United cuts, Market rebounds
03-05-2020, 04:17 AM
#1
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United cuts, Market rebounds
As we know, United cut 10% domestic and 20% international. What about American, Delta and Southwest?
Bonuses and pay raises temporarily halted, but they get that back once they take it from you.
Are they cutting stock buybacks and dividend payouts? Of course not.
Give up scope, and it comes back as United Express.
Hold the line on scope. Anything you give up goes into their pockets.
Pivot
**********
From Zacks:
Stocks soared yesterday, erasing Tuesday's losses, and adding to the sharp rebound we've seen since Friday's lows were put in.
And after yesterday's rally, the major indexes are no longer in correction territory.
At its lowest point, the S&P had corrected by more than -15.66%. (A correction is defined as a pullback between -10% to just under -20%.)
As of yesterday's close, the S&P is now 'only' down by -7.56%.
It's too early to tell if we'll see stocks cross back below that -10% threshold or not, let alone retest the lows. But either way, the rally we've seen so far has been quite impressive.
The coronavirus, however, remains a real concern globally. Both from a health perspective and from an economic perspective.
But the outbreak appears to have peaked in China. And while their recent economic numbers look dismal (they reported record low manufacturing numbers earlier in the week, and record low service numbers just yesterday), we're seeing signs that the country is beginning to get back to work.
And gladly, the impact to the U.S. so far, from a public health standpoint and from an economic standpoint, has been mild.
Economically speaking, that was underscored by yesterday's MBA Mortgage Applications report which showed the composite index up 15.1% with refi's soaring 26%. (And after the Fed's rate cut yesterday, I would expect those numbers to jump again next week.)
Same with the ISM Non-Manufacturing Index which jumped to 57.3 vs. last month's 55.5 and views for 55.0. That's in sharp contrast to China's record low reading.
We also saw better than expected job growth as estimated by the ADP Employment Report. They were expecting 165,000 new private payroll jobs, but instead came out with 183,000.
That's often looked at as a precursor to the official Employment Situation Report that comes out two days later on Friday. At the moment, the consensus is calling for 177K new jobs (155K from the private sector and 22K from the public). But if yesterday's jobs report is any indication of what Friday will bring, we could be in for another positive surprise.
In the meantime, we'll get another look at jobs this morning with the Weekly Jobless Claims, and the Challenger Job-Cut Report. We'll also get a look at Factory Orders as well.
And hopefully another up day to add to this fantastic rebound.
Bonuses and pay raises temporarily halted, but they get that back once they take it from you.
Are they cutting stock buybacks and dividend payouts? Of course not.
Give up scope, and it comes back as United Express.
Hold the line on scope. Anything you give up goes into their pockets.
Pivot
**********
From Zacks:
Stocks soared yesterday, erasing Tuesday's losses, and adding to the sharp rebound we've seen since Friday's lows were put in.
And after yesterday's rally, the major indexes are no longer in correction territory.
At its lowest point, the S&P had corrected by more than -15.66%. (A correction is defined as a pullback between -10% to just under -20%.)
As of yesterday's close, the S&P is now 'only' down by -7.56%.
It's too early to tell if we'll see stocks cross back below that -10% threshold or not, let alone retest the lows. But either way, the rally we've seen so far has been quite impressive.
The coronavirus, however, remains a real concern globally. Both from a health perspective and from an economic perspective.
But the outbreak appears to have peaked in China. And while their recent economic numbers look dismal (they reported record low manufacturing numbers earlier in the week, and record low service numbers just yesterday), we're seeing signs that the country is beginning to get back to work.
And gladly, the impact to the U.S. so far, from a public health standpoint and from an economic standpoint, has been mild.
Economically speaking, that was underscored by yesterday's MBA Mortgage Applications report which showed the composite index up 15.1% with refi's soaring 26%. (And after the Fed's rate cut yesterday, I would expect those numbers to jump again next week.)
Same with the ISM Non-Manufacturing Index which jumped to 57.3 vs. last month's 55.5 and views for 55.0. That's in sharp contrast to China's record low reading.
We also saw better than expected job growth as estimated by the ADP Employment Report. They were expecting 165,000 new private payroll jobs, but instead came out with 183,000.
That's often looked at as a precursor to the official Employment Situation Report that comes out two days later on Friday. At the moment, the consensus is calling for 177K new jobs (155K from the private sector and 22K from the public). But if yesterday's jobs report is any indication of what Friday will bring, we could be in for another positive surprise.
In the meantime, we'll get another look at jobs this morning with the Weekly Jobless Claims, and the Challenger Job-Cut Report. We'll also get a look at Factory Orders as well.
And hopefully another up day to add to this fantastic rebound.
03-05-2020, 04:25 AM
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Joined APC: Dec 2019
Posts: 30
From CNN:
United had already warned investors that the crisis had cut virtually all of its revenue on flights to China and Hong Kong during the current quarter, and about 75% onother trans-Pacific flights. But it said that it still expects to hit its earnings target for the quarter due partly to lower spending on fuel. Besides the fuel savings that comes from canceling flights, the price of jet fuel has plunged in recent weeks.
Shares of United (UAL) closed up 2% on Wednesday and JetBlue(JBLU) shares gained 3.5% as stocks rebounded from a recent sell-off. But shares of both airlines are still down nearly 25% since Feb. 21.
United had already warned investors that the crisis had cut virtually all of its revenue on flights to China and Hong Kong during the current quarter, and about 75% onother trans-Pacific flights. But it said that it still expects to hit its earnings target for the quarter due partly to lower spending on fuel. Besides the fuel savings that comes from canceling flights, the price of jet fuel has plunged in recent weeks.
Shares of United (UAL) closed up 2% on Wednesday and JetBlue(JBLU) shares gained 3.5% as stocks rebounded from a recent sell-off. But shares of both airlines are still down nearly 25% since Feb. 21.
03-05-2020, 04:25 AM
#3
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Joined APC: May 2017
Position: 175 CA
Posts: 1,285
Did you write this editorial yourself?
We will see massive volatility for the foreseeable future. Basing economic forecasts on one day swings in the market is asinine.
In northern Italy it looks like this today;
3300 infected, 1250 hospitalized, 310 in the ICU, 107 dead.
A week ago Italy had about a dozen known infections.
We will see massive volatility for the foreseeable future. Basing economic forecasts on one day swings in the market is asinine.
In northern Italy it looks like this today;
3300 infected, 1250 hospitalized, 310 in the ICU, 107 dead.
A week ago Italy had about a dozen known infections.
03-05-2020, 05:27 AM
#4
Gets Weekends Off
Joined APC: Jun 2018
Position: Sitting
Posts: 513
Did you write this editorial yourself?
We will see massive volatility for the foreseeable future. Basing economic forecasts on one day swings in the market is asinine.
In northern Italy it looks like this today;
3300 infected, 1250 hospitalized, 310 in the ICU, 107 dead.
A week ago Italy had about a dozen known infections.
We will see massive volatility for the foreseeable future. Basing economic forecasts on one day swings in the market is asinine.
In northern Italy it looks like this today;
3300 infected, 1250 hospitalized, 310 in the ICU, 107 dead.
A week ago Italy had about a dozen known infections.
03-05-2020, 05:48 AM
#6
Gets Weekends Off
Joined APC: Jun 2018
Position: Sitting
Posts: 513
The coronavirus is not a new virus. It has been around since the 1960's. It's just that we have never seen this strain before and people are retarding out over it. It's just a very bad version of influenza.
Last edited by drywhitetoast; 03-05-2020 at 06:12 AM.
03-05-2020, 06:02 AM
#7
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Joined APC: Mar 2007
Position: .
Posts: 348
Did you write this editorial yourself?
We will see massive volatility for the foreseeable future. Basing economic forecasts on one day swings in the market is asinine.
In northern Italy it looks like this today;
3300 infected, 1250 hospitalized, 310 in the ICU, 107 dead.
A week ago Italy had about a dozen known infections.
We will see massive volatility for the foreseeable future. Basing economic forecasts on one day swings in the market is asinine.
In northern Italy it looks like this today;
3300 infected, 1250 hospitalized, 310 in the ICU, 107 dead.
A week ago Italy had about a dozen known infections.
It’s known that this virus attacks your lower respiratory system. I’d assume smokers are being affected by this far more than healthy non-smokers. Have you seen all the people that smoke in Italy and in China?
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03-05-2020, 06:21 AM
#8
Fly or Die
Joined APC: Jan 2019
Posts: 491
I won’t wade into the corona args, but it is insane how many people smoke in Italy. Can’t speak to China but could see it being similar (or worse).
03-05-2020, 06:26 AM
#9
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Position: Sitting
Posts: 513
03-05-2020, 06:27 AM
#10
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Joined APC: Feb 2012
Position: 787
Posts: 3,202
Smoking is rampant in China.....you combine that with the disgusting air quality and it’s no wonder people are dying from pneumonia.
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