Whilst it may not be a huge deal, we thought it was good to see that the Cellectar Biosciences, Inc. (NASDAQ:CLRB) Chief Business Officer, Jarrod Longcor, recently bought US$75k worth of stock, for US$1.15 per share. While that isn’t the hugest buy, it actually boosted their shareholding by 893%, which is good to see.
Check out our latest analysis for Cellectar Biosciences
Notably, that recent purchase by Jarrod Longcor is the biggest insider purchase of Cellectar Biosciences shares that we’ve seen in the last year. So it’s clear an insider wanted to buy, at around the current price, which is US$1.18. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. Happily, the Cellectar Biosciences insiders decided to buy shares at close to current prices.
In the last twelve months Cellectar Biosciences insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NasdaqCM:CLRB Recent Insider Trading June 9th 2020
Cellectar Biosciences is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that Cellectar Biosciences insiders own about US$35k worth of shares. We might be missing something but that seems like very low insider ownership.
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Cellectar Biosciences stock. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we’ve found that Cellectar Biosciences has 5 warning signs (2 don’t sit too well with us!) that deserve your attention before going any further with your analysis.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
Retail investors buying beaten-up stocks make for some bizarre trading days
In this photo illustration a Robinhood Markets logo seen displayed on a smartphone.
Rafael Henrique | SOPA Images | LightRocket via Getty Images
The interest in beaten-up stocks in energy, travel and leisure is taking some, well, bizarre turns.
I’ve written recently about the importance of retail traders in the recent rally, but the interest among the stay-at-home crowd and trading in those names seems to have reached new heights in the last few days, fueled in part by hopes for a dramatic rebound in the economy.
American Airlines goes from $11 to $22 to $18.55–in three days, on heavy volume.
Delta goes from $27 to $36 to $34.17 in five days, also on heavy volume
Hertz goes from $0.88 to $6.00 to $4.18 in four days–on volume four times normal.
Carnival Corp. goes from $17 to $25 to $23.04, also in three days.
While much of this can simply be attributed to the reopening story going well, it’s not lost that retail speculators seem to be very active in these names. The top 12 most popular stocks owned by Robinhood investors include three airlines —American, Delta, United — and two cruise companies (Carnival and Norwegian), and Microsoft and Apple.
Trying to find a bottom in energy stocks has also been a fixation for retail investors for months.
But even by these standards, the trading in Chesapeake Energy has been bizarre. The stock closed at $14.05 on Thursday, then ended trading on Monday at $69.92, a move of nearly 400% in two days, on no news. Other beaten up energy names also rallied.
Before the open today, a Bloomberg story, noting the heavy debt levels of the company, said that the company was preparing for a bankruptcy filing. With the stock trading as low as $37, the NYSE halted trading in the stock prior to the open.
While the halt was labelled as “news dissemination,” the company does not appear to have made any statements. The stock was reopened at 12:37 p.m. ET, and was halted numerous times throughout the day for volatility before closing at $23.75 on heavy volume.
An NYSE official declined to comment on the NYSE’s action, or to confirm that discussions had taken place with Chesapeake about the volatile trading. Chesapeake also declined to comment.
While unusual, the NYSE’s “Listed Company Manual” permits the exchange to halt trading in a stock when officials believe it is necessary to ask for more information on material news, the issuer’s compliance with exchange continued listing requirements, or any other information necessary to protect investors.
It all caps a bizarre few days of interest in these volatile stocks.
JJ Kinahan, who has watched retail trading for many years from his perch as chief market strategist at TD Ameritrade, said it was no surprise that retail investors have been more actively trading.
“People are at home and have had plenty of time to educate themselves about trading,” he said, noting that viewing of Ameritrade’s educational material went up three times normal viewing in March and April.
Why the involvement in beaten-up sectors? “Some of the reason is that they are just affordable — not cheap, but people who don’t have a lot of money can afford them,” he said. But the heavy retail involvement in airlines made sense on a more fundamental level: “Remember the Fed came in and backstopped them, and investors have taken advantage of that.”
Kinahan is amused at all the attention the “average trader” has been getting recently. “We complained forever that the average person was not getting involved in the market. Now that the average person is getting involved, everyone is complaining about it.”
Author: Bob Pisani
Animal Drugs Market Share, Analysis to reach around US $41 billion by 2025
Animal Drugs Market Size, Share is expected to exceed USD 41 billion by 2025. Increasing introduction of new and advanced animal drugs will drive the animal drugs market growth over the analysis timeframe.
Request a sample Report of Animal Drugs Market at@ https://www.marketstudyreport.com/request-a-sample/2419633/?utm_source=marketwatch.com&utm_medium=ADS
Some major findings of the animal drugs market report include:
– Development of new vaccines and medications will propel the market growth
– Increasing number of online veterinary pharmacies is estimated to escalate the availability of online catalogs for prescription drugs
– Investment in the research and development for novel drug development is anticipated to boost the growth prospects of the animal drugs market
– North America animal drugs market dominated the overall market and is projected to foresee similar trend in the upcoming years owing to strong footprint of key pharma firms coupled with considerable investments in research activities
– Some of the notable industry players operating in the animal drugs market are Elanco, Merck, Bayer, Boehringer Ingelheim, Dechra Pharmaceuticals, Zoetis, Ceva Sante Animale and Virbac
Growing focus of various companies on development of effective healthcare products for livestock and companion animals is expected to drive market growth. The market is witnessing strong growth due to the incorporation of new formulations, leading to launch of new products. Moreover, firms are also engaged in creating awareness regarding the importance of animal drugs, that will further increase the adoption of animal drugs in the market. In May 2019, Merck Animal Health launched BRAVECTO Cares, an educational campaign that highlights the role service that dogs play and the importance of keeping them healthy by protecting them from ticks and fleas. Furthermore, increasing investment in R&D activities will boost industry growth in the coming years.
Animal drugs market based on product is segmented as drugs, vaccines and medicated feed additives. Drugs segment was valued at more than USD 17.7 billion in 2018 and is expected to witness substantial growth over the forecast period. Generally, the U.S. FDA regulates veterinary and human drugs, biologic products, and medical devices to assure their safety and effectiveness. Furthermore, to protect the health of consumers of foodstuffs of animal origin, animal drugs need to be registered by governmental agencies. Thus, as animal drugs are necessary to control and prevent diseases in livestock and companion animals, the market will witness rapid adoption over the upcoming years.
North America animal drugs market registered over 37.0% revenue share in 2018. Considerable revenue share can be attributed to increasing focus of companies on novel drug development for the treatment of various chronic diseases in animals. Also, a strong foothold of veterinary hospitals, clinics, and drug stores will further augment the regional growth. Moreover, rising adoption of pets coupled with growing concerns of their owners regarding the pet’s health are few of the significant factors propelling business growth in the region.
Animal drugs market based on animal type is segmented as livestock animals and companion animals. Livestock animal segment is expected to witness more than 4.5% growth throughout the analysis timeframe. Animal healthcare is yet not sufficiently developed in the middle-income countries that can keep livestock animals healthy without veterinary drugs. In the U.S. and Europe, substantial advancements have been made towards the effective use of animal drugs. Improvement in drugs for livestock animals have shown its enhanced applicability to address numerous health problems, thereby stimulating the segment growth.
Animal drugs market based on distribution channel is segmented as veterinary hospitals, veterinary clinics, pharmacy and drug stores, and e-commerce. Veterinary hospitals segment was valued over USD 11.2 billion in 2018 and is anticipated to significantly grow over the analysis timeframe. Veterinary hospitals provide several insurance plans with maximum coverage schemes for better treatment of animals. Also, factors like corrective health treatments, early detection of disease, quality treatment, affordable and preventive healthcare favors the segmental growth. furthermore, expansion of veterinary hospitals in emerging economies will escalate the distribution of animal drugs thorough veterinary hospitals.
Major companies have undertaken organic and inorganic strategies such as collaborations, partnerships to expand its geographical reach as well as strengthen market position. For instance, in June 2018, Zoetis and Regeneron signed a five-year collaboration agreement in order to develop monoclonal antibody therapeutics by Regeneron for animals and discover novel veterinary therapies. The collaboration will strengthen the pipeline portfolio of Regeneron and assist Zoetis through grant of license for Regeneron’s antibody technology.
Animal drugs market based on route of administration is segmented as oral, injectable, topical and others. Injectable segment was valued over USD 13.0 billion in 2018 and is anticipated to witness lucrative growth over the forecast timeframe. Injectable route of administration of animal drugs is considered as the most efficient means of delivering therapy to animals as it eliminates the need for solute absorption. Injectable route directly introduces the drug into the systemic circulation. Substances are directly absorbed into the blood vessels on either an acute or chronic basis, thus favoring the segmental growth.
For More Details on this report@ https://www.marketstudyreport.com/reports/animal-drugs-market?utm_source=marketwatch.com&utm_medium=ADS
Global HIV Diagnostics Market to Surpass USD 5 Billion By 2024
HIV diagnostics market is expected to expand owing to increased pervasiveness of HIV in consort with favorable regulatory scenario as well as reimbursement policies associated with HIV diagnostic devices. Easy accessibility to HIV tests and increasing utilization of HIV POCT (point of care tests) are also stimulating the industry outlook.
For More Details on this report@ https://www.marketstudyreport.com/news/hiv-diagnostics-market-size?utm_source=marketwatch.com&utm_medium=ADS
Global Furniture Market to Witness Considerable Growth During 2018-2024
Rapid urbanization along with rising disposable incomes, particularly in emerging economies, and increasing investment in residential spaces are driving the growth of global furniture market. Moreover, material & technological advancements with improved durability and innovative storage solutions are augmenting the industry growth.
For More Details on this report@ https://www.marketstudyreport.com/news/furniture-market-growth?utm_source=marketwatch.com&utm_medium=ADS
Market Study Report, LLC. is a hub for market intelligence products and services.
We streamline the purchase of your market research reports and services through a single integrated platform by bringing all the major publishers and their services at one place.
Our customers partner with Market Study Report, LLC. to ease their search and evaluation of market intelligence products and services and in turn focus on their company’s core activities.
If you are looking for research reports on global or regional markets, competitive information, emerging markets and trends or just looking to stay on top of the curve then Market Study Report, LLC. is the platform that can help you in achieving any of these objectives.
Market Study Report LLC
4 North Main Street,
Selbyville, Delaware 19975
US Toll Free: 1-866-764-2150
Is there a problem with this press release? Contact the source provider Comtex at email@example.com. You can also contact MarketWatch Customer Service via our Customer Center.
Stock market live Tuesday: Dow drops 300, Nasdaq briefly tops 10,000, S&P negative for the year
U.S. equities put their recent comeback rally on hold on Tuesday, dragging down the Dow Jones Industrial Average and S&P 500. Investors ditched reopening plays for the technology darlings, bringing the Nasdaq Composite to a new record high. The U.S. Federal Reserve started its two-day monetary policy meeting.
Here’s what happened:
- The Nasdaq Composite closed up 0.29% for its seventh straight positive day in eight, hitting a new intraday and closing high
- The Nasdaq crossed 10,000 for the first time ever at its high, hitting 10,002.5
- Apple and Amazon had double-digit point contributions, with each stock rising to a new all-time high
- The Nasdaq has rallied 50.1% from its 52-week low of 6,631.42
- The most positive sector was tech, which gained 0.48%. – Francolla
The Dow Jones Industrial Average fell 300 points on Tuesday, snapping a six-day winning streak, as big losses in Boeing and Walgreens dragged down the 30-stock average. The S&P 500 dipped 0.78% after turning positive briefly for the year in the previous session. The tech-heavy Nasdaq Composite outperformed, rising 0.3% to a new record close and briefly breaking above 10,000 for the first time. –Li
Dow Industrials were set to snap their six-day winning streak on Tuesday as a pause to the “reopening rally” left Boeing, Caterpillar and IBM all down at least 2.5% each. The S&P 500 followed suit with the broad index down 0.5% with an hour left in the session. The Nasdaq Composite, the lone index to trade higher, gained 0.5% as popular names like Amazon, Apple and Facebook rallied. The Nasdaq clinched a record high north of 10,000 earlier in the day but had since moved off that level. — Franck
Longtime hedge fund manager Paul Tudor Jones said Tuesday that he believes the next biggest threat to the U.S. economy is a wave of inflation sparked by supportive monetary and fiscal policy. He added that the Federal Reserve will be hard-pressed to keep prices in check given the outsized debt load of the U.S. government; to hike interest rates could make the debt load even more expensive.”We just had the shortest peak to trough recession in history, we just had the shortest bear market in stocks in history, we just had the greatest recovery in history … I think there’s a real case to be made that the real threat down the road, particularly in the United States … is inflation,” Jones told the Economic Club of New York via videoconference.— Franck
The tech-heavy Nasdaq Composite rose 0.7% to above 10,000 for the first time ever in afternoon trading. The rally to a new record was fueled by solid gains in big internet companies. Shares of Apple and Amazon both jumped more than 3% to new all-time highs, while Netflix and Facebook gained 2.9% and 3.4%, respectively. —Li
Shares of Cloudera jumped sharply, leading to a brief halt in trading, after Bloomberg News reported that the company has received interest about a possible takeover. The company has talked to private equity firms about a potential deal, according to the report. The stock has now risen about 18% for the day. — Pound
Roughly four stocks traded lower for every advancer at the New York Stock Exchange as Wall Street’s blistering rally to kick off June took a breather. Overall, 2,291 NYSE-listed names declined while 574 rose. Those moves came as traders rotated out of stocks that benefit from the economy reopening fell broadly while major tech shares climbed. —Imbert
Shares of online used car seller Vroom more than doubled in its first day of trading after its initial public offering on Tuesday. The stock surged more than 115% to above $46 a share in afternoon trading. Vroom priced its IPO at $22 per share, which came in above its price range of $18 to $20 per share. –Li
Bloomberg News reported this morning that Apple may begin using its own chips instead of Intel’s in its Mac computers, but Deutsche Bank said it’s unlikely. “Overall, we continue to monitor this shift and doubt that the entire Mac notebook line shifts to ARM in 2021 as the performance envelope is unlikely to be broad enough initially to support such a shift,” analyst Jeriel Ong said. ARM is the design architecture in which Apple bases its chips on. “With the profit improvement in the Mac line-up high (as much as 40-60% savings from a shift to ARM), we raise our P/T to $350,” he said. — Bloom
The Dow and S&P 500 were under pressure on Tuesday as stocks benefiting from the economic reopening fell broadly. The Dow slid 270 points, or about 1%, while the S&P 500 dropped 0.8%. The Nasdaq Composite, meanwhile, eked out a small gain as major tech names such as Facebook, Amazon, Apple, Netflix and Alphabet all rose. —Imbert
Shares of Boeing dropped more than 4% around midday trading on Tuesday, becoming the biggest laggard in the Dow Jones Industrial Average. The decline in the plane maker knocked down about 72 points in the 30-stock average, which was down 270 points. Boeing’s stock fell after the company said its aircraft cancellations in May continued to outpace new business as the coronavirus pandemic roils the air travel industry. —Li
Investors flocked to big technology stocks once again with Amazon, Netflix and Facebook all gaining at least 2% on Tuesday, limiting the losses in the broader market. Google parent Alphabet rose 1%, while Apple also climbed 1.7%. The so-called FAANG stocks had recently lagged behind as rotation out of internet stay-at-home bets went underway, but investors returned to the safety of megacap growth stocks on Tuesday as the market comeback rally took a pause. The gains in these big tech names pushed the Nasdaq Composite into positive territory in morning trading, marking the only major U.S. benchmark in the green. The tech-heavy index hit a new all-time high on Tuesday after closing on a record in the previous session. –Li
On “Squawk on the Street,” Jim Cramer urged investors to avoid the volatile stocks that are being discussed by speculators on social media. “Please be careful when you see a reference in Twitter which says ‘we’re taking up Hertz’ or ‘get on board the Chesapeake train,'” Cramer said. “Because you’re not going to be the one that makes the big money. You’re likely going to be the one that loses the big money.” —Pound
Certain companies with huge gains on Monday are tanking on Tuesday, as well as the opposite moves. Transocean, which gained 50% on Monday, is down 24.8% on Tuesday. Cosmetic company Coty gained over 22% on Monday but is down 12.6% Tuesday. Royal Caribbean gained over 8% on Monday but and is down almost 9% Tuesday. Michaels gained 58.6% on Monday for its best day ever and is down almost 19% Tuesday. — Francolla
Shares of Apple and Amazon hit fresh all-time highs as traders sold some of their holdings in stocks benefiting from the broader economic reopening. Apple traded 0.9% higher along with Amazon shares. Those gains put Apple up more than 14% for 2020 and Amazon up 37.9% in that time. —Imbert
- Wells Fargo raised its price target on Amazon to $3,000 from $2,725.
- Barclays upgraded Zynga to overweight from equal weight.
- Bank of America raised its price target on Amazon to $3,000 from $2,600.
- Goldman Sachs raised its price target on Facebook to $250 from $220.
- BTIG initiated The RealReal as buy.
- Wells Fargo upgraded eBay to equal weight from underweight.
- Bernstein downgraded Biogen to market perform from outperform.
- RBC downgraded KB Home to sector perform from outperform.
- Bank of America upgraded Occidental Petroleum to buy from neutral and downgraded Chevron to neutral from buy.
- Guggenheim downgraded T-Mobile to neutral from buy.
- Oppenheimer upgraded Dick’s Sporting Goods to outperform from perform.
- Morgan Stanley initiated Match Group as overweight.
U.S. equities fell at the opening bell on Tuesday, as investors halted their enthusiasm about the economy reopening. The Dow Jones Industrial Average fell about 340 points, or 1.3%. The S&P 500 ticked 1.12% lower and the Nasdaq Composite fell 0.6%. The S&P 500 went slightly negative for the year. —Fitzgerald
Bank of America’s Stephen Suttmeier pointed to several factors showing the secular bull market “remains alive” as the S&P 500 is within reach of upside projection levels above 3,200. “While fear may still rule the day, the S&P 500 appears to be on healthier footing today than before the 2020 correction as leadership broadens and indicators, rotation and cross-asset price action confirm the rally’s legitimacy,” said Suttmeier, the bank’s technical research strategist. —Imbert
Bank of America Securities clients sold $3.2 billion in U.S. equities last week while the S&P 500 gained nearly 5%. The clients bought ETFs and sold single stocks for the fifth straight week. “Selling was broad-based across client groups, where hedge funds and retail clients have been sellers for the last eight and five consecutive weeks, respectively,” Bank of America equity and quant strategist Jill Carey Hall said in a note. “Financials led the outflows last week with its second-largest selling in our data history since 2008 — consistent with the record low investor positioning.” — Fitzgerald
The Federal Open Market Committee begins its two-day meeting Tuesday with markets watching for news on several fronts. The Fed’s policymaking body is unlikely to make any major policy changes, with its benchmark rate near zero and the asset purchasing programs continuing. However, investors will be watching for thoughts on possibly implementing yield caps and strengthening forward guidance on how long the Fed will keep current policies in place. The meeting concludes Wednesday with the release of a policy statement and the quarterly summary of economic projections, then Chairman Jerome Powell’s news conference. – Cox
Shares of retailer Macy’s soared more than 11% in premarket trading after the company reported better-than-expected preliminary earnings. The department store reported a loss of $2.03 per share, while Wall Street analysts were expecting a loss of $2.34 per share, according to Refinitiv. Revenue also beat estimates coming in at $3.02 billion. Analysts forecast $3.01 billion. Shares of the retailer are down about 43% in 2020. — Fitzgerald
Investors shifted away from stocks that are expected to benefit from the economy reopening on Tuesday. Airlines and cruise lines have been on a tear as market participants bet on a return in travel demand; however, the equities fell in premarket trading on Tuesday. American Airlines fell 7% before the bell. Delta Air Lines and Alaska Air Group both dropped more than 4%. United Airlines and Southwest both fell about 3.9%.
Cruise operators also ticked lower in premarket trading on Tuesday. Carnival Corp. and Royal Caribbean fell more than 4% and Norwegian Cruise Lines dropped about 3.8%. —Fitzgerald
U.S. equity futures fell on Tuesday as investors pulled back on riskier assets after a major comeback for stocks from the coronavirus market rout. The Dow Jones Industrial Average futures fell 320 points and the S&P 500 futures fell about 26 points. Nasdaq Composite futures indicated a drop of 41 points at the open. Reopening plays — airlines, cruise lines and retailers — ticked lower in premarket trading.
Investors are awaiting the U.S. Federal Reserve’s two-day monetary policy meeting starting later in the day on Tuesday.
On Monday, all three major averages registered sharp gains. Most notably, the S&P 500 went positive for the year. The Nasdaq Composite notched a new record high. The Dow Jones Industrial Average jumped more than 450 points.
— with reporting from CNBC’s Thomas Franck, Jeff Cox, Jesse Pound, Pippa Stevens and Michael Bloom.
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.
Author: Maggie Fitzgerald,Yun Li,Fred Imbert
Oil prices recover losses to settle higher on bets the market may soon ‘find balance’
Crude oil futures gave up earlier losses on Tuesday to finish higher, with expectations for a rebound in energy demand among the reasons for the late day turnaround.
Prices had spent most of the session trading lower on the back of worries about compliance with a newly-extended pact between the Organization of the Petroleum Exporting Countries and its allies to cut production by nearly 10 million barrels. In addition, Gulf producers may end their voluntary extra output cuts at the end of June and U.S. producers may reverse output cuts as prices rise.
Oil prices, however, turned positive after a “trifecta of headlines supported the argument that the oil market will find balance soon,” Edward Moya, senior market analyst at Oanda, told MarketWatch.
In an update Tuesday, the Bureau of Safety and Environmental Enforcement reported that 31% of U.S. Gulf of Mexico oil production remained offline.
That’s only a slight improvement from 34% a day earlier, “suggesting production is not coming back immediately from the region hit by Tropical Storm Cristobal,” said Moya.
Also, Nigeria is reportedly struggling to sell their crude, “which could help them refrain from excessively cheating with their production cut promises with the OPEC+ accord,” he said.
The Energy Information Administration’s Short-Term Energy Outlook report Tuesday, meanwhile, “confirmed the energy market’s view that global demand will fall to the low 80-million [barrel per day] level this quarter before rebounding back above 90-million next year,” he said.
OPEC+ reached an agreement over the weekend to extend a global production cut of 9.7 million barrels per day by one month, through July
Saudi Arabia, Kuwait and the United Arab Emirates, however, are not intending to extend the extra cuts of 1.18 million barrels per day that they are currently making on top of the OPEC+ target, Reuters reported.
The Saudis had cut an additional amount of production, “but they announced that they would no longer produce below their quota,” said James Williams, energy economist at WTRG Economics.
OPEC members have not yet fully complied with their current output cut pledge. A Reuters survey pegged the member compliance rate at 74% in May.
On top of that, concerns persist that other non-OPEC members will drive production higher, including North American shale-oil producers.
Given the recent climb in oil prices “U.S. producers which shut in wells or cut back on production will restore most of that production,” Williams told MarketWatch.
The EIA on Tuesday raised its 2020 forecasts for West Texas Intermediate to $35.14, up nearly 17% from its May forecast. It also said Brent crude oil prices are likely to average $38.02 this year, up 11.4% from the previous view.
The change in the Brent forecast is “largely due to higher than expected crude oil prices in May, driven by a combination of additional OPEC+ production cuts, declining U.S. production, and rising demand related to reductions in COVID-19 stay-at-home orders,” said Dr. Linda Capuano, EIA administrator, in a statement.
The EIA also lowered its expectations for 2020 U.S. crude-oil production by 1% to 11.56 million barrels per day. Global demand for petroleum and liquid fuels, meanwhile, will likely average 83.8 million barrels per day in the second quarter of this year, with total consumption averaging 92.5 million barrels a day in 2020, down 8.3 million barrels a day from 2019, the EIA said.
Meanwhile, Reuters reported Tuesday that Libya’s National Oil Corporation declared force majeure on exports from its Sharara oilfield after an armed group shut the field’s production just days after it had reopened.
Looking ahead, the EIA will release its weekly U.S. petroleum supply data early Wednesday, after the release of the American Petroleum Institute’s figures late Tuesday.
On average, analysts polled by S&P Global Platts expect the EIA to report a decline of 3.2 million barrels for the week ended June 5. They also forecast inventory increases of 300,000 barrels for gasoline and 1.5 million barrels for distillates.
The EIA on Tuesday lowered its expectations for natural gas prices by 4.6% to $2.04 this year, but raised its 2021 forecast by 6.7% to $3.08.
Author: Myra P. Saefong, Mark DeCambre
Wall Street Retreats After Monday’s Rally: Live Updates
The S&P 500 closed almost 1 percent lower after a rally on Monday had wiped out its losses in 2020.
Stocks fell on Tuesday, pulling back after a string of gains that had lifted Wall Street by 6 percent this month.
The S&P 500 closed down less than 1 percent. Stocks in Britain, Germany and France were nearly 2 percent lower after a mostly positive day in Asia.
The S&P 500 erased its losses for this year on Monday. Investors have taken heart in signs that the global economy is on the mend, particularly in China, Europe and the United States. They have also been cheered by government and central bank efforts to use money to fight the global freeze.
Stocks that had fared the best in the rally, like those of airlines and cruise companies, pulled back on Tuesday. Shares of Delta Air Lines fell about 8 percent, and American Airlines was down about 9 percent, while the cruise line operator Carnival Corporation was down more than 7 percent.
Tuesday brought reminders that the global situation remained tenuous. Tensions on the Korean Peninsula rose, while prospects for a quick batch of new stimulus spending in the United States looked uncertain.
In Germany, new data showed exports had plunged in April by 24 percent, much more than expected, which cast doubt over how quickly Europe’s largest economy could bounce back.
And investors are wary of a second wave of the coronavirus outbreak that could force economic activity to halt once more. Infections are still rising in many U.S. states and public health officials are concerned that the nationwide protests over police brutality may lead to new cases of the virus.
Shares of Chesapeake Energy, a pioneer in extracting natural gas from shale rock that came to be known for an illegal scheme to suppress the price of oil and gas leases, went on a wild ride on Tuesday amid reports that it was preparing a bankruptcy filing.
Trading was halted for more than three hours in the morning. Then when buying and selling resumed, the trading was quickly interrupted again by circuit breakers. The company’s shares closed just below $24 for a loss of about 66 percent for the day.
Chesapeake’s successes at using hydraulic fracturing to produce gas helped convert the United States from a natural gas importer into a major global exporter. But the company overextended itself by amassing a large debt and has been struggling to survive over the last decade. It is the latest of more than a dozen heavily indebted oil and gas businesses to seek bankruptcy protection since the coronavirus pandemic took hold and Saudi Arabia and Russia flooded the global market with oil this spring.
The company hired advisers to explore bankruptcy in recent months after reporting a loss of $8.3 billion in the first quarter, and said it had just $82 million in cash at the end of March. Chesapeake was forced to write down the value of oil and gas assets by roughly $8.5 billion this year. With $9.5 billion in debts at the end of last year, it has bond payments of $192 millions that are due in August.
AMC Theaters, the world’s largest cineplex operator, announced on Tuesday that “almost all” of its locations in the United States and Britain would reopen next month. Over all, theaters in 90 percent of overseas markets will be running again by mid-July, according to the National Association of Theater Owners, a trade organization for movie exhibitors in 98 countries.
In just three weeks, Hollywood is scheduled to restart its supply pipeline of new films. “Unhinged,” a $33 million Russell Crowe thriller, will arrive in theaters on July 1, followed in mid-July by Christopher Nolan’s “Tenet,” a $200 million-plus mind bender.
Theater owners are desperate to start selling tickets again. AMC, based in Leawood, Kan., lost $2.18 billion in the first quarter, compared with a loss of $130 million a year earlier. Revenue totaled $942 million, a 22 percent decline. As of April 30, AMC had $718 million in cash, enough to stave off bankruptcy through the end of the year, even if theaters remain closed.
The question, however, is whether moviegoers — even while watching movies in well-sanitized theaters with limited capacity — will feel safe from the coronavirus, the spread of which rose to a record high worldwide on Sunday, as measured by new cases.
After months of being embattled over its response to the coronavirus, Amazon is working to convince the public that its workplaces — specifically, the warehouses where it stores everything from toys to hand sanitizer — are safe during the pandemic.
The giant internet retailer has started running television ads that show that its warehouse and delivery employees have masks and other protective gear. It has pushed out segments to local news stations touting its safety improvements. It has asked journalists to visit its warehouses to see for themselves.
Amazon is spreading its safety message after a period that Jeff Bezos, the company’s chief executive, has called “the hardest time we’ve ever faced.” As the coronavirus swept through the United States, Amazon struggled to balance a surge of orders with the health concerns of the one million workers and contractors at its warehouses and delivery operations.
Even as apps like Grubhub have cast themselves as economic saviors for restaurants in the pandemic, their fees have become an increasing source of difficulty for the establishments.
Complaints about the fees that the apps charge to both restaurants and consumers are longstanding, but the issue has become heightened as many restaurants have shut down in-room dining. Even as they begin reopening, delivery is likely to remain a bigger part of their business than before the pandemic.
Several restaurants have also publicly worried that if Uber’s talks to acquire Grubhub succeed, small restaurant owners will have even less power in pushing back against the fees.
Restaurant owners are concerned about more than the apps’ fees. In 18 interviews with restaurant owners and industry consultants, plus in lawsuits and social media posts, many said Grubhub, DoorDash and Uber Eats also engaged in deceptive practices like setting up websites with inaccurate information for the restaurants, all without asking permission.
Shares of Tailored Brands, the owner of Men’s Wearhouse and Jos. A. Bank, plummeted 25 percent so far this week as the company reportedly considers filing for Chapter 11 bankruptcy protection.
The company, which has more than $1 billion in debt, may turn to a Chapter 11 filing in part so it can close some of its stores, Bloomberg News reported on Monday, citing unnamed people with knowledge of the matter. It had roughly 1,450 stores in the United States and Canada as of Feb. 2.
“As a matter of company policy, we don’t comment on market rumors or speculation,” Tailored Brands said in an email statement.
The company, which has seen its sales decline for the past few years, is being hit especially hard by the coronavirus pandemic as shoppers work from home and special occasions like proms and weddings are either canceled or postponed. About 13 percent of the company’s sales last year came from rentals, while alterations and other services made up 5 percent of the business. Like other retailers, it has also been dealing with temporary store closures.
The French government announced an enormous financial support program for its flagship aviation industry on Tuesday as global travel restrictions from the coronavirus slashed passenger flights and orders for new planes, putting tens of thousands of jobs at risk.
The package, worth 15 billion euros (almost $17 billion), includes some previously announced measures, as well as aid for Air France, Airbus and major French parts suppliers through direct government investment, subsidies, loans and loan guarantees. It also includes a special fund jointly financed by the government, Airbus and other big manufacturers to support small suppliers.
In exchange for the support, companies will be required to invest in more low-emission aircraft, powered by electricity, hydrogen and other means, as the government capitalizes on the opportunity to make the French aviation industry the “cleanest in the world.”
“We are declaring a state of emergency to save our aeronautical industry to allow it to be more competitive,” Bruno Le Maire, the finance minister, said at a news briefing with France’s defense and environment ministers. He said the plan would allow France to set new global standards for low-carbon aircraft, with €1.5 billion earmarked over the next three years on the research and development of a carbon-neutral aircraft by 2035.
The aeronautical sector is one of the biggest employers in France, providing 300,000 direct or indirect jobs in manufacturing, research and development. A third of those would have been wiped out if the government hadn’t stepped in, said Mr. LeMaire, adding that preserving jobs was the top priority.
Faced with a crisis unlike any other in recent memory, central bankers have gone beyond what the monetary authorities did even in the darkest days of the 2008 global financial crisis.
Central bankers entered the crisis with low interest rates, leaving them less room to goose growth using their tried-and-true tools. Because they went into the crisis with limited ammunition to stoke growth, experimentation may prove even more crucial in the months and years ahead as the world embarks on what could be a long slog back to prosperity.
Germany, France, the United States and many other countries have poured trillions of dollars into their economies through tax cuts, cheap credit and cash handouts. Monetary policy and fiscal policy can act as complements during a crisis to get economies back on track.
But appetite for further fiscal action is eroding in some places, including the United States. And the next stage — the recovery — could pose a fresh test for the world’s central banks, forcing them to get more creative as they try to keep pandemic aftershocks from permanently scarring growth potential. The Fed and its global counterparts are shifting from crisis-fighting mode, when they worked to keep credit markets open, to a period when they will have to stoke lending and spending to get economies churning again.
“It will be a potential concern as the economy turns around, if that turnaround is less than ideal,” said Donald Kohn, a former Fed vice chairman now at the Brookings Institution. “Central banks will have to work hard at supplying the extra push, the extra zip that they’d want to achieve.”
The Hong Kong government is bailing out Cathay Pacific Airways, its beleaguered flag carrier, by injecting nearly $4 billion and taking a direct stake in its operations.
Like airlines around the world, Cathay Pacific was shaken to its core as its passenger traffic shrank to near zero amid the coronavirus pandemic. The airline said last month that its year-to-date losses totaled $580 million. So far this year, it has asked its employees to take unpaid leave, announced cuts to executive pay and grounded half of its fleet.
Cathay has also been hit by a year of protests, in which citizens have expressed fear over Beijing’s encroaching grip over the semiautonomous territory, and the airline’s shares lost 20 percent of their value.
In a filing to Hong Kong’s stock exchange on Tuesday, Cathay said the Hong Kong government would inject nearly $4 billion into it through loans and other means. As part of the terms of the bailout, the government will take an undisclosed stake in the carrier, a move that gives it a direct say in its operations through two “observer” boardroom seats.
Cathay’s announcement came on the same day that hundreds of protesters gathered in Hong Kong shopping malls to commemorate the one-year anniversary of a protest march that became the start of the city’s biggest political crisis in decades.
Ahead of the announcement, rumors had swirled around a possible takeover by Air China, a Chinese state-owned enterprise. That stoked fears about Beijing’s encroachment not only in the city’s politics but its finance sector.
3M filed a trademark infringement lawsuit in federal court in California on Monday, alleging price-gouging and bait-and-switch sales of 3M respirators from third-party Amazon sellers. The complaint claims that three third-party sellers — all believed to be owned and operated by a California resident named Mao Yu — charged roughly 18 times the $1.27 list price for 3M-branded N95 respirators. Buyers spent more than $350,000 for such masks, and sometimes received fewer masks than promised or masks that were damaged or tampered with, according to the suit
Airlines are expected to lose more than $84 billion this year and nearly $16 billion next year, according to the International Air Transport Association, a global industry group. “Financially, 2020 will go down as the worst year in the history of aviation,” Alexandre de Juniac, the group’s chief executive, said.
Britain’s power system has been free of electricity generated by coal, the fuel that produces the highest carbon-dioxide emissions, since April 9, according to National Grid ESO, which operates the network. The system’s record-breaking coal-free streak, now reaching two months, is a result of the economic lockdown designed to curb transmission of the virus.
Reporting was contributed by Nathaniel Popper, Liz Alderman, Brooks Barnes, Sapna Maheshwari, Niraj Chokshi, Stanley Reed, Jason Karaian, Peter Eavis, Jack Ewing, Kevin Granville, Mohammed Hadi, Jeanna Smialek and Carlos Tejada.