Shares of virtual hotelier Airbnb (NASDAQ: ABNB) got caught up in the tech stock flash crash Tuesday morning, falling more than 10% in early trading as the Nasdaq fell 4%. The Nasdaq recovered to "only" a 1.7% sell-off, and Airbnb is down "only" 5.2% -- and Loop Capital may be part of the reason for Airbnb's partial recovery. Loop Capital, you see, upgraded Airbnb shares to "buy" yesterday, ahead of the company's first earnings report as a publicly traded company, due out Thursday, Feb. 25.
(Bloomberg) -- Several Federal Reserve presidents argued Thursday that surging Treasury yields reflect economic optimism for a solid recovery from the Covid-19 crisis and stressed that the central bank has no plans to tighten policy prematurely.“I think the rise in yields is probably a good sign so far because it does reflect better outlook for U.S. economic growth and inflation expectations which are closer to the committee’s inflation target,” St. Louis Fed President James Bullard told reporters after a virtual speech.Comments by Bullard and two other Fed leaders, Atlanta’s Raphael Bostic and Kansas City’s Esther George, showed that the central bank’s policy makers are solidly united behind Fed Chair Jerome Powell’s patience in making any adjustments to monetary policy.Powell told lawmakers this week that the nation was still a “long way” from the Fed’s goals for full employment and price stability, signaling the central bank will maintain ultra-easy monetary policy for some time -- despite hopes for a strong economy later this year as vaccinations spread.The Fed presidents agreed with Powell’s characterization of the rise in yields as “a statement of confidence” in the economic outlook. The 10-year Treasury yield reached 1.61% Thursday, the highest in more than a year, before trimming its gains.“Much of this increase likely reflects growing optimism in the strength of the recovery and could be viewed as an encouraging sign of increasing growth expectations,” George said in a speech.Bostic told reporters he was not expecting the Fed to respond to rising yields: “Yields have definitely moved at the longer end, but right now I am not worried about that.”All three Fed presidents said it was premature to begin discussing tapering of the central bank’s massive bond-buying program, with Bullard noting that Powell would initiate the discussion when it’s appropriate.Strong ReboundIn separate remarks, a fourth Fed leader, New York’s John Williams, said the economy was poised for a strong rebound. “Indeed, with strong federal fiscal support and continued progress on vaccination, GDP growth this year could be the strongest we’ve seen in decades,” he said, though he added that underlying inflation is likely to remain “subdued for some time.”Bullard echoed that optimism, noting the Atlanta Fed’s tracking model shows robust growth for gross domestic product in the first quarter. He predicted the U.S. unemployment rate will drop to 4.5% by year’s end, with pent-up demand and elevated savings boosting spending by Americans.“I gave a rosy outlook today but it’s only an outlook,” Bullard said. As for a policy change, “the chair has wanted to start that conversation only when it’s appropriate and not get ahead of ourselves even though we do have high hopes the pandemic will come to an end.”Bostic emphasized that the labor market still has considerable pain, especially for lower-income workers and minorities, and that it would take a long time to regain the 10 million jobs that have been lost.“Just to remind you, our mandate is full employment,” Bostic said Thursday during a virtual speech to the Atlanta Fed’s banking-outlook conference. “It’s not full GDP. It is not the size of GDP. So this disparity is something that is important and something we are going to have to continue to watch closely.”(Updates with comments by New York Fed president in ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
- The Wrap
How’s this for a sequel: GameStop’s stock price more than doubled on Wednesday, recalling the gaming retailer’s much-publicized Wall Street surge last month — a day after CFO Jim Bell announced his resignation. GameStop opened Wednesday trading a little below $45 per share and spent much of the day hovering between $48-$54 per share. The company’s stock later spiked during the final hour of trading, closing the day at $91.71 per share — up 104% — following two trading halts. That momentum carried over to after-hours trading, with GameStop shares going for about $150 two hours after the closing bell. The big jump was an easy reminder of GameStop’s wild January, when the company’s share price ran from about $20 per share to a high of $483 per share in a matter of weeks. GameStop’s run was spurred on, in part, by the backing of WallStreetBets, a popular Reddit forum where many users championed the retailer; one aspect that made GameStop especially attractive to WSB users was that it was heavily shorted, or bet against — a reality that helped the company’s stock rocket higher once investors scrambled to grab GameStop shares. Also Read: GameStop and WallStreetBets Documentary in the Works From XTR and The Optimist GameStop’s meteoric rise was derailed in late January, when stock trading app Robinhood blocked users from buying shares of GameStop and other popular “meme stocks” like AMC and BlackBerry for one day. Now, after seeing GameStop trade in the $40-$60 range for much of February, many WallStreetBets users were back to celebrating on Wednesday. “Don’t call it a comeback!” one user exclaimed, while sharing a clip from LL Cool J’s “Mama Said Knock You Out.” Bell’s resignation was likely the galvanizing force behind Wednesday’s big run. Activist investor Ryan Cohen, the co-founder and former CEO of Chewy who took a major stake in GameStop last year, criticized GameStop’s executive team last November, saying the company needed to “pivot toward becoming a technology-driven business that excels in the gaming and digital experience worlds.” Many faithful GameStop shareholders have been clamoring for the company to follow Cohen’s guidance more, which may be key reason why, following Bell’s exit, its shares jumped Wednesday. Read original story GameStop’s Stock Doubles After CFO Resigns, Soaring From $45 to $92 At TheWrap
- Motley Fool
Airbnb (NASDAQ: ABNB) stock jumped 11% in early trading Wednesday before retreating a bit as the day wore on. Just 24 hours remain before Airbnb reports its fiscal Q4 earnings -- tomorrow after close of trading. According to analysts who follow the stock, Airbnb is probably going to report a loss of epic proportions -- as much as $9.16 per share, on sales of just under $748 million.
- Insider Monkey
In this article, we are going to talk about the Top 15 Financial Centers/Cities of The World. You can skip our detailed explanation of the criteria we used to rank the cities in our list and go directly to the Top 5 Financial Centers/Cities of The World. The geographic placement of a business plays a […]
Leisure travelers in the company's biggest market stepped out to nearby locations that could be accessed by a car and are within 50 miles, lifting daily booking rates up by 13%, Airbnb said. "Nights booked prior to cancellations in North America were close to the levels reached in the same quarter of 2019," the company said. Airbnb expects wider vaccine rollouts in 2021 to help a significant rebound in travel.
- Motley Fool
Box (NYSE: BOX) is a cloud-storage and work management platform similar to Dropbox (NASDAQ: DBX) and Alphabet's Google Drive (NASDAQ: GOOG) (NASDAQ: GOOGL), but focused on large enterprises. Is Box mounting a comeback, or is it primed to underperform the market again over the next few years? Box started with its Content Cloud platform, which is the basic (and now commoditized) product of storing and sharing work documents in the cloud.
Britain will resist "very firmly" any European Union attempts to arm-twist banks into shifting trillions of euros in derivatives clearing from Britain to the bloc after Brexit, Bank of England Governor Andrew Bailey said on Wednesday. Europe's top banks have been asked by the European Commission to justify why they should not have to shift clearing of euro-denominated derivatives from London to the EU, a document seen by Reuters on Tuesday showed. Britain's financial services industry, which contributes over 10% of the country's taxes, has been largely cut off from the EU since a Brexit transition period ended on Dec. 31 as the sector is not covered by the UK-EU trade deal.
- Motley Fool
Walt Disney (NYSE: DIS) announced today the launch date for its upcoming Disney+ streaming series, Loki, in a Tweet informing viewers the newest superhero show will start appearing on screens on June 11. The show is described as a "crime thriller" focusing on Loki, Marvel Studios' smarmy god of mischief from the company's rendering of Norse mythology. The show will be the second major Disney+ offering from Marvel Studios following the highly popular WandaVision, a sort of superhero sitcom.
(Bloomberg) -- While the U.S. rushes toward a blockbuster fiscal stimulus package to accelerate its recovery from the coronavirus crisis, much of Europe is pootling along in the slow lane.President Joe Biden’s $1.9 trillion stimulus bill, if congressional leaders pass the full amount, would take his administration’s spending in 2021 to more than three times as much as euro-area countries have planned, according to UniCredit SpA.As a consequence, most economists expect the U.S. economy to reach its pre-pandemic size around the middle of 2021, roughly a full year before the currency bloc.JPMorgan Chase & Co. estimates the “fiscal thrust” — the boost from discretionary government spending minus the drag of expiring tax breaks and support measures — will add 1.8% to U.S. output this year. For the euro zone, it’ll subtract 0.1%.Europe’s go-slow is partly a result of its unwieldy makeup. The European Union’s 27 sovereign governments set their own fiscal policies, and it took months of negotiations last year to agree on a common 750 billion-euro ($910 billion) recovery fund. Proposals for how to spend the money are still being processed, and funds probably won’t start being distributed until the second half of the year.Such careful consideration has its benefits. Get it right, and the EU will have a well-structured suite of projects that enhance productivity and growth potential for years to come. Get it wrong though, and the continent could be blighted for just as long.“The question is what do we want to achieve,” said Carsten Brzeski, an economist at ING Germany. “Do we want this short-term momentum or do we want to use the money to improve the structure of the economy in a sustainable way? In Europe it’s the latter that we need.”The EU’s recovery fund, combined with a 1.1 trillion-euro multi-year budget, is a breakthrough package for the union. The money will be spent between now and 2027, with more than half intended for “modernization” such as digitization and fighting climate change.Not only is it the EU’s largest-ever stimulus package, the recovery fund is financed by jointly backed bonds — the first time the EU has agreed to such a measure.It’s temporary, but European Central Bank officials hope it will ultimately lead to a permanent joint fiscal capacity, effectively the equivalent of the U.S. federal budget.The bloc has long struggled with smoothing out economic differences between countries, and the pandemic has exposed that flaw once again. National fiscal programs have been far more generous in wealthy nations such as Germany than in weaker ones such as Italy and Spain.Not everyone is convinced Europe has got it right though. Erik Nielsen, UniCredit’s chief economist, says the difference in spending plans compared to the U.S. is “mind-boggling” and the euro-zone approach is “severely inadequate.” It’ll lead to a muted recovery, higher unemployment, deeper economic scars and weak inflation, he said in his report.Such an outcome would be all too familiar for the euro zone. Fixation on austerity to reduce debts after the 2008-2009 global financial crisis, rather than boosting growth through consumption, condemned the bloc to a sluggish recovery which turned into a sovereign debt crisis and double-dip recession.Nielsen cites the so-called output gap as a key indicator of the problem. That gauge of unused economic potential is hard to measure precisely, but it’s widely considered to be bigger in the EU than in the U.S. at the moment. That means Europe should be doing more, not less, to boost its economy.The International Monetary Fund estimates the U.S. output gap was 3.2% of gross domestic product in 2020, and 5.1% in the euro zone.U.S. stimulus is already rapidly reducing slack there, according to the Congressional Budget Office. Treasury Secretary Janet Yellen and high-profile economists such as Lawrence Summers have sparred over the risk that the Biden administration’s spending is too high, potentially fueling asset bubbles and overly high inflation. Still, some economists argue that the vagaries of the output gap make it a poor foundation for policy decisions. Maria Demertzis, deputy director at the Bruegel think tank in Brussels, said European countries are right to focus on support for struggling parts of the economy and investment. Measures to boost consumption aren’t targeted enough, she said.Experience from 2020 also indicates that European consumers will probably go out and spend as soon as they’re allowed to do so. Households are sitting on hundreds of billions of euros in savings they accumulated during lockdowns that could further fuel the recovery.“Generous government support through the pandemic means European economies are set to rally once restrictions are lifted — a big chunk of slack will vanish, even without an extra fiscal boost,” said Jamie Rush, chief European economist at Bloomberg Economics. “In an environment of rising global yields, I see targeted stimulus offering the best value for money.”Read more: Euro-Area Confidence Improves Amid Optimism on Vaccine Rollout Pandemic Sets Stage for Euro-Area Showdown Over Debt Rules France’s Latest Plan to Save Businesses Has Europe IntriguedFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Ethanol production in the U.S. dropped the most on record last week as a historic cold snap prompted some plants to slow or completely shut down amid power outages and a spike in natural gas prices.Output slid 28% to 658,000 barrels a day, according to the Department of Energy. The decline was the biggest in figures going back to 2010, according to data compiled by Bloomberg. Production was also below the average estimate of 819,000 in Bloomberg survey of analysts.A brutal cold snap in the central U.S., home to the bulk of the country’s ethanol production, caused some plants to lose electricity and others to slow down or temporarily stop operations to conserve energy as natural gas prices soared. Some makers of the corn-based biofuel pulled back output as much as 60%, Renewable Fuels Association President Geoff Cooper said last week.Cooper said in an email on Wednesday that it could be another week before most plants are ramped back up to pre-deep-freeze levels of output, as producers deal with the various gas, electricity, and rail disruptions.Output last week was 38% below the same period a year earlier, and the smallest since early May, shortly after initial stay-at-home orders amid the coronavirus outbreak dramatically cut demand for motor fuel. Stockpiles for the week fell 6.2%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Square has been on fire this year but has endured a multi-day dip. Let's look at the charts to see if this latest selloff is an opportunity.
Americans can’t file their income taxes fast enough — but they should brace for some unwelcome news in their 2020 returns
As of Feb. 19, only 8 full days into the 2021 filing season, the IRS received 34.69 million individual returns.
The U.S. House votes Friday on a bill to give you a third payment. Could there be another?
The how-to guide details 60 different roles in Hong Kong's protests, from frontliners to medics to translators.
- Yahoo Finance
Charlie Munger: It's 'absolute insanity' to think owning 100 stocks instead of five makes you a better investor
Munger says the argument for diversification should be called 'diworsification.'
Here's what still has to happen, including the big vote scheduled for Friday.
The UK produced 27% fewer cars than a year ago, the worst January figure for over a decade.
(Bloomberg) -- Shares of GameStop Corp. doubled yesterday and jumped another 19% today. Options traders think the stock can do much better than that.The most-active option traded on the stock Thursday was a contract betting that GameStop shares would spike to $800 on Friday. Some 52,000 contracts changed hands during the session betting on this one-day gain of 636%For other options traders, it was a question of when GameStop would hit the $800 mark, not if. The seventh and eighth most-active contracts were call options wagering that the stock would reach $800 by next Friday or in three weeks. It’s hard to say whether the contracts were mainly bought or sold, two traders said.“It’s speculation gone wild, pure and simple,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. “It is Exhibit A in the nuttiness that is associated with GameStop.”GameStop’s Reddit-driven roller-coaster ride that roiled markets last month is continuing this week, with shares more than doubling in the final 90 minutes of trading on Wednesday and rising as much as 101% on an intraday level on Tuesday. The rally came as popular tech names from Tesla Inc. to Zoom Video Communications Inc. were battered after U.S. 10-year Treasury yields spiked to 1.6%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- The world’s biggest Bitcoin fund is selling off faster than the cryptocurrency itself.The $32 billion Grayscale Bitcoin Trust (ticker GBTC) has plunged 20% this week, outpacing a 13% decline in the world’s largest cryptocurrency. GBTC’s once-massive premium to its underlying holdings has evaporated as a result, with the price of GBTC closing 0.7% below its underlying holdings on Wednesday -- the first discount since March 2017, according to data compiled by Bloomberg.The vanishing premium suggests that after billions poured into GBTC as investors sought exposure to Bitcoin’s dizzying rally, investors are looking for the exits as the climb stalls, according to Bloomberg Intelligence.“This is panic or profit-taking selling,” said Eric Balchunas, BI’s senior ETF analyst. “It’s almost like the price of GBTC is an amplified version of Bitcoin price.”Bitcoin surged to a record of over $58,000 last weekend, but has stumbled since. The cryptocurrency fell another 1.4% on Thursday, on pace for its worst weekly pullback in a year.Michael Sonnenshein, chief executive officer of Grayscale Investments, acknowledged the risk of GBTC’s premium disappearing while speaking in a panel for the Bloomberg Crypto Summit on Thursday.“It’s certainly a risk, no question about it, but ultimately price discovery in GBTC every day is driven entirely by market forces,” Sonnenshein said.(Updates with comments from Michael Sonnenshein of Grayscale in the sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Should the rumor be true, evidence that the CEO has been a vocal booster of DOGE it wouldn't be hard to find.