4 August 2020

1) Tailored Brands, who owns Men’s Wearhouse and Jos. A. Bank, has filed for bankruptcy, becoming the latest retailer to succumb to the pandemic. The Covid-19 has wiped out demand for office attire forcing the layoffs of 20% of its workforce and closing up to 500 stores. Lord & Taylor, one of the oldest department stores in America has also filed for bankruptcy. It has started liquidating 19 of its 38 stores. In the first half of 2020, more than 3,600 companies have filed for bankruptcy, with experts predicting that things are only going to get worse. Retail names such as Justice, Ann Taylor, Lane Bryant, Luck Brand, J.C. Penny, Brooks Brothers, Sur La Table, Neiman Marcus, Tuesday Morning, Tailored Brands, GNC and J. Crew have gone into bankruptcy. Such a large number of retailers in trouble can only signal a fundamental change in the American economy.

2) The airline industry in America is facing a round of layoffs in the near future without additional federal aid to save jobs. The airlines received $32 billion dollars in federal payroll support from the CARES Act, with the condition of no layoffs until 30 September, and the anticipation of air traveling increasing by then. But this hasn’t occurred, so as the end of September approaches, layoffs loom. The airline unions have been pushing for an extension in payroll support to preserve the jobs sector of the airlines. American Airlines and United Airlines warn that more than 60,000 employees risk losing heir jobs when the aid terms expire. Other airlines like Alaska, Sprint and Frontier also warn of upcoming layoffs.

3) The owner of 7-Eleven is buying Marathon Petroleum’s Speedway gas stations for $21 billion dollars in cash. This will increase the present 9,800 convenience store chains by another 4,000. Investors were unnerved by the steep price for the deal, with shares falling nearly 9%. Like many other retailers, the chain has also been hit hard by the coronavirus pandemic, with profits down significantly. Another acquisition that finalized is T-Mobile buying Sprint, with the Sprint brand name disappearing from the American business scene.

4) Stock market closings for – 3 AUG 20:

Dow 26,664.40 up 236.08
Nasdaq 10,902.80 up 157.52
S&P 500 3,294.61 up 23.49

10 Year Yield: up at 0.56%

Oil: down at $40.76

6 December 2019

1) Boeing says significant additional regulatory requirements may cause additional delays in returning Boeing’s 737 MAX to commercial service and in turn may cause the company to cut or even halt production. Boeing does not expect 737 MAX order cancellations to have an impact on revenues or earnings citing the size of 737 backorder.

2) Saudi Arabia has just completed the biggest initial public offering in history, which raised $25.6 billion dollars from sales of shares in its giant state owned oil monopoly. Three billion shares were sold at $8.53 a share. Aramco is valued at roughly $1.7 trillion dollars, making it the most valuable publicly traded company in the world. Saudi Arabia plans to wean their economy off an oil only base.

3) The Dollar General retailer chain is opening almost twenty stores a week, while thousands of other retail stores are expected to close this next year. So far, the retailer has opened 925 stores this year, with 1,000 opened by the end of 2020. Presently, they have 16,000 retail outlets, and estimate that three quarters of the U.S. residents live within five miles of a Dollar General store. Revenues continue to increase with sales rising 8.9% to nearly $7 billion dollars over the last three months compared to the same period last year.

4) Stock market closings for – 5 DEC 19:

Dow           27,677.79    up    28.01
Nasdaq        8,570.70    up      4.03
S&P 500       3,117.43    up      4.67

10 Year Yield:    up   at    1.80%

Oil:    up   at    $58.33

10 May 2019

1) Uber raised $8.1 billion in it’s IPO (Initial Public Offering), which was priced near the bottom of the range. Uber sold 180 million shares at $45 each, making its listing among the 10 largest U.S. IPOs. This gives Uber a market value of $75.5 billion dollars, however Uber is deeply unprofitable with $3.04 billion dollars in losses last year.

2) Traders wait to see if President Trump hikes tariffs today. U.S. equity futures were little changed this Thursday while traders wait for the midnight deadline when tariffs are scheduled to take effect. These tariffs will be imposed on $200 billion dollars worth of Chinese goods. Fears are that market reaction will be severe, which either way the tariffs goes.

3) The U.S. trade deficient has widened to $50 billion dollars in March, up 1.5% from February. Economists had anticipated the U.S. trade deficit to fall, but much of the increase came from higher crude imports.

4) 9 MAY 19 Stock market closings:

Dow              25,828.36    down    138.97
Nasdaq           7,910.59    down      32.73
S&P 500          2,870.72    down        8.70

10 Year Yield:    down   at    2.46%

Oil:    down   at    $61.68

TESLA BUYS SOLAR CITY… LARGEST CLEAN POWER ACQUISITION IN USA HISTORY!!!!!!

solar city-tesla

By:  Economic & Finance Report

Tesla Motors purchased Solar City for $2.6 billion dollars. This initially means that there will be combination with the electric car maker and the solar model company, as they fuse their companies together respectfully. Many people believe with many questions if the effort to pair the two companies was a sound decision.

Solar City shares have been declining lately and many believe Musk wanted to save the company from it own ruins, so in order to do this was a buyout situation in which Tesla would buy Solar City and combine the two entities together.  As for if this was a wise decision by CEO Elon Musk, only time will tell about this merger. -SB

HEWLETT PACKARD WILL BE SPLITTING INTO TWO COMPANIES…..COME NOV. 1, 2015

HP hewlett packard

By: Economic & Finance Report

Hewlett  Packard one of the biggest technology and computer companies will soon have divided into two separate entities. The completion is supposed to take place November 1, 2015. The company will be a computer company and the other entity will be its printer company.

HP Enterprise will be raking in somewhere around $58 billion in revenue because of the split, whill HP Inc, will see around the $57 billion mark in revenue sales.

HP board approved of the demerger in the beginning of October and the markets rallied in favor of the demerger of the two divisions (printer unit and pc unit).  HP stocks have been taking a hit the last few years because of certain improprieties  in its business model, so dividing the company maybe suitable for long run performance. -SB

 

ASIAN SHARES RISE HIGHER FOR THE 3RD CONSECUTIVE MONTH…..

asian shares market

By: Economic & Finance Report

 Asian shares heeded higher for the third consecutive month as stocks moved higher for the past couple of days. Bulls seem to be reigning in as prices and stock indexes continue to go to a higher direction. Oil seems to be gaining ground higher as well, the uptrend on stocks and prices is viewed by how well oil can maintain its run upwards.

The Nikkei  posted higher on Wed Feb. 4, 2015, up 1.8% because of banking sector performing unusually well for the day and also very strong company earning reports from Mitsubishi .

Australia’s index also outperformed  climbing 1.2% because of the interest cut instituted by the Federal Reserve Bank of Australia.

-SB