"So a lot of investors here in the market are starting to worry about a possible disconnect that has developed in the market - very strong market off the March lows.
The S&P 500 up well over 40 percent at one point.
But nevertheless, given the decline we expect to see in earnings, there does seem to be a lit of tension developing within the market in terms of how it is going to resolve that." On the corporate front, McDonald's says it will hire 260,000 restaurant employees in the U.S. this summer as dine-in service returns... Supermarket chain Kroger easily topped quarterly revenue and profit forecasts.
The company benefitted from consumers stocking-up on food and other essentials but warned it doesn't expect that pace of buying to continue.
So it decided not to raise full-year estimates.
The stock fell 3 percent.
Spotify surged to a record high thanks to a 13 percent rally in the stock.
The streaming audio service signed an exclusive content deal with Warner Bros.
Stock strategist Ed Yardeni said the market will rally back in 2022. The stock market has "discounted lots of the good news likely to occur through the end of next year." Yardeni has been bullish about the market. He raised his S&P 500 targets to 3,500 for this year and to 3,800 for 2021. He said expectations for strong profit growth should keep prices rallying for several months Indexes' jumped on Tuesday's with news of a Russian coronavirus vaccine.
On Thursday, Goldman Sachs said the S&P 500 can hit 3,600 if markets price in the bank's "comparatively more optimistic US GDP forecast." The banks analysts say specific market conditions would yield the growth. The economy contracts by only by 5% in 2020. It would have to grow by 6.2% next year. After that real yields will rise sharply to levels of "cyclical optimism" in June 2021.
The S&P 500 ended slightly lower Thursday after briefly trading above its record closing high level for a second day, and the Dow also fell in the wake of a disappointing forecast from Cisco Systems. Fred Katayama reports.
Legendary analyst Byron Wien said the bear market and recession are over. Wien told Bloomberg news the S&P 500 may climb slightly higher but it will not be making any "major strides upward" this year. Byron is the vice chairman of Blackstone Private Wealth Solutions said the S&P 500 is "fully priced." He also applauded US technology companies for their creativity. According to Business Insider Wien said the US should be a manufacturer as well as an innovator to compete globally.
McDonald's CEO Steve Easterbrook was fired for inappropiate relationships with his employees. CNN reports that McDonald's is now suing Easterbrook. In a lawsuit the company alleges Easterbrook lied to the board about the extent of his relationships with employees. McDonald's says he misled investigators about engaging in physical sexual relationships with three employees in the year before his ouster. The company is suing Easterbrook for the amount of his exit package: about $40 million.
Business Insider reports that 6.5 million restaurant workers are still out of a job because of the pandemic. A growing number of major restaurant chains hiring right now. All together, those chains are hiring over 400,000 new employees. On Wednesday, Chipotle announced plans to hire 10,000 new employees. Denny's is looking to hire 10,000 people. McDonald's announced on June 18 that it plans to hire 260,000 new workers in the US over the summer.
CBC reported that McDonald’s ended its Canadian trial of Beyond Meat in April with no plans to continue. According to Business Insider, the plant-based burger dropped as much as 10% because of the news. While Beyond Meat said in an email they were “pleased with the test,” a JPMorgan analyst said usually if a test goes well, it doesn’t end. Beyond Meat CEO Ethan Brown said the plan with McDonald’s hasn’t changed. Despite the recent drop, Beyond Meat is up more than 90% year-to-date.
Kroger is giving its employees access to an at-home COVID-19 testing kit. Employees will video chat with a medical professional while taking the test to ensure proper sample collection. Employees will then send the test sample to a lab via overnight shipping. They will receive results within 24 to 48 hours, according to Business Insider. Kroger is giving its employees access to the free at-home COVID-19 tests starting this week.
The Dow jumped 1%, the S&P 500 inched up and the Nasdaq closed lower Monday as investors extended a rotation into value stocks from heavyweight tech-related names while awaiting news on progress in a U.S. fiscal support bill. Fred Katayama reports.
The Nasdaq jumped more than 1% on Friday, powered by strong earnings from some of the largest U.S. companies, but the Dow and S&P finished with smaller gains as uncertainty about the government's next round of coronavirus aid kept economic worries on the radar. Fred Katayama reports.
The S&P 500 and the Nasdaq finished slightly higher on Friday but the Dow closed with a loss as investors kept an eye on record new coronavirus cases in the U.S. Conway G. Gittens wraps up the trading action.
U.S stocks rose Wednesday and the Nasdaq hit a record closing high, supported by tech shares as early signs of an economic rebound offset concern about rising coronavirus cases across the country. Fred Katayama reports.
Thomson Reuters technical analyst Terence Gabriel sees a sign that market leadership may shift from tech stocks to value stocks. He tells Reuters' Fred Katayama that sign could also indicate that markets overall will soon suffer a period of instability.
The number of Americans seeking unemployment benefits dropped below one million last week for the first time since the start of the COVID-19 pandemic in the United States, likely as the expiration of a $600 weekly jobless supplement discouraged some from filing claims. This report produced by Yahaira Jacquez.
The number of Americans who signed up for first-time jobless benefits remained stuck above 1 million for the 20th straight week, in the clearest signal yet of a stalled economic rebound. Conway G. Gittens dives into the numbers.
Millions of Americans remain unemployed during the coronavirus pandemic. In addition, many are struggling to pay their bills, according to reports at CNN. But despite the devastation, American consumerism has staged a rapid comeback. US retail sales rose 1.2% in July from the previous month, the Commerce Department reported Friday. Initially, Wall Street wasn't impressed with the data. Stocks fell in morning trading after the number fell short of economists' forecasts.
A prominent Wall Street strategist told CNBC the stock market may see a "wartime boom" next year following the US economy's "depression-like collapse." Jim Paulsen is one of a hand full of economists who have predicted US GDP could rebound strongly in the first quarter next year. Paulson said companies have cut down on costs and increase efficiencies to survive the collapse. "A lot of that boom will fall to the bottom line in a bigger way than people currently expect," Paulsen said.
Business Insider reports that banks' and tech giants' earnings largely impressed Wall Street. Bank of America says discount stores are set to post similarly positive results, according to Bank of America. BoA analysts expect the sector's second-quarter figures to hold strong thanks to rising food sales and improvement in general merchandise revenue. Thanks to momentum in higher-profit categories and successful online operations Walmart, Target, and Dollar Tree are in good positions.
Wall Street ended higher after a choppy session on Tuesday, but they were capped by declines in AIG and Microsoft. As Fred Katayama reports, Disney shares shot higher after its adjusted profit handily beat expectations.
Wall Street analysts on Wednesday weighed in on AMC Theatres' historic agreement with Universal Pictures that will allow the studio's movies to be made available on premium video-on-demand after just 17 days of play in cinemas.
Credit: The Hollywood Reporter Duration: 01:27Published