Senate fails to pass Republican coronavirus stimulus plan Senate Democrats blocked a targeted pandemic help program offered by Republicans, claiming it’s not enough to mitigate the pandemic’s damage. The Senate’s vote in favor of the bill was short of the sixty required on a procedural measure to move toward passage. The measure did not include a next $1,200 direct payment to individuals. It also lacked brand new help for cash strapped state and local governments or maybe cash for rental and mortgage support and food aid – all priorities for Democrats. Earlier Thursday, Senate Minority Leader Chuck Schumer, D-N.Y., called the GOP plan over insufficient and entirely inadequate. – Yun Li, Jacob Pramuk
Markets at midday: Stocks fall as tech struggles to continue rebound The major averages were down in midday trading as tech shares struggled following through on their sharp gains from the earlier session. The Dow traded 114 points lower, or maybe 0.4 %, after being up more than 200 points earlier in the day. The S&P 500 was down 0.4 %. The Nasdaq Composite dipped 0.1%. – Fred Imbert
Starboard Value SPAC opens at $10, in line with IPO pricing Jeffrey Smith’s special purpose acquisition company Starboard Value Acquisition Corp started at ten dolars a share in its market debut on Thursday following pricing the initial public offering at ten dolars a share. The stock, which trades within the ticker SVACU on the Nasdaq, edged slightly higher and last traded at $10.03 a share. The SPAC offering had been upsized to $360 million from $300 million.
Starboard Value said in a statement it will seek a target organization in a slew of various industries such as entertainment., hospitality, industrials, consumer, healthcare, and technology – Yun Li
Stocks slip into the red The main average gave up their earlier gains as shares of technology stocks lost vapor. The Dow Jones Industrial Average was last down 70 points. The Nasdaq Composite traded around the flatline. – Maggie Fitzgerald
Stocks cut gains, Apple goes in the white The technology stock rally lost steam about an hour into the trading session with the major averages giving up a huge chunk of their earlier gains. Shares of Apple, which rose almost 2 % earlier in the day, turned negative. The Dow Jones Industrial Average was last up 35 points. – Maggie Fitzgerald
Online retail surges on Thursday morning E-commerce stocks had been several of the greatest winners in early trading on Thursday. The Online Retail ETF (IBUY) has risen 2.7 %, on pace for its greatest day since Sept. one when it received 3.19 %. The ETF is actually up three % so far this week.
The ETF was led Thursday by Overstock, Spotify, Wayfair and Peloton. Overstock jumped fifteen % on Thursday, while Peloton was on pace for its best week since May. – Jesse Pound, Gina Francolla
Navistar jumps after Traton raises acquisition priced Shares of truck maker Navistar International jumped more than eighteen % on Thursday after Volkswagen subsidiary Traton raised the takeover offer of its from $35 per share to $43 a share. Traton, which owns 16.8 % of Navistar, 1st approached the business in January. – Pippa Stevens
Stocks open in the green, tech rebound charges on The main averages opened in positive territory on Thursday, with huge technology companies leading the way after its recent sell-off. The Dow Jones Industrial Average popped 118 points after the opening bell. The S&P 500 ticked 0.45 % greater. The Nasdaq Composite rose 0.86 %, helped by a 4 % jump in Tesla and a 1.7 % rise in Apple’s stock. – Maggie Fitzgerald
Shares of Penn National Gaming jump 5 % contained premarket trading after big call from Rosenblatt Shares of Penn National Gaming rose more than five % in premarket trading on Thursday after Rosenblatt initiated coverage of the gambling business with a buy rating and a $80 per share cost target, probably the highest target on Wall Street. The Wall Street firm sees Penn National’s partnership with Barstool Sports as a chance to get market share. Rosenblatt’s target price suggests a near 40 % rally for the gambling company’s stock from its closing price of $58.15 on Wednesday. With a distinctive, content focused strategy, we believe PENN has the occasion to acquire considerable share in the online sports betting market at above peer margins pushed by the Barstool partnership of theirs and actual physical footprint, Rosenblatt Securities customer technology analyst Bernie McTernan told clients. As sports betting moves from niche to mainstream, we believe Barstool can make use of this greenfield alternative to be the dominant sports betting media business in the US. – Maggie Fitzgerald
Producer costs rise more than expected in August
U.S. producer price tags increased somewhat more than expected in August, led by an increase in the cost of services. The Labor Department said on Thursday the producer price index rose 0.3 % last month after surging 0.6 % in July, compared with a Dow Jones estimation of a 0.2 % gain. There seemed to be a 0.5 % increase of services, while prices for commodities edged up 0.1%. – Yun Li
Citi CEO Michael Corbat set to retire in February Citigroup CEO Michael Corbat will retire in February 2021 after 8 years at the helm of the main U.S. bank. Corbat – which has worked for Citi for 37 years – will in addition set down from Citi’s board. Jane Fraser – Citi’s President and Ceo of Global Consumer Banking – will change Corbat, becoming the original female CEO of a megabank. – Maggie Fitzgerald
Coronavirus relief bill comes before the Senate On Thursday the U.S. Senate will vote on a Republican bill seeking $300 billion for coronavirus tool. The bill is well under the $3 trillion in aid that Democrats have called for. Senate Majority Leader Mitch McConnell needs 60 votes. Failing that, it’s unlikely that another aid package would be voted on in front of November’s elections. – Pippa Stevens
Jobless claims miss estimates, come in at 884,000 The number of people filing for unemployment benefits last week was higher than anticipated when the jobs market is actually slow to recuperate from the coronavirus pandemic. The Labor Department said 884,000 initial claims were filed the week ending Sept. 5. Economists polled by Dow Jones expected a print of 850,000. Continuing claims, which includes those receiving unemployment benefits for a minimum of 2 straight weeks, rose by 93,000 to 13.385 million. – Fred Imbert, Jeff Cox
S&P 500 decline could possibly double before pullback is actually over, CFRA says The S&P 500s seven % pullback is the average for all 59 bull markets since World War II, though it might sink further to its 200 day moving average, about a 13.5 % decline in total, according to CFRA’s Sam Stovall.
The near 14 % decline would be inside the range of declines usually seen after post bear sector new highs. The 200 day is now at 3,096, nearly 300 points from the Wednesday close of its of 3,398. The S&P had recovered 2 % Wednesday.
The guess of mine is we end up falling a little bit more, said Stovall, chief investment strategist. But since there has long been no change in interest rates, an additional drop would provide a buying opportunity, he said. The 200-day moving average is often bull market assistance, and it is a technical level which essentially is the average of the past 200 closing prices.
Just before Wednesday’s rebound, the tech market had fallen probably the furthest, down eleven %. In a further decline, Stovall said high flying development groups could fall greater than others. – Patti Domm
Bed Bath & Beyond shares pop following Wedbush says business has turned a good corner’ Wedbush added Bed Bath & Beyond to its best concepts list , sending the stock up greater than 5 % of the premarket. Analyst Seth Basham stated Bed Bath & Beyond will continue to trade at troubled ph levels despite the business turning the corner to good comps in recent months and being on the cusp of a remarkable enhancement of earnings.
Obviously, many don’t believe in this possible transformation, Basham said. We beg to differ. The analyst noted he expects Bed Bath & Beyond to achieve EBITDA of about $850 million by 2022 utilizing conservative estimates.
He also stated that sustained comparable-store sales is important to the company’s outlook, but added that while no list transformation is linear, we expect this story to build with the company’s F2Q earnings report on October one, followed by a mid late October analyst meeting roadmapping the forthcoming transformation and then stronger holiday sales.
Bed Bath & Beyond shares are done more than thirty three % year to date. Entering Thursday’s session, the stock was also over 35 % below its 52-week high. – Fred Imbert, Michael Bloom
Spotify rises 4 % following Credit Suisse’s upgrade Shares of Spotify received more than 4 % in premarket trading Thursday after Credit Suisse upgraded the music streaming service business to outperform from basic. The bank is bullish on Spotify’s major labels and subscriber growth participating in its Marketplace offering, which enables artists to market the music of theirs to precise audiences. – Yun Li
Starboard Value’s upsized $360 million SPAC begins trading Thursday Jeffrey Smith’s Starboard Value’s blank-check business has enhanced the size of the initial public offering of its to bring up $360 million. The new special goal acquisition company, or perhaps SPAC, is called Starboard Value Acquisition Corp, and yes it will offer thirty six million shares, upsized from thirty million shares, at $10.00 a share. It will be listed on the Nasdaq and can trade within the ticker SVACU beginning on Thursday.
Starboard’s launch followed a slew of high-profile investors such as billionaire hedge fund manager Bill Ackman and Oakland A’s executive Billy Beane that chose this IPO way to finance a merger or maybe acquisition and take the target solid public. Total money raised by blank check deals have exceeded traditional IPOs for 2 weeks straight, and there has been a record $33 billion raised through a total of 86 SPACs this particular year alone, a more than 260 % jump from a year ago, based on Refinitiv. – Yun Li