament called the referendum on June 9, 2015, until the referendum itself on June 23, 2016, GBP slid 4% versus EUR and 3% versus USD.</li> <li>In the months after the referendum, GBP plunged 17% versus EUR and 21% versus USD.</li> <li>Since the referendum, GBP has tended to rally when it looked like a deal was close (+21% versus USD into early 2018 as then Prime Minister Theresa May held negotiations) and tended to sell off when Brexit appears to be headed towards the &ldquo;no-deal&rdquo; scenario (-16% when May&rsquo;s deal was repeatedly defeated) (Figure 1).</li> </ul> <h3><a id="figure-1-gbp-rallies-on-hopes-for-more-integration-with-europe-sells-off-with-less-integration" name="figure-1-gbp-rallies-on-hopes-for-more-integration-with-europe-sells-off-with-less-integration"></a>Figure 1: GBP rallies on hopes for more integration with Europe, sells off with less integration</h3> <p><a href="" rel="lightbox imageLightbox" target="_blank"><img alt="Figure 1: GBP rallies on hopes for more integration with Europe, sells off with less integration" src="" style="height:500px; width:720px" title="Figure 1: GBP rallies on hopes for more integration with Europe, sells off with less integration" /></a></p> <p>Negotiators will meet once more in early June 2020 to decide if it&rsquo;s worth continuing the discussions. The UK government&rsquo;s EU Exit Operations (XO) committee &mdash; also commonly known as the &ldquo;no-deal planning unit&rdquo; is meeting more regularly. The UK government denies that it will extend UK membership in the Common Market beyond December 31, 2020, however, it is possible the economic damage from the pandemic could nudge them to seek some sort of delay, particularly ...</p><p><a href= alt=The British Pound, Brexit and the Pandemic>Full story available on</a></p> Brexit Forex market News Education Global Econ #s Economics General News Education Global Econ #s Economics General Benzinga Fri, 22 May 2020 16:20:23 +0000 CME Group 16095755 at