Wednesday Morning Reads
- A U.S. Shale Bust Like No Other
- Worst Downturn Since the Great Depression
- China Blasts Trump’s Move
- Relief Money Out of Thin Air
- War Bonds Are Coming
- Wall Street’s Biggest-Ever China Bet
- There Are Limits
- Analysts Expect Bleak U.S. Retail Sales Data
- The Stock Market is Not Your Benchmark
- Airline relief package called a disaster by JPMorgan
- Crude oil breaks below $20 as IEA sees 'staggering' drop in global demand
- Stock rally taking a breather
- Texas oil production cut proposal stirs up anger on both sides
- Bank of America Q1 EPS misses on huge reserve build
- Main Street Capital holding dividend for now
- Goldman Sachs EPS misses by $0.18, beats on revenue
- Frontier Communications files for bankruptcy
- Goldman Sachs a believer in Tesla
- Aphria posts strong FQ3 but pulls guidance
- Guggenheim on fence with Amgen in premarket analyst action
- Tesla China registrations jump with Shanghai pumping out Model
During the White House coronavirus briefing, President Trump says he could start speaking with state governors as early as Thursday about reopening plans. The governors will be in charge of when and how to open, but FEMA and the CDC have reportedly developed guidelines on a safe, phased approach. Trump says that 29 states are in "good shape" regarding the coronavirus and could reopen earlier than May 1.
Through the U.S. CARES Act, JetBlue (NASDAQ:JBLU) will receive $685M in grants and $251M in loans from the government. The grant covers about 56% of the company’s payroll costs for a six-month period last year. The low-interest loan will be paid back to the government starting October. JetBlue has to maintain a minimum level of domestic air service to receive the funds.
Go deeper: Airlines opt in for government relief.
With long-term financials becoming more untenable, J.C. Penney (NYSE:JCP) is reportedly considering bankruptcy protection. Reuters sources say the retail chain has enough cash to survive a few months of store closures, and rescue financing remains an option.
Go deeper: 'J. C. Penney: Bankruptcy Risk Increases With The Extended Store Closures,’ by Elephant Analytics.
Frontier Communications (NASDAQ:FTR) has filed for Chapter 11 bankruptcy protection just before April 15 debt payments came due. That comes through a prearranged restructuring support agreement that has the backing of creditors representing more than 75% of Frontier's $11B in outstanding unsecured bonds. It results in $460M in debtor-in-possession financing - which Frontier says will combine with cash on hand for $1.1B-plus in liquidity, enough to provide uninterrupted operations.
With its Shanghai plant producing local Model 3s - including two newer versions - Tesla (NASDAQ:TSLA) has seen its China car registrations vault 450% month over month in March. The registrations were up to 12,709 units vs. February's 2,314. The Shanghai factory added a Long Range Model 3 and a Performance Model 3 to its repertoire last week.
Go deeper: ’Tesla Needs To Ramp Up Shanghai Production Further To Meet Demand In 2020,’ by Nick Cox.
Airbnb (AIRB) has locked down a new $1B loan, just over a week after it raised $1B in a debt deal. The new deal is a five-year first-lien deal - and one link between the two deals: Silver Lake, which was one of two investors in the week-ago deal, is a key player in the new loan, Reuters says.
Go deeper: Airbnb raises $1B in new round.
What else is happening...
Texas oil production cut proposal stirs up anger on both sides.
In Asia, Japan -0.45%. Hong Kong -1.20%. China -0.57%. India -0.79%.
In Europe, at midday, London -2.27%. Paris -1.80%. Frankfurt -1.92%.
Futures at 5:45, Dow -1.68%. S&P -1.81%. Nasdaq -1.35%. Crude -2.14% to $19.68. Gold -1.82% to $1,736.70. Bitcoin -0.03% to $6,853.
Ten-year Treasury Yield -7.4 bps to 0.676%
Today's Economic Calendar
7:00 MBA Mortgage Applications
8:30 Retail Sales
8:30 Empire State Mfg Survey
9:15 Industrial Production
10:00 Business Inventories
10:00 NAHB Housing Market Index
10:00 Atlanta Fed's Business Inflation Expectations
10:30 EIA Petroleum Inventories
1:00 PM Fed's Bostic: Economic Outlook
2:00 PM Fed's Beige Book
4:00 PM Treasury International Capital