Senate fails to pass Republican coronavirus stimulus plan Senate Democrats blocked a targeted pandemic relief plan proposed by Republicans, claiming it is insufficient to mitigate the pandemic’s damage. The Senate’s vote in favor of the bill was short of the 60 needed on a procedural action to move toward passage. The measure didn’t include a second $1,200 immediate transaction to individuals. It also lacked brand new relief for cash strapped state and local governments or cash for rental and mortgage support as well as food aid – all priorities for Democrats. Earlier Thursday, Senate Minority Leader Chuck Schumer, D-N.Y., called the GOP plan beyond insufficient and completely inadequate. – Yun Li, Jacob Pramuk
Marketplaces at midday: Stocks fall as tech struggles to continue rebound The main averages were down in midday trading as tech shares struggled to follow through on their sharp gains from the earlier session. The Dow traded 114 points lower, or perhaps 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 ten dolars, in line with IPO pricing Jeffrey Smith’s specific purpose acquisition company Starboard Value Acquisition Corp was established at $10 a share in its market debut on Thursday after 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 is going to seek a target organization in a slew of various industries like entertainment., hospitality, industrials, consumer, healthcare, and technology – Yun Li
Stocks slip into the white The main average gave up their earlier gains as shares of technology stocks lost steam. The Dow Jones Industrial Average was last down 70 points. The Nasdaq Composite traded throughout 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 major chunk of their earlier gains. Shares of Apple, which rose nearly 2 % earlier in the day, turned negative. The Dow Jones Industrial Average was last up 35 points. – Maggie Fitzgerald
Internet list surges on Thursday morning E commerce stocks were several of the biggest winners in early trading on Thursday. The Online Retail ETF (IBUY) has risen 2.7 %, on pace for the best day of its since Sept. one when it received 3.19 %. The ETF is up three % so far this week.
The ETF was led Thursday by Overstock, Spotify, Wayfair and Peloton. Overstock jumped 15 % on Thursday, while Peloton was on pace for its greatest week since May. – Jesse Pound, Gina Francolla
Navistar jumps following Traton raises acquisition price Shares of truck maker Navistar International jumped more than 18 % on Thursday after Volkswagen subsidiary Traton raised the takeover provide of its from $35 per share to forty three dolars a share. Traton, which owns 16.8 % of Navistar, 1st approached the organization in January. – Pippa Stevens
Stocks open in the green, tech rebound charges on The key 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 % higher. 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 five % in premarket trading after big call from Rosenblatt Shares of Penn National Gaming rose greater than 5 % in premarket trading on Thursday after Rosenblatt initiated coverage of the gambling organization with a buy rating and an eighty dolars per share price 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 an extraordinary, content focused strategy, we feel PENN has the opportunity to acquire considerable share in the online sports betting industry at above peer margins driven by their Barstool partnership and actual physical footprint, Rosenblatt Securities customer technology analyst Bernie McTernan told clients. As sports betting techniques from niche to mainstream, we feel Barstool is able to make use of this greenfield opportunity to be the dominant sports betting media business in the US. – Maggie Fitzgerald
Producer costs rise much more than expected in August
U.S. producer price tags increased slightly more than expected in August, led by a rise 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 was 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 major U.S. bank. Corbat – who has been effective for Citi for 37 years – will also set down from Citi’s board. Jane Fraser – Citi’s Ceo as well as President of Global Consumer Banking – will change Corbat, becoming the very first female CEO of a megabank. – Maggie Fitzgerald
Coronavirus relief bill comes before the Senate On Thursday the U.S. Senate is going to vote on a Republican bill seeking $300 billion for coronavirus aid. The bill is well below the three dolars trillion in aid that Democrats have called for. Senate Majority Leader Mitch McConnell needs 60 votes. Failing that, it is not likely that another aid package will be voted on in front of November’s elections. – Pippa Stevens
Jobless claims miss estimates, come in at 884,000 The amount of men and women filing for unemployment benefits last week was higher than expected as the jobs market is actually slow to recover from the coronavirus pandemic. The Labor Department said 884,000 initial claims were filed the week ending Sept. five. Economists polled by Dow Jones expected a print of 850,000. Continuing claims, which includes those receiving unemployment benefits for no less than 2 straight weeks, rose by 93,000 to 13.385 million. – Fred Imbert, Jeff Cox
S&P 500 decline may be used before pullback is actually over, CFRA says The S&P 500s 7 % pullback is actually the normal for all 59 bull marketplaces since World War II, however, it may 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 assortment of declines typically seen after post-bear market new highs. The 200-day is now at 3,096, nearly 300 points from its Wednesday close of 3,398. The S&P had recovered two % Wednesday.
The guess of mine is we end up falling just a little bit more, said Stovall, chief investment strategist. But since there has been no change in interest rates, an additional drop would present a buying opportunity, he said. The 200 day moving average is usually bull market support, and it’s a technical level that basically will be the average of the past 200 closing prices.
Just before Wednesday’s rebound, the tech market had fallen probably the furthest, down 11 %. In a further decline, Stovall said high flying growth groups might fall more than others. – Patti Domm
Bed Bath & Beyond shares pop following Wedbush says company has turned a good corner’ Wedbush added Bed Bath & Beyond to the greatest ideas list of its, delivering the stock up more than 5 % in the premarket. Analyst Seth Basham said Bed Bath & Beyond will continue to trade at troubled ph levels even with the business turning the corner to good comps in recent months and being on the cusp of a significant improvement of profitability.
Clearly, many do not believe in that potential transformation, Basham said. We beg to differ. The analyst noted he expects Bed Bath & Beyond to reach EBITDA of almost $850 million by 2022 utilizing careful estimates.
In addition, he said that sustained comparable-store sales is actually critical to the company’s perspective, but added that while no retail transformation is linear, we expect this story to create with the company’s F2Q earnings report on October 1, followed by a mid late October analyst meeting roadmapping the forthcoming transformation and then stronger holiday sales.
Bed Bath & Beyond shares are down over 33 % season to date. Entering Thursday’s session, the stock was also more than thirty five % beneath its 52 week high. – Fred Imbert, Michael Bloom
Spotify rises 4 % following Credit Suisse’s upgrade Shares of Spotify gained greater than 4 % in premarket trading Thursday after Credit Suisse up the music streaming service company to outperform from neutral. The bank is actually bullish on Spotify’s major labels and subscriber development participating in the Marketplace offering of its, which enables artists to promote the music of theirs to targeted audiences. – Yun Li
Starboard Value’s upsized $360 million SPAC begins trading Thursday Jeffrey Smith’s Starboard Value’s blank-check company has enhanced the size of its initial public offering to increase $360 million. The brand new special purpose acquisition business, or maybe SPAC, is called Starboard Value Acquisition Corp, and this is going to offer 36 million shares, upsized from 30 million shares, at $10.00 a share. It will be listed on the Nasdaq and can trade under the ticker SVACU beginning on Thursday.
Starboard’s launch followed a slew of high profile investors including billionaire hedge fund manager Bill Ackman and Oakland A’s executive Billy Beane which chose this IPO option to finance a merger or perhaps acquisition and take the target solid public. Total funds raised via blank check deals have exceeded conventional IPOs for two months straight, and there continues to be a record $33 billion raised via a total of eighty six SPACs this year alone, a much more than 260 % jump from a season ago, as reported by Refinitiv. – Yun Li