Investing During the Coronavirus Panic

InvestorPlace Mission Control aims to bring readers up-to-the-second financial insights, updates and stock ideas to help you avoid danger and seize opportunity during the biggest crisis of our time.

[Check back often, as this page will be updated with more news, insights and stock picks each day the market is open.]

Buy These 5 Stocks When the Economy Recovers

[Thursday, April 9, 5:12 p.m.]
Contributed by John Kilhefner

InvestorPlace – Stock Market News, Stock Advice & Trading Tips

Add Goldman Sachs to the list of optimistic investors and to the list of skeptics.

CNBC published Goldman’s list (subscription required), which features two baskets of stock picks — one for if the widespread closures are extended, and another for if the virus is contained.

The former list features stocks that will outperform even if America remains closed for business longer than expected. The latter list is a bucket of stocks that will rebound in short order once the economy stabilizes.

InvestorPlace Markets Analyst Luke Lango, focused solely on Goldman’s economic recovery basket, wrote a story that covers each one of GS’ picks. For each pick, Lango includes the GS case for buying, and includes his outlook on the stock:

“Goldman Sachs likes Caterpillar’s 4.3% dividend yield. They also believe that rising technology content in industrial and manufacturing equipment creates multi-year revenue tailwinds for Caterpillar’s business,” writes Lango. His own take on Caterpillar expands on Goldman’s bull case: “As goes capital spending, so goes the industrial economy, and so goes Caterpillar’s business. Today, capital spending is depressed because economic activity has come to a standstill. But, companies are sitting on record high cash levels, with borrowing and spending costs as cheap as they’ve been, ever.”

Read more of Luke Lango’s take on Goldman Sachs’ basket of coronavirus stock picks here.

Don’t Forget: The Market Is Closed Friday, April 10

Story continues

[Thursday, April 9, 4:58 p.m.]
Contributed by Sarah Smith

Eager traders, be warned. In recognition of the Good Friday holiday, the New York Stock Exchange and Nasdaq Exchange will both be closed Friday, April 10. The bond markets, as well as commodities trading for gold and oil futures, will also be closed on Friday.

Expect normal trading in the U.S. to resume Monday, April 13. And don’t forget to watch our Mission Control page for updates after the holiday.

Burton Malkiel: It’s a Good Time to ‘Stock’ Up

[Thursday, April 9, 4:45 p.m.]
Contributed by Andrew Taylor 

By any measure, Burton Malkiel is a legend. Best known as the author of the seminal finance book A Random Walk Down Wall Street, he’s also a professor of economics at Princeton University, a director of Vanguard Group and is a leading proponent of the efficient-market hypothesis.

Few men garner more respect in finance and investing circles.

In a commentary piece in the Wall Street Journal titled, “It’s a Good Time to ‘Stock’ Up,” Malkiel makes the point that equities have become a good deal.

Those are powerful words from a man known for advocating that market timers are foolish and that markets generally behave rationally.

In the pages of the WSJ, Malkiel goes so far as to say that, “Today I recommend that investors consider … a program of liquidating a portion of their bond and short-term securities funds and buying equities instead.”

Sell bonds and buy stocks? Those are strong words from a legend, indeed.

SBUX Joins a Growing List of Companies Cutting Guidance

[Thursday, April 9, 4:36 p.m.]
Contributed by Bret Kenwell

Beloved coffee giant Starbucks (NASDAQ:SBUX) reported preliminary second-quarter earnings per share of 32 cents, missing analysts’ consensus estimate of 39 cents. The decision to pull full-year guidance didn’t help things either.

However, reporting from Barron’s highlights that Starbucks is far from alone in this rocky boat. Industrial stalwart General Electric (NYSE:GE) also withdrew its 2020 guidance and let investors know its first-quarter EPS was likely to come in below estimates.

While the list of companies in similar positions feels infinite, a few others that have withdrawn guidance include Dick’s Sporting Goods (NYSE:DKS), Intuitive Surgical (NASDAQ:ISRG) and Stitch Fix (NASDAQ:SFIX).

Stocks Close Higher on a String of Positive Headlines

[Thursday, April 9, 4:01 p.m.]
Contributed by Sarah Smith

The United Kingdom’s Boris Johnson left intensive care, and the Federal Reserve expanded its bond-buying program. Dr. Anthony Fauci, the nation’s top infectious disease specialist, lowered his estimates for the death toll the novel coronavirus will leave in the U.S.

With this news in mind, investors had some confidence in their trading on Thursday. The S&P 500, Dow Jones Industrial Average and the Nasdaq Composite all closed in the green.

• The S&P 500 closed higher by 1.45%

• The Dow Jones Industrial Average closed higher by 1.22%

• The Nasdaq Composite closed higher by 0.77%

Wait for Traffic to Rebound to Get Bullish on Retailers

[Thursday, April 9, 3:57 p.m.]
Contributed by Sarah Smith

Analysts at UBS are using an interesting metric to evaluate the novel coronavirus. Partnering with GPS maker TomTom (OTCMKTS:TMOAY), the firm is looking at how the pandemic is affecting traffic congestion. TomTom runs its own Traffic Index, which relies on its user data to map historic and live road congestion around the world.

For analysts at UBS, this congestion is also a good gauge of economic activity. As congestion falls, fewer consumers are driving to brick-and-mortar retailers and restaurants. It also means fewer workers are commuting to offices or other places of business. More cars are parked at home, and less money is exchanging hands.

As of this writing, roads in Washington, DC earn a 9% congestion rating. The average congestion in 2019 at comparable times was 46%. Although these numbers aren’t shocking, they do matter.

As China’s economy reopens, a daily glance at TomTom shows that congestion is returning to normal levels — at least on workdays. But at least an anecdotal level, weekend congestion was still lower than the historical average. That’s not surprising, especially when you factor in an earlier Mission Control update exploring post-pandemic consumer spending in China. While people are back to work, they’re not engaging in in-person shopping and eating out.

So, when things do ease up in the U.S. and the economy reopens, consider monitoring this traffic data. A return to historical congestion, especially outside of normal business hours, could be a great bullish indicator. Until then, keep a cautious eye on retailers and restaurants without a solid e-commerce presence.

If You’re at Home Wondering What’s Happening…

[Thursday, April 9, 3:40 p.m.]
Contributed by Andrew Taylor

InvestorPlace CEO Brian Hunt just recorded an urgent new 3-minute clip (in our empty Baltimore headquarters) about the crisis we’re in … and what he sees coming.

He believes that the coronavirus panic has created a handful of extraordinary financial opportunities for 131%, 3,041% or even 6,170% gains.

He asked InvestorPlace’s analysts how to capitalize on them … and their No. 1 best move to make right now.

Watch his video here.

Fuel Demand Crashes to a Multi-Decade Low

[Thursday, April 9, 3:27 p.m.]
Contributed by Sarah Smith

The U.S. Energy Information Administration, which tracks weekly energy consumption, reported that Americans used 5.1 million barrels a day of finished motor gasoline each day for the week ending April 3. While 5.1 million gallons may seem like a lot, it’s down 50% from comparable periods in other years.

Plus, according to the EIA and reporting from Barron’s, American demand for gasoline has not been lower since 1969. As a reminder, the American population is now 40% larger than it was then. And jet fuel consumption is dropping to levels from before 1981.

At least in the short term, this is bad news for energy stocks. But nothing so far in 2020 has been particularly positive for these battered names. The novel coronavirus is destroying demand, and an ongoing price war between Saudi Arabia and Russia is dropping crude oil prices. While a favorable resolution to the meeting of OPEC nations and their allies today could bring a bounce in oil prices, the demand headwind isn’t going away in the immediate future.

So what does this mean for investors? Are all names in the energy space ones to avoid? According to InvestorPlace analyst Neil George, that’s not the case. He’s looking for standout names, particularly companies in the pipeline and infrastructure segments. He believes these companies are less tied to day-to-day price changes and offer more critical services. Plus, their liabilities are just generally lower.

As he’s looking to buy energy stocks on the dip, here are four names he’s watching:

• Viper Energy (NASDAQ:VNOM)

• Enterprise Product Partners (NYSE:EPD)

• Magellan Midstream Partners (NYSE:MMP)

• Alerian MLP ETF (NYSEARCA:AMLP)

Oil Prices Flip Flop as OPEC Meeting Drags On

[Thursday, April 9, 2:54 p.m.]
Contributed by Sarah Smith

Crude oil prices are having quite the day on Thursday. Earlier reports highlighted that West Texas Intermediate was up 12%. Brent crude, the international benchmark for crude oil, was also up on the day. In a much-awaited virtual meeting of OPEC and its allies, oil-producing nations allegedly agreed to a cut of up to 20 million barrels per day.

After weeks of plunging crude prices and tensions between Saudi Arabia and Russia, that seemed like great news. But the meeting is dragging on, and details of the cuts remain unclear. How many millions of barrels will each nation cut? How long will the production cuts last?

As of this writing, West Texas is down over 8% to $23.07 per barrel. Brent is currently priced at $31.69 per barrel, down 3.5% on the day.

Boris Johnson Leaves Intensive Care on Thursday

[Thursday, April 9, 2:38 p.m.]
Contributed by Sarah Smith

When InvestorPlace.com General Manager Andrew Taylor reported that Boris Johnson, the United Kingdom prime minister, had been transported to intensive care at a London hospital, he cautioned that the news would be something investors watched closely.

As the first major world leader with a confirmed case of the Covid-19, the disease caused by the novel coronavirus, his health status was driving sentiment. And in a burst of good news Thursday, an official spokesperson announced that Johnson had been released from intensive care as his condition improved.

The major indices remain in the green on Thursday afternoon, no doubt bolstered by a rash of positive updates from around the world.

Disney Stock Is Up Thursday on Its Streaming Magic

[Thursday, April 9, 2:29 p.m.]
Contributed by Sarah Smith

Over the last few weeks of social distancing and stay-at-home orders, investors have been speculating on streaming stocks. They wondered if more time at home would translate to more paying subscribers. And on Thursday, Disney (NYSE:DIS) answered that big question.

In an update on Disney+ late Wednesday, investors learned that the service now has 50 million paying subscribers around the world. And boy, that gave DIS stock a little magic in intraday trading. Shares are now up over 4%.

As InvestorPlace Web Editor Nick Clarkson reported, Disney+ is now available in eight European countries and India. The service now has 8 million subscribers in India alone.

Will other streaming stocks have a similar fate? Roku (NASDAQ:ROKU) is up 5.5% as of this writing.

Airline Stocks Rally as Trump Weighs Bailout Details

[Thursday, April 9, 2:14 p.m.]
Contributed by Sarah Smith

As The Wall Street Journal reported Thursday, officials are briefing President Donald Trump on a plan to aid the airline industry, which is eligible for relief as part of the $2.2 trillion stimulus package.

Airlines were calling for $50 billion in grants and loans, as air travel plummets. Some airlines have already cut operating capacity by 90% for the summer months. While investors know some details of the plan, such as demands for airlines to cap executive pay, suspend buyback programs and cut dividends, there’s a lot that remains unknown. Results from Thursday’s meeting are sure to draw attention.

And is it time to buy? InvestorPlace’s Nicolas Chahine wrote yesterday that Delta Air Lines (NYSE:DAL) was certainly headed back up, causing him to recommend DAL stock. He said that in an election year, it is unlikely that Trump or any Democrat would let a U.S. airline go under.

Other investors aren’t so sure. After early details of the bailout emerged, InvestorPlace’s Todd Shriber said it was time to sell United Airlines (NASDAQ:UAL) on concerns over its allocation of cash. He isn’t the first to trouble over the amount of free cash flow airlines devoted to buybacks over the last decade.

Regardless of your feelings on the airline names, keep a watchful eye on the news. In intraday trading Thursday, DAL is up 6.8%. United Airlines stock is up 16.9% and American Airlines (NASDAQ:AAL) stock is up 13.9%.

Steven Mnuchin Says Economy Could Reopen in May

[Thursday, April 9, 1:51 p.m]
Contributed by Sarah Smith

This week has been filled with bold economic predictions. Larry Kudlow, the White House’s top economic advisor, said the economy could reopen in as little as four weeks. Yesterday, a plan concocted by President Donald Trump and his allies hinges on widespread antibody testing to reopen the economy in a similar time frame.

On Thursday, Treasury Secretary Steven Mnuchin added himself to that list of soothsayers. Mnuchin said that as early as May, or whenever Trump felt comfortable with the “medical” issues associated with the novel coronavirus, the economy could reopen.

From Mnuchin:

“[The administration is doing] everything necessary that American companies and American workers can be open for business and that they have the liquidity that they need to operate their business in the interim.”

Federal Reserve Embraces Junk Bonds in Bold Move

[Thursday, April 9, 1:24 p.m.]
Contributed by Sarah Smith

Earlier this week, InvestorPlace.com General Manager Andrew Taylor wrote that investors were getting bullish as the Federal Reserve began an unprecedented bond-buying spree. At the time, it was focusing on investment-grade corporate debt, and companies with appropriate ratings embraced the challenge.

As Axios’ Dion Rabouin reported, those with investment-grade ratings issued $220 billion of new debt in the last two weeks.

But on Thursday, Fed Chairman Jerome Powell expanded the $2.3 trillion stimulus package, offering investors more insight into his plan. A key takeaway from Thursday’s announcement is that the Fed will begin buying junk-rated debt, too. According to The New York Times, this move far surpasses anything the Fed attempted during the 2008 financial crisis.

This move comes after several big investors were pushing for a ratings expansion. Corporate borrowing is expanding, and credit agencies are slashing ratings. And as Quartz reporter John Detrixhe wrote, there’s never a good time for a wave of corporate defaults.

Detrixhe is quick to point out that there are moral concerns with the Fed supporting junk-rated bonds — will this decision be interpreted as an endorsement of companies that are simply not viable? But at the same time, he writes that a wave of defaults would mean further lost jobs now, and less jobs for workers to return to after the pandemic.

In response to the announcement, exchange-traded funds tracking such bonds jumped. The iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG) is up 6.3% and SPDR Bloomberg Barclays High Yield Bond ETF (NYSEARCA:JNK) is up 6.4% in intraday trading.

Legendary Investor Ray Dalio: Get Ready for Major Inflation

[Thursday, April 9, 11:18 a.m.]
Contributed by Sarah Smith

Legendary investor Ray Dalio has long been making the argument that cash is trash, sharing his thoughts on the topic months before the current pandemic. But with near-zero interest rates and the Federal Reserve’s new bond-buying program, he’s doubling down.

During a question-and-answer session on social media, Dalio said that measures taken to combat a recession will lead to major inflation. For that reason, he warns that a bet on the U.S. dollar is a dangerous one.

From Ray Dalio:

“I believe that increasingly there will be questions by bondholders who are receiving negative real and nominal interest rates, while there is a lot of printing of money, about whether the debt assets they are holding are good storeholds of wealth. I believe that cash, which is non-interest-bearing money, will not be the safest asset to hold.”

‘Millennial’ Stocks Are Hurting as Young People Lose Jobs

[Thursday, April 9, 11:12 a.m.]
Contributed by Sarah Smith

When news of the novel coronavirus first began circulating, young people largely felt safe. The earliest reports promised that only the elderly and otherwise immunocompromised were at risk. Others promised that for young, healthy Americans, it would be no worse than the common flu.

And while reports of terrifying symptoms — like lung failure in young patients — are increasing, perhaps the biggest danger to young people comes from the economy. As Vice reported earlier this week, 31% of survey respondents age 18 to 34 had lost their jobs. That compares to 22% of respondents age 35 to 49 and 15% of those 50 to 64.

From a long-term standpoint, these survey results pose major concerns. As Vice reports, young people who entered the job market during the recession of the early 1980s had higher mortality. Although much is uncertain about the current pandemic, similar concerns hold.

And right before this pandemic was an historic bull market. Before it became clear how many young people would lose their jobs, there was a sense that buying on the dip would allow even the youngest workers a chance to get in to the market at good prices. But as people lose their income, investing becomes less of a priority.

With those trends in mind, how are so-called “millennial” stocks doing? Investors had long been rallying behind names set to benefit from the purchasing power of millennials and Generation Z shoppers.

In January, InvestorPlace’s Will Ashworth took a look at seven stocks benefiting from “millennial money.” Names on the list, including Booking Holdings (NASDAQ:BKNG) and Shake Shack (NYSE:SHAK) have been hit particularly hard.

As the world returns to normal, these companies will be important to watch. Will they see a big rebound in investor interest? Or, will struggling young workers be out of the markets for years to come?

Buy Now While There’s Blood in the Streets

[Thursday, April 9, 10:40 a.m.]
Contributed by Sarah Smith

InvestorPlace analyst Matt McCall is confident about something that might sound a little harsh. The novel coronavirus crisis will create millionaires. And history backs him up. Just look at Baron Rothschild, who minted the phrase “the time to buy is when there’s blood in the streets.” Rothschild started buying when everyone else was selling during the Battle of Waterloo, and he made a fortune.

McCall is using the current volatility — or the blood — to find long-term opportunities. His Crisis and Opportunity portfolio finds stocks that benefit from the volatility and are ideal for long-term investors.

Does making a fortune from the comfort of your home sound appealing? Read the rest of McCall’s take on getting into the market now here.

Markets Surge Higher on Fed Stimulus Details

[Thursday, April 9, 10:20 a.m.]
Contributed by Luis Hernandez

Major indices climbed higher at the opening bell Thursday morning as the Federal Reserve released new details outlining the $2.3 trillion stimulus package.

According to the report from CNBC, the economic money injection is geared toward bolstering small to mid-sized companies and local governments impacted most by the pandemic.

Working through banks, the Fed will offer four-year loans to companies with up to 10,000 employees and will buy municipal bonds from states with the most populated cities and counties.

Sentiment seems to be lifting around the globe as reports indicate that strict social distancing measures are working, leading to a slowdown in some of the worlds most ravaged hotspots.

Optimism is evident. The Dow Jones Industrial Average has rebounded more than 30% from last month’s lows.

Have we seen a market bottom? Only time will tell. Stay tuned into InvestorPlace Mission Control as we continue to keep you up to date on all the latest developments.

Fed Updates Send Stocks Higher Thursday Morning

[Thursday, April 9, 9:31 a.m.]
Contributed by Sarah Smith

Each morning this week has been a bit puzzling. What’s sending stocks higher in such a chaotic week? Well, the new figures for unemployment claims came in at 6.6 million, lower than the 7 million many expected. But the Federal Reserve also provided an update to its so-called Main Street Lending Program. It will now work with the U.S. Department of Treasury to scale $75 billion into $600 billion of loans to small and medium-sized businesses.

Whatever the reason for optimism, the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite opened in the green.

• The S&P 500 opened higher by 1.20%

• The Dow Jones Industrial Average opened higher by 1.38%

• The Nasdaq Composite opened higher by 0.97%

Jobless Claims Report Beats Expectations

[Thursday, April 9, 8:53 a.m.]
Contributed by Sarah Smith

A Thursday morning release from the U.S. Department of Labor shows that for the second week in a row, over 6.6 million Americans filed for unemployment benefits. According to the report, 6.61 million Americans filed for the week ending April 4. After the Department of Labor revised the figure for the week prior, the newest numbers show a slight week-over-week drop in claims.

While Americans are still losing their jobs at an unprecedented rate, many analysts were calling for a figure of 7 million or greater. Stock futures began to turn around after the 8:30 a.m. release, perhaps on a sense of optimism from the slight beat.

This weekly number is sure to affect trading today, and investors will be watching every week for updates.

Apartment Renters Are Starting to Miss Payments

[Wednesday, April 8, 4:50 p.m.]
Contributed by Sarah Smith

Earlier this week, InvestorPlace.com General Manager Andrew Taylor detailed how the CARES Act is creating a time bomb in the mortgage world. He wrote that Americans with government-backed mortgages will be able to delay monthly payments with ease, but the bill did not provide any relief for those who hold the loans.

Today, reporting from Axios reveals another hole in the housing market. Approximately one-third of all apartment renters failed to make April payments. As Fadel Allassan writes, a collection of federal and local laws should protect many of these renters from eviction. But the problem doesn’t stop there.

Just as with the mortgage scenario, the apartment situation could snowball. Unpaid rent could lead to mortgage defaults, “terminating investments in bonds backed by those mortgages.” Additionally, real estate investment trusts that specialize in apartments are struggling.

As of April 8, top apartment REITs Equity Residential (NYSE:EQR) and Mid-America Apartment Communities (NYSE:MAA) are down 19% and 16% year-to-date, respectively. Both stocks are up on the day.

Federal Reserve Sees 2 Possible Economic Outcomes

[Wednesday, April 8, 4:26 p.m.]
Contributed by Bret Kenwell

Today the Federal Reserve released the minutes from its March 15 Federal Open Market Committee (FOMC) meeting. While the general action of the meeting — to slash interest rates to near zero — is not surprising, the minutes do show one key thing.

Members of the Federal Reserve see two distinct outcomes of the novel coronavirus. One camp believes that we will see an economic recovery in the second half of 2020. The other camp does not see room for recovery until 2021. Regardless of which camp is right, the Fed will maintain near-zero interest rates until such a recovery occurs.

As the pandemic progresses, it’s safe to say investors are rooting for those in the first camp to win.

Stocks Close Higher Wednesday on Pandemic Optimism

[Wednesday, April 8, 4:01 p.m.]
Contributed by Sarah Smith

By the close of trading Wednesday, many investors would agree that this week feels like a lifetime. Market sentiment surrounding the novel coronavirus pandemic is swinging back and forth. In one report, the numbers from New York and Italy look great. In another, things are worsening, and we’re seeing one-day highs in new cases and total deaths.

Wednesday is the middle of the week President Donald Trump warned should be one of the worst for those in the U.S. Dr. Anthony Fauci, the nation’s top infectious disease specialist, says there is reason for optimism looking ahead. And in unrelated news, Vermont Sen. Bernie Sanders — who represented a threat to Wall Street — dropped out of the presidential race.

There’s certainly a lot of news out there that’s influencing trading. The stars aligned Wednesday as the S&P 500, the Dow Jones Industrial Average and Nasdaq Composite all closed in the green.

• The S&P 500 closed higher by 3.38%

• The Dow Jones Industrial Average closed higher by 3.41%

• The Nasdaq Composite closed higher by 2.58%

Wells Fargo Sees an Unlikely Reprieve

[Wednesday, April 8, 3:50 p.m.]
Contributed by Sarah Smith

The world is changing in unforeseen and unprecedented ways. Topics that consumed investors in 2019 or early 2020 now feel irrelevant. And the pandemic is also creating strange opportunities for corporations and consumers alike.

In today’s news, scandal-burdened Wells Fargo (NYSE:WFC) is seeing an unlikely reprieve. After the bank agreed to a $3 billion settlement, the coast was not all clear. The Federal Reserve imposed a $1.95 trillion asset cap, designed to prevent Wells Fargo from growing its balance sheet. But now, in an effort to speed up the small business loan process, the Fed is reversing course.

In “narrow” modifications to its restrictions on Wells Fargo, the Fed will now allow the bank more leeway in lending. However, it must return any proceeds to the U.S. Treasury Department or non-profits that serve small businesses. WFC stock is up 4.2% in intraday trading.

Although it the news does little to Wells Fargo’s overall story, perhaps it shows that the post-pandemic world will look very different. Investors will have a whole new host of things to worry about, and Wells Fargo’s history of scandals just may not make that list.

Pelosi Continues to Push for More Emergency Aid

[Wednesday, April 8, 3:31 p.m.]
Contributed by Sarah Smith

On Tuesday, news broke that House Speaker Nancy Pelosi was recommending an additional $1 trillion stimulus package, intended to provide additional unemployment benefits, among other forms of relief. On Wednesday, she joined Senate Minority Leader Chuck Schumer in pushing for $500 billion in “emergency” aid related to the novel coronavirus.

The proposal would provide another $250 billion in small business loans, something President Donald Trump has already expressed his support for. It would also include $100 billion for hospitals and health centers and $150 billion for state and local governments. Lastly, the proposal would provide a 15% increase to the existing maximum for the Supplemental Nutrition Assistance Program.

Pelosi and Schumer clarified that this “emergency” aid would then be followed by a second CARES Act, which would expand on the provisions of the first.

Microsoft Stock Is the Real Video Conferencing Winner

[Wednesday, April 8, 3:18 p.m.]
Contributed by Sarah Smith

Zoom Video Communications (NASDAQ:ZM) in many ways has been a winner of the novel coronavirus. Out of nowhere, families, school systems and corporations have switched to using its video conferencing platform as the pandemic accelerated remote work and distance learning.

But users of Zoom may be some of the losers, according to new reporting from The New York Times. Updates to Mission Control this week have detailed how analysts are turning bearish on ZM stock, thanks to its sky-high valuation. But companies, like Elon Musk’s SpaceX, and school systems are now souring on the platform. Why?

The New York Times highlights its privacy and security flaws, including “hijacked” webcams and “Zoombombings” that disrupt sessions. Others have raised concerns about the data the company collects on its users.

So, acknowledging that remote work is a major trend, what is an investor to do? ZM stock poses valuation and ethical concerns. Well, InvestorPlace analyst Louis Navellier is bullish on Microsoft (NASDAQ:MSFT) stock. Its Teams and Skype offerings are solid alternatives to Zoom. Plus, Microsoft has more robust security features, which are critical for businesses that may be discussing trade secrets or virtual classrooms of minors.

As Navellier writes, treat Zoom’s failings as a big opportunity for Microsoft and MSFT stock.

Consider Adding Walmart Stock to Your Grocery List

[Wednesday, April 8, 2:54 p.m.]
Contributed by Sarah Smith

We’ve all seen the viral videos and read the news stories. Americans are hoarding consumer staples, particularly toilet paper and disinfecting products. Grocery shopping, once a tedious errand, is now the focal point of the U.S. economy. And many think grocery store stocks are hot buys right now.

Citi analysts are tapping Walmart (NYSE:WMT) stock, as analyst Paul Lejuez says it’s Walmart’s “time to shine.” He sees at least 15% upside from its current share price. Lejuez is new to covering WMT stock, but he’s maintaining the firm’s “buy” rating and giving shares a $140 price target.

From Lejuez, the Citi analyst (subscription required):

“This is WMT’s time to shine. When we think about what has been working in general within the U.S. retail landscape (and what will likely continue to work), we would characterize it as online, off-mall, convenience and value. WMT checks all four boxes.”

And InvestorPlace.com’s Nicolas Chahine is also adding WMT stock to his grocery list, inspired by the hoarding. Evaluating Walmart on a price-earnings basis, he concludes that it is a relatively cheap grocery name, although he prefers Costco (NASDAQ:COST) stock. Chahine gives both “buy” recommendations.

Antibody Testing Could Help Jump Start the Economy

[Wednesday, April 8, 2:38 p.m.]
Contributed by Sarah Smith

Yesterday, President Donald Trump’s top economic advisor Larry Kudlow said that the White House could begin reopening the economy in as little as four weeks. As nationwide social distancing extends through April 30, and many states have imposed farther-reaching stay-at-home orders, his announcement drew skepticism.

But reports Wednesday shed a little more light on Trump and Kudlow’s plan. Widespread antibody testing, which checks for previous exposure to the novel coronavirus and immunity, could allow Americans to safely return to work. New York Gov. Andrew Cuomo has also expressed interest in making antibody testing available to New Yorkers.

Is this feasible? Barron’s reporter Josh Nathan-Kazis writes:

“Those tests are just beginning to become available, and while they have been the subject of enormous attention in recent days, scientific questions remain. It isn’t clear what volume of antibodies to the virus that causes Covid-19 need to be present for a person to be immune from future infection, or how long that immunity lasts.”

If such testing is available, it could remove some of the fear from reopening the economy. Investors will surely be waiting for further guidance from the White House in the coming days, as pandemic sentiment continues to drive the stock market.

How the Coronavirus Is Impacting Stock Prices

[Wednesday, April 8, 2:22 p.m.]
Contributed by Andrew Taylor

Few publishers marry data and analysis better than Axios.

This morning Axios markets editor Dion Rabouin published a quick-but-slick chart that shows the daily value of the S&P 500, with key developments in the coronavirus outbreak superimposed on the chart.

There’s perhaps nothing ground-breaking in the chart, but it’s nonetheless a nice illustration of the way stock markets failed to accurately understand the brewing danger as data about the seriousness of the virus came out of China and from the World Health Organization in the first couple of months of the year.

InvestorPlace.com’s own coverage also often failed to understand the gravity of the situation we were facing, though InvestorPlace.com Market Strategist William Roth did warn investors on Jan. 28:

“A growing list of Chinese cities are effectively quarantined as officials scramble to limit the spread of the easily transmitted disease. The fear is that global travel bans are sure to follow, further weighing on global economic activity.

Moreover, thinking though this as a hypothetical, a global pandemic would leave central bankers — the deus ex machina of this longest-ever bull market in history — powerless to do anything. If only the Federal Reserve could print vaccines, you know?

That risks spooking stocks in a way that investors haven’t felt in years. And as a result, many well-known and widely-held stocks are beginning to roll over.”

At the time, William Roth warned investors to sell Bank of America (NYSE:BAC), Apple (NASDAQ:AAPL), Exxon Mobil (NYSE:XOM) and Disney (NYSE:DIS). We now know that all were the right call.

At the same time, much of the coverage from InvestorPlace.com and other sites remained overly rosy for too long. Hindsight makes for very clear vision, of course. But at the very least, it’s a cautionary tale. The Axios piece is worth a quick read.

Pot Usage Hit All-Time ‘Highs’ in March

[Wednesday, April 8, 2:12 p.m.]
Contributed by Sarah Smith

Remember when investors loved cannabis stocks? The daily movements in any of Canada’s darlings — think Aurora Cannabis (NYSE:ACB), Canopy Growth (NYSE:CGC) and Tilray (NASDAQ:TLRY) — made headlines. Companies ousted CEOs, regulatory boards worried about illegal growing and investors rooted for international expansion.

But then the pandemic happened. Overnight, cannabis stocks, which had long been struggling, lost relevancy. There are still long-term bulls, like InvestorPlace analyst Matt McCall. Many more believe the U.S. is right around the corner from legalizing marijuana at the federal level.

Still, ACB stock is not a top priority. But a new report from Cowen analysts could be changing that. According to the report, pot usage hit an all-time high in March, pun fully intended. As more consumers were stuck at home, apparently more adults felt inclined to try a cannabis product.

In the most recent survey, 33% of consumers admitted to trying cannabis. The 2019 average for the survey was 12.5% of consumers. While increased use doesn’t guarantee legalization, it shows the addressable market for the major pot companies is increasing. One thing to note is that Cowen analysts warned decreasing job security could see the number drop again as the lockdown drags on.

Shares of Aurora Cannabis stock are up 4.2% and shares of CGC are up 1.5%. Tilray is seeing 11.5% gains and Cronos (NASDAQ:CRON) is up 8.4% in intraday trading.

Focus on the ABCs of Investing During This Lockdown

[Wednesday, April 8, 1:16 p.m.]
Contributed by Sarah Smith

Surely, you’ve heard that an unprecedented number of Americans are stuck at home with an unusual amount of time on their hands. Some are making bread, others are learning yoga or getting crafty. But for those sitting by the computer, watching portfolios rise and fall with the market, here’s another idea.

In an April report from the American Association of Individual Investors, Craig Israelsen writes that adults should use this opportunity to teach their kids and grandkids all about investing. It might not seem all that fun, but it can be oh so rewarding.

Israelsen recommends starting with a basic incentive. Show your “students” that getting into the market early makes a massive difference on their retirement income. For example, a 25-year-old worker who begins investing 6% of their $35,000 annual income will have over $500,000 when they hit 65. This assumes that income increases 3% each year and the portfolio earns an average of 6% each year.

With the same assumptions, a worker who starts saving at 45 will only have about $187,000 at age 65. That’s a huge difference.

From there, get creative. InvestorPlace.com offers a “wealth” of educational resources. Chances are you’ll learn something new yourself. And after days of binge-watching TV, focusing on money-making strategies is sure to boost your spirits.

These 15 Dividends Look Very Risky Right Now

[Wednesday, April 8, 12:18 p.m.]
Contributed by Sarah Smith

As with any grouping of stocks, some dividend names look particularly well suited to surviving the pandemic-induced crisis. Others don’t. According to analysts from Credit Suisse, companies with dividend yields above 3% and negative cash flows are most at risk.

From analyst Michael Lerner (subscription required):

“We believe investors should … avoid high dividend payers with stretched balance-sheets, and focus on businesses where dividend payments are sustainable and the icing on the cake of an otherwise strong fundamental story.”

Here’s a look at 15 companies Credit Suisse thinks are most at risk of slashing or suspending their dividends.

Occidental Petroleum (NYSE:OXY) Carnival (NYSE:CCL) Royal Caribbean (NYSE:RCL) Halliburton (NYSE:HAL) Exxon Mobil (NYSE:XOM) Valero Energy (NYSE:VLO) Darden Restaurants (NYSE:DRI) Chevron (NYSE:CVX) PPL (NYSE:PPL) Delta Air Lines (NYSE:DAL) Boeing (NYSE:BA) CenterPoint Energy (NYSE:CNP) OGE Energy (NYSE:OGE) ConocoPhillips (NYSE:COP) Edison International (NYSE:EIX)

Bernie Sanders Drops Out of the Presidential Race

[Wednesday, April 8, 11:33 a.m.]
Contributed by Sarah Smith

In news that is sure to hit Democrats around the country, Vermont Sen. Bernie Sanders dropped out of the presidential race. In recent weeks, his performance in primary elections has vastly lagged that of former Vice President Joe Biden.

But for many investors, this could add a bit of confidence to trading. Long before the pandemic, Wall Street feared that a Sanders presidency would threaten major industries, like tech, healthcare and defense. Now though, a race between Biden and President Donald Trump poses less threats to existing businesses.

Although the election seems far away in a pandemic-focused world, investors are sure to take note of Sanders’ move. Watch the major indices today for any reflection of his decision.

The Coronavirus Can’t Stop Biotech Stocks

[Wednesday, April 8, 11:05 a.m.]
Contributed by Sarah Smith

InvestorPlace analyst Matt McCall has long been bullish on biotech stocks. Long before the pandemic, he picked Aimmune Therapeutics (NASDAQ:AIMT) for his entry in InvestorPlace.com’s Best Stocks for 2020 contest. At the time he said that 2020 would be the Year of Biotech.

Certainly a lot has changed since then, but many biotech stocks are holding strong. And McCall just wrote that the novel coronavirus is creating big buying opportunities for long-term investors.

What is he looking at for evidence? While, so far this year the S&P 500 is down more than 17% while the VanEck Vectors Biotech ETF (NASDAQ:BBH) is down closer to 5.6%. It’s one of the top-performing sectors right now. From McCall:

“These stocks have shown relative strength in the bear market, and the current crisis gives us a glimpse of the innovative breakthroughs coming our way … including efforts to fight the coronavirus.”

Read the rest of McCall’s thoughts here.

Stocks Open Higher on Wednesday

[Wednesday, April 8, 9:31 a.m.]
Contributed by Sarah Smith

A choppy day of trading on Tuesday left all of the major indices in the red. Investors are largely relying on updates about the novel coronavirus to determine sentiment. Tuesday morning, things looked OK, and stock futures were up. Tuesday afternoon, investors learned that New York saw its biggest one-day spike in new cases.

Updates from key states like New York and the status of the United Kingdom’s Boris Johnson will continue to be important.

While it’s not clear what news investors are eyeing Wednesday morning, the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite all opened higher.

• The S&P 500 opened higher by 1.07%

• The Dow Jones Industrial Average opened higher by 1.07%

• The Nasdaq Composite opened higher by 1.13%

Amazon Won’t Kill American Retail, But the Coronavirus Will

[Tuesday, April 7, 4:55 p.m.]
Contributed by Andrew Taylor

For years, people have predicted that internet retailers will kill American retail. According to that particular line of logic, Amazon (NASDAQ:AMZN) was at the front of the pack, pitchfork in hand, aiming to kill brick-and-mortar retailers throughout our land.

In fact, the phenomenon was so popular in American culture that it had its own catchy nickname: the “retail apocalypse.” The term retail apocalypse even has its own Wikipedia page, which proclaims that U.S. retailers announced 9,302 store closings last year, a 59% jump from the prior year.

Americans are holed up in their homes as we do our best to stay healthy and avoid passing germs. For some people, it’s legally dubious whether we’re even allowed to shop in some stores. For everyone, entering a store may imperil our health.

Retail stores will get crushed.

By the end of 2020, those figures from last year will look like child’s play. This year will bring a retail apocalypse unlike anything since the Great Depression.

Retailers with weak balance sheets and feeble internet sales will drop like flies, and the carnage will start within weeks. Louis Navellier, working with his research staff at InvestorPlace, has developed a list of seven retail stocks investors should avoid right now.

You may be surprised by some of the names on the list:

• Gap (NYSE:GPS)

• Kohl’s (NYSE:KSS)

• Nordstrom (NYSE:JWN)

• Companhia Brasileira de Distribuicao Grupo Pao de Acucar (NYSE:CBD)

• Walgreens Boots Alliance (NASDAQ:WBA)

• Tapestry (NYSE:TPR)

• Ulta Beauty (NASDAQ:ULTA)

In the end, we were all wrong for years. It won’t be Amazon.com that killed retail. It’ll be the coronavirus.

Forewarned is forearmed.

Muddy Waters Is Back With Another Short Report

[Tuesday, April 7, 4:22 p.m.]
Contributed by Bret Kenwell

In January, notable short seller Muddy Waters printed its allegations against Luckin Coffee (NASDAQ:LK), and many thought the firm was absolutely bananas at the time. But to the detriment of several investors, Muddy Waters was proven correct last week. A regulatory filing showed that Luckin’s COO, among other key employees, had faked $310 million in sales. That’s a lot for a high-growth company.

On Tuesday, Muddy Waters found a new target — iQiyi (NASDAQ:IQ). Commonly known as the Netflix (NASDAQ:NFLX) of China, investors have liked iQiyi for its exposure to the Chinese market and streaming offerings. But similarly, Muddy Waters believes the company is fraudulently reporting its users, among other metrics.

MW is short $IQ because we believe it’s a fraud. We assisted @WolfpackReports with comprehensive research into IQ. MW believes that IQ fraudulently and materially overstates its users, revenues, acquisition consideration, and value of its “barter” content. https://t.co/GyNPNjxR7T

— MuddyWatersResearch (@muddywatersre) April 7, 2020

Although the stock dropped in intraday trading, shares closed high by more than 3%.

Stocks Trim Gains in Tuesday Trading

[Tuesday, April 7, 4:01 p.m.]
Contributed by Sarah Smith

Well, after Monday’s impressive rally and a strong start to trading on Tuesday, stocks are trimming their gains. Many believed that the rally started on news that deaths were decelerating in New York and Italy, and that trend continued into Tuesday morning. But then, New York Gov. Andrew Cuomo reported 731 new cases on Tuesday, the state’s largest one-day increase.

That wiped a bit of confidence out of the market to say the least. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite ended the day in murky water.

• The S&P 500 closed lower by 0.18%

• The Dow Jones Industrial average closed lower by 0.15%

• The Nasdaq Composite closed lower by 0.33%

REITs Are Worth a Look Here

[Tuesday, April 7, 3:49 p.m.]
Contributed by John Jagerson and Wade Hansen

The storage business is said to thrive off the “four Ds:” Divorce, Downsizing, Dislocation and Death. It’s looking like we will see plenty of those during the next few months.

We don’t want to minimize the problems in the current economic environment, but we also don’t want to miss a good opportunity to maximize the potential returns in our Strategic Trader portfolio.

The average storage company is organized as a real estate investment trust (REIT), which is a special kind of stock that passes along most of its net income to shareholders in the form of ordinary dividends. This makes these stocks attractive during a period of low interest rates like the one we are experiencing right now.

Some Auto Insurers Offer Coronavirus Refunds

[Tuesday, April 2, 3:38 p.m.]
Contributed by Sarah Smith

So, as non-essential workers sit at home, what happens to their cars? Yes, there will still be some driving, especially to grocery stores and for other essential errands. But will anyone really be driving enough to warrant their full auto insurance payments?

That logic is what has two insurers, Allstate (NYSE:ALL) and American Family Insurance, refunding payments. As InvestorPlace’s William White reported, Allstate will return $600 million to customers in order to fairly account for decreased travel. American Family Insurance is offering a $50 refund per insured car.

As consumers’ pocketbooks run empty, any money back is a small victory. While White says other insurers have yet to hop on the refund bandwagon, it’s likely others could follow suit.

Will the Stock Market Rally Be Short-Lived?

[Tuesday, April 7, 2:15 p.m.]
Contributed by John Kilhefner

Stocks have rallied for a third time in four days, with major indices on track for the highest close in nearly a month … but are investors getting ahead of themselves?

Over at MarketWatch, Nigam Arora thinks greed is clouding investors’ vision, and that the rally in stocks could be short-lived. Arora’s been right before, noting on Jan. 22 that the novel coronavirus could impact markets:

“Investors have said there was no warning of the coronavirus. That’s untrue. On Jan. 22, The Arora Report’s call was that the coronavirus could cause a drop in the market. After finding that investors continued to buy stocks, I wrote on Jan. 30 that arrogance and greed among momentum investors ‘may prove to be dangerous for investors.’ Other than a potential cure, the course of the stock market rally will depend on the behavior of naked investors.”

Arora points to the rally in Big Tech as proof positive that investors are letting current optimism cloud their judgment. The buying in Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) appears to signal that investors are shrugging off the coronavirus much too early.

“Is the stock market getting divorced from reality? There are no vaccines or treatments for the coronavirus. It is true that there is a vaccine for the flu, and Tamiflu helps some people. The coronavirus is much more dangerous than the flu. In spite of massive efforts, there is no cure or vaccine for even the common cold. The HIV cocktail is a great success but it took many years for scientists to develop it. Thus, the stock market is clearly divorced from reality.”

Unless a cure is presented, argues Arora, the rally in stocks will be short-lived.

What Airbnb’s Story Means for the IPO Market

[Tuesday, April 7, 2:00 p.m.]
Contributed by Sarah Smith

Investors spent much of 2019 waiting for short-term rental company Airbnb to make its public debut. But for one reason or another, its IPO kept getting pushed back. Before the pandemic, one of the most recent concerns was safety. On Halloween, five individuals died at a so-called “party house.” In response, Airbnb set out to make sweeping changes to clear its image (subscription required).

But then, the pandemic hit. People stopped traveling, and the company was thrust into its biggest storm yet. A hotly awaited IPO became a nightmare, and some wondered if this was the end. The novel coronavirus certainly brought economic pain to several of the site’s hosts.

News on Monday that Airbnb had secured $1 billion in additional funding should help answer some questions. With that money, the short-term rental company is likely to weather the storm, although the impact on the travel and leisure business is likely to be longer term.

For investors, it’s one key example of how the IPO market will change moving forward. This once-hot company will have a lot to work through when the storm clears. When it will be ready to take the stage again? Plus, DoorDash, Warner Music Group and Albertsons are other companies facing IPO decisions amidst the volatility.

The Coronavirus Is Forcing Drugmakers to Halt Trials

[Tuesday, April 7, 1:32 p.m.]
Contributed by Sarah Smith

Biotech stocks have always drawn investors’ interest. They are truly high-risk, high-reward plays that capitalize mostly on new drugs or expanded drug licenses. For clinical-stage companies — those whose pipelines are full of unapproved treatments — a single positive trial result can mean 100%-plus gains. Just look at what happened recently with Immunomedics (NASDAQ:IMMU). IMMU stock almost doubled on news that trials of its breast cancer drug showed “compelling evidence of efficacy.”

Investors who specialize in this space have a few new opportunities driven by the novel coronavirus. Legacy drugmakers are recycling compounds, hoping to find a winner. For instance, Gilead Sciences (NASDAQ:GILD) is repurposing a failed Ebola treatment, remdesivir. And startup biotech names are busy researching new vaccines, drugs and treatment-related tech.

But outside of these one-time opportunities, how is the pandemic impacting biotech stocks? In an interesting report from Biopharma Dive, Ben Fidler and Nami Sumida take a look at clinical trials that the coronavirus is disrupting.

Social distancing and stay-at-home orders are keeping employees from being together to run trials. Other companies are pivoting away from, say a cancer treatment, to focus on Covid-19 cures. According to Fidler and Sumida, more than 48 companies have now reported pandemic-related delays.

Because these clinical trials are so closely tied to stock-price movement, it’s hard to say what the near term will look like for biotech investors. However, when clinical trials resume, there could be a huge uptick in interest in the space.

7 Digital Ad Stocks to Buy for a Big Rebound

[Tuesday, April 7, 12:35 p.m.]
Contributed by Sarah Smith

In a Mission Control update last week, InvestorPlace.com General Manager Andrew Taylor shared how companies were facing a “seismic shift” in ad spending, based on reporting from The New York Times.

This week, InvestorPlace’s Luke Lango is ready with another take. Yes, he acknowledges that a decrease in ad spending is not going to be pretty in the second quarter. Investors are right to worry about digital ad stocks, especially in the near term.

But Lango says this near-term pain is perfect for long-term investors. Digital ad companies are seeing record-high engagement as more and more consumers are stuck at home, scrolling social media platforms or watching TV. And when economic trends return to normal, Lango thinks this engagement will convert to record-high sales. From Lango:

“Long story short, while second-quarter 2020 numbers will be awful in the digital advertising world, second-half 2020 numbers could be quite good. Most digital ad stocks are down about 50% from recent highs. They are priced for bad Q2 numbers. But they are not priced for good second-half numbers.”

Here are the seven digital ad stocks he’s recommending you buy right now:

• Facebook (NASDAQ:FB)

• Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL)

• Snap (NYSE:SNAP)

• Pinterest (NYSE:PINS)

• The Trade Desk (NASDAQ:TTD)

• Roku (NASDAQ:ROKU)

• Amazon (NASDAQ:AMZN)

3 Retail Stocks That Won’t Stop Growing Any Time Soon

[Tuesday, April 7, 11:35 a.m.]
Contributed by Christopher Skokna

InvestorPlace analyst Eric Fry took a drive this weekend — and in today’s Smart Money, he shared what he saw. “The retail economic impact of the coronavirus pandemic was clear,” he writes. “Strip malls look something like a piano keyboard. Takeout joints and drugstores are as bright and busy as ever … but shoe stores, nail salons and barbershops are shuttered. Malls are closed … and I bet more than a few won’t ever reopen. Grocery stores, on the other hand … well, there’s a reason I’m having mine delivered instead of heading into that mess. Highways and major roads are eerily uncongested, but delivery trucks are clogging side streets.”

While it’s clear that the pandemic is causing tectonic shifts for the retail economy, it’s not obvious yet which of those shifts will last after the threat passes. One safe bet, Eric writes, is that retailers and other corporations will further their use of robotics, artificial intelligence and other technologies to automate as much as they can in order to mitigate the risks from the next pandemic.

So in today’s Smart Money, Eric reveals three retail stocks that he believes will see their fortunes rise thanks to both the coronavirus present — and their technology-focused future. Click here to see his recommendations.

Pelosi Proposes New $1 Trillion Stimulus

[Tuesday, April 7, 11:12 a.m.]
Contributed by Sarah Smith

After backing away from a proposed infrastructure plan, House Speaker Nancy Pelosi is now calling for an additional $1 trillion stimulus package.

Pelosi’s pivot is likely a reflection of last week’s economic reports, which showed 10 million Americans had filed for unemployment benefits in two weeks. Her new plan would provide additional direct payments, resources for food stamps, increased unemployment benefits and payroll relief.

One catch is that both the House of Representatives and the Senate will not be back in session until April 20. Additionally, President Donald Trump’s social distancing order is in effect until April 30. However, Pelosi is still determined to see her plan pass by the end of the month. For investors, it will be important to watch how the markets react to these additional measures.

Larry Kudlow Says the U.S. Economy Could Reopen Soon

[Tuesday, April 7, 10:51 a.m.]
Contributed by Sarah Smith

President Donald Trump’s top economic advisor had a shocking message Tuesday. He believes the White House could begin urging Americans to reopen the economy in the next four to eight weeks.

As models of the novel coronavirus show it continuing to have an impact through the summer — or perhaps even the fall — of 2020, this news comes as a surprise. But the advisor, Larry Kudlow, is confident that the deceleration of deaths in New York is a good sign.

A shuttered U.S. economy is causing havoc for businesses of all sizes. Although many are afraid of the pandemic, many Americans too are fearful of long-lasting economic impact. Investors will be watching to see how the White House moves forward on this action item.

Exxon Mobil Just Emptied Its Gas Tank

[Tuesday, April 7, 10:33 a.m.]
Contributed by Sarah Smith

In many ways, Exxon Mobil (NYSE:XOM) just became the newest victim of the oil price war. In case you need a refresher on the basics, demand for oil is practically nonexistent as economies around the world are shuttered. Then, after a nasty spat, Saudi Arabia challenged Russia to a full-blown price war as it flooded the markets with cheap crude.

As cheap crude and lowered demand destroys the industry, Exxon Mobil today announced that it would slash its capital spending for 2020 by 30%. Yes, its dividend is safe for now. But that sort of spending cut bodes poorly in a world where many believe oil is yesterday’s news.

Earlier this week, InvestorPlace analyst Louis Navellier summed it up nicely. There’s just not much left in Exxon Mobil’s tank. Even with the possibility of a new oil deal on the table, he doesn’t see much to like.

It’s safe to say there’s just too much bad news in this space. Don’t get suckered in by the black gold now.

Did We Hit the Bottom? Jeff Saut Thinks So.

[Tuesday, April 7, 10:10 a.m.]
Contributed by Sarah Smith

Many folks at InvestorPlace aren’t interesting in calling a bottom — and for good reason. It’s hard to perfectly time it, and investors can miss out on big opportunities waiting for the market to sink lower. With that said, it’s still important to know what others are saying.

On CNBC’s “Squawk Box,” veteran market strategist Jeff Saut said that the market had already found a bottom. That’s right, he thinks the S&P 500 hit a bottom on March 23 and is headed higher. He even thinks that we will see the broad index gain 6% this year from its all-time highs.

From Saut (subscription required):

“Last week, our models turned positive again and we started to recommit cash. If there is a cure for the virus or a vaccine for the virus, those [S&P 500] lows are not going to be retested.”

Stocks Look to Continue Monday’s Big Gains

[Tuesday, April 7, 9:31 a.m.]
Contributed by Sarah Smith

After Monday’s impressive stock market rally, are investors in for a second day of gains? That’s what it looks like as all major indices opened higher on Tuesday by at least 2.5%. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite are certainly starting the day off on the right foot.

• The S&P 500 opened higher by 3.21%

• The Dow Jones Industrial Average opened higher by 3.58%

• The Nasdaq Composite opened higher by 2.76%

Beware This Ticking Time Bomb in the Mortgage Market

[Tuesday, April 7, 9:02 a.m.]
Contributed by Andrew Taylor

There’s a ticking time bomb in the mortgage market, and everyone who owns a home, wants to own a home, cares about housing in America or holds stocks in a wide variety of industries that support home owners should be concerned.

According to this article from CNBC, the federal government created the perfect tinderbox for disaster when it quickly pushed through legislation intended to help homeowners who can’t make payments on their mortgages. Under the CARES Act, which intends to limited damages from the coronavirus outbreak, homeowners with government-backed mortgages can delay their monthly mortgage payments with minimal difficulty.

As well-meaning as that legislation may have been, apparently it ignored the other side of the equation: Those who hold these loans have to continue servicing them to their bondholders. In other words, no cash will be coming in to the lenders if a homeowner elects to delay his mortgage payments, but cash will still be due to holders of their notes.

That’s a recipe for disaster for mortgage holders.

This outcome was likely unintended.  After all, as legislation gets pushed through and passed into law quickly, many consequences are unintended.

In a worst-case scenario, the mortgage market completely seizes up, as lenders will not have cash available for new loans, and may run out of money to service existing mortgages. The list of damaged industries would be a mile long if this happens. On top of that list, of course, would be homebuilders like D.R. Horton (NYSE:DHI), Lennar (NYSE:LEN) and PulteGroup (NYSE:PHM); construction materials companies like Vulcan Materials (NYSE:VMC) and Martin Marietta Materials (NYSE:MLM); and retailers like Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW).

Mortgage companies are known to have first-rate lobbying teams in Washington, and it’s reasonable to expect that they’ll quickly lobby Congress to alleviate this pinch-point in the CARES Act. If you hold stocks that might be impacted, pay close attention. It’s possible Congress fails to act, and the mortgage market starts to sputter. Be warned.

Consumers Expect Stocks to Be Higher in a Year

[Monday, April 6, 4:57 p.m.]
Contributed by Andrew Taylor

File this under, “Things I didn’t expect to see today.”

The Federal Reserve Bank of New York conducts a monthly study called the “Survey of Consumer Expectations.” Today the bank released figures for March.

Buried in a mountain of interesting data is a real gem.

According to that survey, 47.7% of people surveyed predict that U.S. stocks prices will be higher one year from now. That’s up from 42.5% one month earlier, and 40.4% in December. In fact, it’s the highest reading that particular question has seen in its lifetime, which dates back to 2013.

Source: Chart courtesy of the Federal Reserve Bank of New York

There are two distinct ways to interpret this data. One school of thought believes that bear markets can’t end on optimism. Another line of thinking acknowledges that this market dip is different than any other the world has ever seen, and so that the possibility of a V-shaped recovery is much more pronounced than history would indicate.

If you remain among the bullish 47.7%, InvestorPlace Markets Analyst Luke Lango penned an article titled “The Top 15 Stocks to Buy in 2020” that can get you thinking about where to put your money to work.

Saudi Investment Sends Cruise Stocks Rocketing

[Monday, April 6, 4:41 p.m.]
Contributed by Bret Kenwell

Cruise operators have dominated headlines in the last few weeks, but Monday saw truly newsworthy price action in the industry-leading names. Why? Saudi Arabia’s Public Investment Fund, which is a sovereign-wealth fund, reported an 8.2% stake in Carnival (NYSE:CCL).

Shares of CCL stock skyrocketed, closing 20.3% higher on the day. Peer companies Royal Caribbean (NYSE:RCL) and Norwegian Cruise Line (NYSE:NCLH) also shot higher in sympathy. RCL stock ended the day up 21.4% and NCLH stock ended the day up 18.3%.

Are these gains sustainable? It’s too early to tell, but Monday’s move was a nice treat for investors. The market will certainly keep watching cruise operators to see how the novel coronavirus impacts their business moving forward.

The Dow Sees a 1,600 Point Rally on Monday

[Monday, April 6, 4:01 p.m.]
Contributed by Sarah Smith

Wow, is this rally for real? That’s what investors are surely asking themselves on Monday as all major indices closed the day higher by at least 6.5%. Stock futures began the day higher, on reports that deaths in Italy and New York were decelerating. However, President Donald Trump and his advisors are still warning that the coming week will be a tough one. Deaths in the U.S. now top 10,000.

But that bad news isn’t shaking the market today. Even word that the United Kingdom’s Boris Johnson has been moved to intensive care didn’t hurt the indices in the final minutes of trading. The S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite all ended the day deep in the green.

• The S&P 500 closed higher by 6.95%

• The Dow Jones Industrial Average closed higher by 7.59%

• The Nasdaq Composite closed higher by 7.33%

British Prime Minister Boris Johnson Moved to ICU

[Monday, April 6, 3:50 p.m.]
Contributed by Andrew Taylor

Boris Johnson, the Prime Minister of the United Kingdom, was admitted today into intensive care at a London Hospital as a result of complications from the novel coronavirus. Johnson’s illness was first announced last week, and he moved into the hospital over the weekend. The move to the intensive care unit of St Thomas’ Hospital occurred around 7:00 p.m. local time.

Johnson is the first major world leader confirmed to have contracted the virus. He has maintained a very public persona, and the state of his illness will be closely watched by markets worldwide.

ResMed is a Strong, Outperforming Coronavirus Stock

[Monday, April 6, 3:43 p.m.]
Contributed by Sarah Smith

InvestorPlace analyst Louis Navellier named one stock this weekend that is seriously outperforming the broader market. But what’s even more important is that his pick, ResMed (NYSE:RMD), has long-term staying power.

Yes, ResMed makes ventilators and other devices that are key in fighting the novel coronavirus. But Navellier was recommending RMD stock in his Growth Investor in February, before most Americans even knew what the coronavirus was. Why? Well, 42 million Americans are impacted by sleep-disordered breathing. That’s a huge market. And it isn’t disappearing anytime soon.

From Navellier’s most recent update:

“The bottom line: RMD is sure to be more in demand during the coronavirus pandemic, but it also has the staying power to continue climbing over the long term. And those are the only stocks I will ever invest in.”

For more on ResMed, and other major growth opportunities, read his full briefing here.

JPMorgan CEO Says a ‘Bad Recession’ Is Ahead

[Monday, April 6, 2:25 p.m.]
Contributed by Sarah Smith

JPMorgan’s (NYSE:JPM) CEO Jamie Dimon is calling for a bad recession, but he’s confident his bank, and JPM stock, are in a good place.

In his annual letter, which was published today, he wrote that through careful planning, JPMorgan should not need to ease regulations to weather the storm. He even said that GDP could fall as much as 35% — and stay there for the extent of 2020 — before he’d consider slashing the dividend on JPM stock.

In that same letter, here’s what Dimon wrote:

“Entering into a crisis is not the time to figure out what you want to be. You must already be a well-functioning organization prepared to rapidly mobilize your resources, take your losses and survive another day for the good of all your stakeholders.”

With a safe dividend, and a decision to halt the company’s buyback program, investors can find solace in a few things. The current pandemic-driven bear market is not a repeat of the financial crisis. Banks are in a much better position than they were then.

InvestorPlace’s Luke Lango is even calling for investors to buy the big bank stocks. And Lango argues that JPM is the most high-quality name in the big bank space. Faizan Farooque feels similarly, saying that Dimon’s leadership alone is a reason to like JPM stock.

Dimon has worked hard to make JPMorgan a “port in the storm.” Investors should treat discounted prices in JPM stock — and its big bank brethren — as buying opportunities.

What Last Week’s Most Popular Articles and Search Terms Reveal About Our Readers

[Monday, April 6, 1:30 p.m.]
Contributed by Andrew Taylor

It can be insightful to know what fellow investors are reading, especially in unsettled and uncertain times. With that in mind, here’s list of the top five most popular articles read last week on InvestorPlace.com:

30 Stocks on a Deathwatch by Josh Enomoto United Got Its Bailout, So Sell UAL Stock While You Still Can by Todd Shriber 7 U.S. Stocks to Buy on Coronavirus Weakness by Luke Lango 10 Stocks to Buy Whose Companies We Can’t Live Without by Will Ashworth At What Point Is Delta Stock a Screaming Buy? by Bret Kenwell

Not all of the readers on InvestorPlace.com arrive on our site from a Google search.

That said, monitoring organic search queries from Google can provide great insight into what’s top-of-mind for investors. With that in mind, here are the top 10 search queries our articles appeared under last week:

ccl stock amazon stock american airlines stock microsoft stock delta stock spy stock lk stock tsla stock uber stock tsla

This Pandemic Could Change the Gig Economy Forever

[Monday, April 6, 1:04 p.m.]
Contributed by Sarah Smith

Gig economy workers were already at a disadvantage. They missed out on many benefits that workers classified as employees typically received, like health insurance and paid sick leave. The novel coronavirus is only making that disparity worse, and companies like Uber (NYSE:UBER) are perfect examples.

Uber, led by CEO Dara Khosrowshahi, has long been fighting attempts by others to change its business model. California’s legislators targeted its contributions to the gig economy, passing a law that would force it to classify its drivers as employees. But now, in the face of the pandemic, Uber is pushing back.

Today, InvestorPlace’s Dana Blankenhorn took a closer look at Uber’s business model. He writes that while Khosrowshahi is fighting for drivers to receive the funds they need, he doesn’t want Uber to foot the bill. Uber’s business model, Blankenhorn writes, pushes all the costs onto other parties, freeing up Uber’s cash.

While some might see this as clever strategy, Blankenhorn thinks it’s the end of Uber. Or, at least the end of its current business model. Regardless, its ride-hailing business has been hit had. Drivers are dying, and others are desperate, out of work.

From Blankenhorn:

“I don’t think the last era’s business models, meant to insulate companies from corporate responsibility, are going to play in this new era. I wouldn’t touch Uber stock with a barge pole.”

The Coronavirus Has Supercharged the Wealth Gap

[Monday, April 6, 12:28 p.m.]
Contributed by Christopher Skokna

In Saturday’s Smart Money column, InvestorPlace analyst Eric Fry highlighted a coronavirus consequence that not many others are.

Over the past decade, in some ways, the generational inequality we call the “wealth gap” had shown signs of reversing. Thanks to changes in the healthcare system, more Americans are insured. As of late last year, wages were growing faster than at any time in the past two decades. And the economy had been adding jobs for more than 100 consecutive months, putting unemployment at record lows.

Then along came Covid-19. In a month, the coronavirus wiped out all that progress. U.S. GDP could decline by 14% in the second quarter, according to JPMorgan. The number of jobless claims moved from 228,000 three weeks ago to an astounding 6.65 million last week. That number lifts the two-week tally of lost jobs to nearly 10 million — the biggest jobs crash in recorded history.

Eric says he believes that we will beat the coronavirus and the economy will recover, longer term. However, many companies will counteract the risks of the next global pandemic by shifting more of their processes to automation, robots and artificial intelligence, rather than human beings.

And that will cause the wealth gap to keep on getting bigger. For Eric’s full report on this phenomenon — and how to protect yourself — click here.

Expect REITs to Start Slashing Cash Payouts

[Monday, April 6, 11:22 a.m.]
Contributed by Andrew Taylor

Real estate investment trusts, commonly known as REITs, are favored by many investors for their reliable cash dividend payout. It’s the proverbial, “My money makes me money” that so many investors seek.

According the an insightful article in Barron’s yesterday, REIT investors may be in for quite a shock in the coming weeks and month as the companies halt cash payouts in an attempt to shore up their balance sheets. Instead of paying cash dividends, experts expect many REITs instead to pay their dividends with a mixture of cash and stock.

Per that very same Barron’s article:

“I have little doubt that the REITs will begin paying dividends largely in the form of their own stock,” says Robert Willens, a tax and accounting expert who runs an eponymous consultancy. “That happened during the previous financial crisis, and it will almost certainly happen again.”

If you hold REITs in your portfolio, expect a little less cash to come your way in the coming months.

Investors Get Bullish After Unprecedented Fed Bond Buying

[Monday, April 6, 11:12 a.m.]
Contributed by Andrew Taylor

Any prudent portfolio includes exposure to both stocks and bonds, and investors need to pay attention to both categories of their holdings. With that in mind, make sure that you’re aware of some highly unusual activity in the corporate bond markets.

Two weeks ago the Federal Reserve announced an unprecedented plan to buy corporate bonds. That said, the Fed is only buying investment-grade corporate bonds, not higher-yield, lower-quality bonds (the so-called “junk bonds”). Per an informative article from Dion Rabouin at Axios:

“Junk bond companies have largely been locked out of issuing new debt, but firms with investment-grade ratings have flooded the market with a record $220 billion of new issuance in the last two weeks as the firms desperately seek cash.”

The Fed’s efforts to put money into the economy are being felt already in the corporate bond market. Mike Collins, senior portfolio manager at Prudential’s PGIM Fixed Income, told Axios in that same article that “The Fed came in with its massive bazooka, addressed the liquidity concerns and it’s gone from a buyer’s market to seller’s market.”

The Fed’s actions will create winners and losers in the bond market in a way that we’ve never seen before in the United States. Unless you’re super savvy about finding nuggets among high-yield bond offerings, it’s likely safest to just follow the Fed and focus on investment-grade corporate bond offerings.

Former Fed Chair Yellen: Q2 GDP Could Decline 30%

[Monday, April 6, 11:09 a.m.]
Contributed by Andrew Taylor

[Editor’s Note: This Mission Control post has been edited to reflect updated information.]

Former Federal Reserve Chair Janet Yellen, speaking this morning on CNBC’s “Squawk on the Street,” announced that she believes that second-quarter GDP could fall by 30%, and that unemployment is already at 12%-13%. If true, both of those figures are well above many estimates. Per an article published by CNBC, Yellen announced:

“If we had a timely unemployment statistic, the unemployment rate probably would be up to 12% or 13% at this point and moving higher.”

She also said that gross domestic product is down “at least 30% and I’ve seen far higher numbers.” Although these numbers are in different form from the Great Depression, she says they still resemble a depression.

Per the same CNBC article Yellen said:

“This is a huge, unprecedented, devastating hit, and my hope is that we will get back to business as quickly as possible.”

One should note that Yellen is no longer at the Fed, and thus may not have access to specialized information at the Fed’s disposal. On the other hand, Yellen has never been known to speak offhandedly, and it’s safe to assume that she knows her words carry great weight. This is a story to continue watching.

Pandemic Accelerates Telemedicine Adoption

[Monday, April 6, 11:02 a.m.]
Contributed by Luis Hernandez

An article in The New York Times notes that physicians around the world are racing to find innovative new ways to safely and effectively treat patients during the novel coronavirus outbreak. And they are rapidly turning to telemedicine.

“In a matter of days, a revolution in telemedicine has arrived at the doorsteps of primary care doctors in Europe and the United States. The virtual visits, at first a matter of safety, are now a centerpiece of family doctors’ plans to treat the everyday illnesses and undetected problems that they warn could end up costing additional lives if people do not receive prompt care.”

At a time when healthcare systems around the world are stretched thin, and with global health experts searching for solutions to slow the spread of the virus, telemedicine offers tremendous value and massive upside.

The broad market selling is creating buying opportunities in investment trends that won’t slow due to the pandemic. In fact, they could even accelerate due to the changing global landscape. Check out Matt McCall’s take on telemedicine in Saturday’s MoneyWire article.

Credit Suisse Warns Investors Should ‘Bail’ on Zoom Stock

[Monday, April 6, 9:50 a.m.]
Contributed by Sarah Smith

Zoom Video Communications (NASDAQ:ZM) has had quite a run in 2020. Investors were so hot on the name that they were mistakenly buying shares in a different company, Zoom Technologies (OTCMKTS:ZOOM). Then, users of the work-from-home solution started reporting hijackers or “zoombombers” crashing their calls. A slew of privacy concerns brought increased scrutiny to the name.

But zoombombings aside, Credit Suisse analysts say there’s something else not to like about Zoom Video stock. Its valuation. Credit Suisse is downgrading the name to “underperform,” and shares are down 10.5% in early trading. Analysts just simply don’t think shares are worthy of trading at 40 times consensus 2020 revenue.

From Credit Suisse analyst Brad Zelnick (subscription required):

“We have great appreciation for Zoom’s technology, products, and leadership and see the current crisis accelerating the adoption of video communication, but at 40x CY20 consensus revenue, the current share price embeds significantly greater conversion of free users than our upside model scenario.”

Stock Market Opens Higher on Falling Coronavirus Deaths

[Monday, April 6, 9:31 a.m.]
Contributed by Sarah Smith

The sun is shining and the stock market is off to a green start. Good news from New York and Italy — both hit hard by the novel coronavirus — is boosting investors’ confidence. New York reported 594 new deaths on Sunday, down from 630 on Saturday. And Italy also reported the slowest rise of new deaths in two weeks.

Many, like New York Gov. Andrew Cuomo, are warning that it’s too early to tell if this is the new trend. But investors are rallying the market higher anyway. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite are all sharply up.

• The S&P 500 opened higher by 3.98%

• The Dow Jones Industrial Average opened higher by 4.39%

• The Nasdaq Composite opened higher by 4.65%

Tesla Stock Soars on Friday as a Surprise Winner

[Friday, April 3, 4:27 p.m.]
Contributed by Bret Kenwell

After a week that saw the Big 3 automakers — General Motors (NYSE:GM), Ford (NYSE:F) and Fiat Chrysler (NYSE:FCAU) — report dismal sales figures, Tesla (NASDAQ:TSLA) gave investors something to cheer for on Friday.

Despite the impacts of the novel coronavirus, which shuttered factories in Fremont and Shanghai, Tesla beat analysts’ estimates. It reported first-quarter sales of 88,400 vehicles while analysts were looking for 79,900. Plus, Tesla produced 100,000 vehicles in the quarter.

TSLA stock rallied 5.6% Friday on the surprise. CEO Elon Musk certainly knows how to deliver.

Devastating Jobs Report Sends Market Down on Friday

[Friday, April 3, 4:01 p.m.]
Contributed by Sarah Smith

The U.S. Department of Labor’s non-farm payroll report hit the market hard this morning, although periods of trading throughout the day seemed to indicate that investors had shrugged it off. But in the afternoon, the major indices headed back down, ending the day in the red.

Nothing — not even the launch of President Donald Trump’s small business loan program — could turn things around. Losses in the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite leave investors without much to celebrate headed into the weekend.

• The S&P 500 ended the day down 1.52%

• The Dow Jones Industrial Average ended the day down 1.67%

• The Nasdaq Composite ended the day down 1.53%

Tech Stocks Are Dominating During the Pandemic

[Friday, April 3, 3:27 p.m.]
Contributed by Sarah Smith

New reporting from The New York Times today confirmed what many already knew to be true. Major tech companies will emerge relatively unscathed from the pandemic, and they will use the current crisis to gain further market leverage. In an article titled “How Tech’s Lobbyists Are Using the Pandemic to Make Gains,” Dave McCabe sheds light on what Silicon Valley’s stars are doing now.

Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) are using the crisis to lobby California’s attorney general to postpone enforcement of the California Consumer Privacy Act. The law requires companies to share with users what data it collects on them, and there’s no doubt data-gathering tech giants are unhappy with the legislation.

Amazon (NASDAQ:AMZN), under CEO Jeff Bezos, is often criticized for its treatment of rank-and-file employees. Bezos makes headlines every time he supports a charity, as most Americans want to see him donating more. But Amazon has been in Washington, hoping to gain more financial backing for remote working. And Uber (NYSE:UBER) is also seizing an opportunity to challenge California’s Assembly Bill 5, which will require the ride-hailing company to treat its drivers as employees.

Say what you will about the ethics of these situations, but Silicon Valley’s best and brightest will survive the novel coronavirus. Amazon stock is up for the year. Although GOOGL, FB and UBER shares are down in line with the market, investors should see buying opportunities in these names at discounted prices.

Plus, it’s important to remember that technology is greatly shaping the American response to the outbreak. Tech companies are providing critical innovations in telemedicine, drug discovery and work-from-home solutions. These tech companies are the future, and the pandemic isn’t changing that.

Here’s Why Twitter Stock Could Be a Great Buy Today

[Friday, April 3, 2:46 p.m.]
Contributed by Sarah Smith

Enough is enough. That’s what analysts are saying today about Twitter (NYSE:TWTR) stock as it lingers close to 52-week lows. TWTR shares are currently underperforming the S&P 500, down roughly 40% from Feb. 17 highs. It’s clear that Twitter’s 2020 performance is just too ugly.

That’s why Goldman Sachs analyst Heath Terry upgraded shares to a “buy” rating today with a $35 price tag. He was joined in his generosity by CFRA Research analyst John Freeman, who similarly upgraded TWTR stock to a “buy.” However, Freeman actually cut his price target from $38 to $31.

But what is there to like about TWTR stock? Advertising spending is dropping in 2020, which logically should pressure shares further.

Well, Terry thinks Twitter will survive spending cuts, and come out on the other side stronger. In fact, near $22, he thinks TWTR stock offers investors a unique opportunity today.

From Terry, the Goldman Sachs analyst:

“We believe the net impact of advertisers retreating, both as brands weigh the value of spending in a crisis and direct response sees conversions declining, while user growth surges globally as people look to stay informed and connected, has created an attractive entry point.”

Jim Chanos Tells Investors to Beware Popular Virus Stocks

[Friday, April 3, 2:03 p.m.]
Contributed by Sarah Smith

If anything, the novel coronavirus is teaching us that misery loves company. But miserable investors also love rooting for stocks that offer hope. In our new pandemic-driven world, this has largely meant that biotech companies working on coronavirus vaccines are now market-beating equities. You’ve surely heard of Inovio (NASDAQ:INO) and Moderna (NASDAQ:MRNA), right?

But other names are flying high, too. These stocks that are outperforming the market all tie into stay-at-home orders or remote work trends. Many investors are helping Peloton (NASDAQ:PTON), Clorox (NYSE:CLX), Teladoc (NYSE:TDOC) and Zoom Video Communications (NASDAQ:ZM) rally.

Jim Chanos, Kynikos Associates founder, has a different take. He’s telling investors that these “virus stocks” are dangerous, as their long-term prospects are dim. Peloton, for instance, is rising as Americans become desperate for at-home exercise solutions.

While the company’s luxury offerings may be attractive when the world leaves lockdown, many consumers will be returning to gyms.

From Chanos:

“One area I would warn people about for example is the virus stocks. They are doing well right now in this enforced lockdown. A lot of these companies are really not structurally growth stocks that are trading at 30, 40, 50 times earnings because they are going to do well in the first and second quarters of 2020.”

Nervous Companies Pull Back on Ad Spending

[Friday, April 3, 1:30 p.m.]
Contributed by Andrew Taylor

That was fast! Ugh.

According to an article titled “‘A Seismic Shock’: Jittery Companies Pull Back on Ads During Pandemic” in the New York Times today, companies are already pulling back their advertising dollars. Per the article:

“Companies that spent big to get the word out about their products before the pandemic have hit the brakes. Facebook has described its advertising business as ‘weakening.’ Amazon has reduced its Google Shopping ads. Coca-Cola, Kohl’s and Zillow Group have stopped or limited their marketing. Marriott’s advertising, in the words of the company’s chief executive, has ‘gone dark.’”

This isn’t isolated to a few companies trying to conserve cash. One industry group estimates that advertising spend is down between 38% and 51%. Per the New York Times article:

“Overall spending on digital ads for March and April is down 38 percent from what companies had expected to lay out, and ad spending has fallen 41 percent on TV, 45 percent on radio, 43 percent in print publications, and 51 percent on billboards and other outdoor platforms, according to the trade group IAB.”

That’s not to say that investors should flee all ad-supported businesses. In fact, InvestorPlace’s Laura Hoy makes the case that right now is a great time for investors to look at ad-supported companies with strong balance sheets like Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).

Small Business Loan Program Launches on Friday

[Friday, April 3, 1:15 p.m.]
Contributed by Sarah Smith

One highly awaited portion of President Donald Trump’s $2 trillion stimulus package, the Paycheck Protection Program, launched Friday. This roughly $350 billion program will provide loans to qualifying small businesses.

Although small businesses and lenders alike are already expressing their concerns about the program, it is a key means of helping those most impacted by stay-at-home orders and other lockdown protocols.

Companies that qualify are eligible for up 2.5 times their monthly payroll expenses, as many do not have much of a financial cushion.

Early in the morning, Bank of America reported that it had already received 10,000 applications for loans. Treasury Secretary Steven Mnuchin tweeted that new loans already totaled $875 million, mostly coming from “community” banks.

Only the Biggest Names in Energy Are Guaranteed Survival

[Friday, April 3, 12:34 p.m.]
Contributed by Sarah Smith

This week has seen record action in oil prices. First, we saw the end of the first quarter, marking the worst quarterly performance ever for crude oil. Then, President Donald Trump boldly tweeted that Russia and Saudi Arabia would meet soon to negotiate production cuts. Oil prices skyrocketed on Thursday on hopes the price war would end.

As a reminder, the price war is the result of Russia refusing to comply with OPEC’s recommendations. And boy has the Saudi-Russia price war hammered oil and energy names.

For the year so far, energy exchange-traded funds are underperforming the market. The Energy Select Sector SPDR Fund (NYSEARCA:XLE) is down almost 52%. The SPDR S&P Oil & Gas Exploration and Production ETF (NYSEARCA:XOP) is down more than 65%. Those losses are so bad they’re almost impressive.

In the midst of this, Simpler Trading’s Danielle Shay has some insight on what investors should expect. Unfortunately, she says only a handful of the biggest and most well-capitalized energy companies are guaranteed survival. On her short list are Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX).

From Shay’s interview with CNBC:

“The only [names], in this situation, that are going to be able to survive are ones that have enough cash on hand with a low debt-to-equity ratio. These names are really just going to be Chevron, Exxon, and then the big names that are going to have enough money to get through this.”

These 7 Restaurant Stocks Should Rebound Big Time

[Friday, April 3, 11:45 a.m.]
Contributed by Sarah Smith

Restaurants are in particular focus as businesses around the country shut down. Their delivery, drive-thru and carry-out options are providing spots of relief to quarantined Americans looking for a fun treat. But more importantly, the food industry is getting hit hard. Restaurant chains are laying off and furloughing workers en masse. Many independent shops could go under.

But InvestorPlace’s Chris Lau sees some upside for restaurant stocks. He focuses on businesses who have embraced the pivot to online ordering. Then, he looks at their past financial reports to get a sense of their strength going into the pandemic.

Lau identifies seven restaurant stocks investors should be buying on the dip now, acknowledging that Americans can’t give up fast-food orders forever. Here are the names he’s watching now:

• Restaurant Brands International (NYSE:QSR)

• McDonald’s (NYSE:MCD)

• Yum! Brands (NASDAQ:YUM)

• Starbucks (NASDAQ:SBUX)

• Domino’s Pizza (NYSE:DPZ)

• Chipotle (NYSE:CMG)

• Shake Shack (NYSE:SHAK)

Mark Tepper Says Delta and United Are Too Big to Fail

[Friday, April 3, 10:28 a.m.]
Contributed by Sarah Smith

Despite nearly across-the-board carnage in the airline industry, Strategic Wealth Partners CEO Mark Tepper and MKM Partners Chief Market Technician JC O’Hara are picking their favorites in the space. Why? Some airlines are simply too big to fail.

Many investors, and many InvestorPlace contributors, have debated how the federal bailout will impact the space. Which companies will survive? When will consumers return to flying? Will air travel ever return to its peak? If you’re looking for more guidance, you’re in luck.

Tepper is tapping Delta Air Lines (NYSE:DAL) and United Airlines (NASDAQ:UAL) because of their size. However, he does expect both names to keep underperforming, as investors will continue to price in their acceptance of bailout funds.

O’Hara’s airline pick requires a hop — or perhaps a flight — across the globe. He’s looking at Australia’s Qantas Airways (OTCMKTS:QABSY).

Bank of America Warns of Sky-High Unemployment

[Friday, April 3, 10:01 a.m.]
Contributed by Sarah Smith

In a shocking note, Bank of America analysts warn that investors should be prepared for the “deepest recession on record.” Because they have no precedent to compare this pandemic-driven downturn to, the analysts are calling for extreme figures. In fact, they believe the unemployment rate will surpass those from 2007-08 to reach 15.6% soon.

From the Bank of America note:

“The coming recession appears to be deeper and more prolonged than we were led to believe just 14 days ago when we last updated our forecasts, not just in the US but globally as well.”

Stock Market Opens Down on Payroll Report

[Friday, April 3, 9:31 a.m.]
Contributed by Sarah Smith

After a non-farm payroll report that came in worse than economists’ estimates — by a huge margin at that — the stock market opened down on Friday morning. Granted, we’ve seen some nastier mornings this week. But nonetheless, the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite all started the day down in the red.

• The S&P 500 opened lower by 0.55%

• The Dow Jones Industrial Average opened lower by 0.67%

• The Nasdaq Composite opened lower by 0.39%

U.S. Sees First Job Decline Since 2010

[Friday, April 3, 8:59 a.m.
Contributed by Sarah Smith

No one expected Friday morning’s non-farm payroll report to be upbeat. But perhaps no one expected the U.S. Department of Labor to report a drop of 701,000 jobs for March. Economists had predicted a loss of 10,000 jobs and a new unemployment rate of 3.7%. Friday’s numbers bumped the U.S. unemployment rate to 4.4%.

Additionally, this decline marks the first since 2010, as the U.S. recovered from the Great Recession. According to CNBC, Friday’s figure is eerily close to the peak of 2009, when the Labor Department reported a drop of 800,000 jobs in May.

Investors should anticipate the stock market opening down on Friday, and another choppy day of trading ahead.

10 Companies That Could Still Grow Sales in 2020

[Friday, April 3, 8:45 a.m.]
Contributed by Sarah Smith

Yes, FactSet predicts that S&P 500 earnings growth will decline by 5.2% in the first quarter. And that shouldn’t surprise investors, given that restaurants are limited to take-out and delivery and a whole host of non-essential businesses have closed their doors.

Yesterday, we learned that beloved burger chain Shake Shack (NYSE:SHAK) is seeing 50%-90% sales declines across its company-operated outlets.

But Goldman Sachs says that not all companies will be facing declines. In fact, the firm’s analysts have put together a list of 10 companies that should still grow sales in 2020 (subscription required). Here’s who they’re watching:

• Bristol-Myers Squibb (NYSE:BMY)

• Fiserv (NASDAQ:FISV)

• Global Payments (NYSE:GPN)

• Vertex Pharmaceuticals (NASDAQ:VRTX)

• Fidelity National Information Services (NYSE:FIS)

• Advanced Micro Devices (NASDAQ:AMD)

• ServiceNow (NYSE:NOW)

• Netflix (NASDAQ:NFLX)

• Salesforce (NYSE:CRM)

• Amazon (NASDAQ:AMZN)

Dallas Fed Offers New Unemployment Predictions

[Thursday, April 2, 5:05 p.m.]
Contributed by Andrew Taylor

Speaking on CNBC, Dallas Fed President Robert Kaplan said today that he expects the unemployment rate to peak in the “low- to midteens” before it falls to about 8% by the end of the year.

Kaplan doesn’t have a perfect crystal ball, and we should acknowledge that we’re in uncharted territory given the unprecedented unemployment claim figures that came out today. That said, Federal Reserve presidents aren’t known to be undisciplined when speaking publicly, and you can bet that Kaplan has data and models behind his figures that aren’t available to the general public.

It’s an interesting data point as investors peer into the future.

Amazon Moves into the Gaming Arena

[Thursday, April 2, 4:27 p.m.]
Contributed by Bret Kenwell

There’s always a lot to like about market-leading Amazon (NASDAQ:AMZN) stock. It led the disruptive move into e-commerce, which is giving it a vital role in today’s locked-down world. Amazon also has its Amazon Web Services, and cloud services too are becoming increasingly vital. Oh, and don’t forget its TV, movie and music streaming offerings.

It seems like there’s something for everyone to like about this company, especially as the novel coronavirus changes life as we know it.

Now, Amazon is making yet another move. This time, into the world of video games. The New York Times reported today that Amazon was investing “hundreds of millions of dollars” into its first big game, Crucible. Next up on its agenda is a multiplayer game New World. Both are set to launch next month.

With this news in mind, AMZN stock is certainly one to keep watching. Shares ended the day up slightly.

Stocks Close Thursday Higher After Volatile Day

[Thursday, April 2, 4:01 p.m.]
Contributed by Sarah Smith

Stock futures were rallying Thursday morning, and then fell hard. The U.S. Department of Labor’s report on how many Americans filed for unemployment benefits last week had investors a bit wary. But then, things turned around. President Donald Trump signaled an end to the Saudi-Russian oil price war could be near. Oil prices rallied, big time.

The S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite all finished the day in the green.

• The S&P 500 ended the day up 2.27%

• The Dow Jones Industrial Average ended the day up 2.23%

• The Nasdaq Composite ended the day up 1.72%

Why You Should Learn to Appreciate a Good Financial Crisis

[Thursday, April 2, 3:53 p.m.]
Contributed by Andrew Taylor

Fourteen months ago, InvestorPlace CEO Brian Hunt penned a seminal article titled, “Why You Should Learn to Appreciate a Good Financial Crisis.” The subtitle, “A financial crisis also creates great opportunities” describes the theme of the article perfectly.

Brian’s view:

“In fact, how a person views these events is one of the defining differences between the rich and the poor. The poor are bewildered and angered by these events. The rich see them simply as how the world works … and as the creators of huge opportunities.”

Intriguing, right?

This was all written well before anyone ever heard of the novel coronavirus, and with the benefit of distance from our current crisis. Whether you’re feeling bullish or bearish in the current market, Brian’s article is well worth a read. Click here to read his take.

Is This the Buying Opportunity of a Lifetime?

[Thursday, April 2, 3:00 p.m.]
Contributed by Matt McCall

It’s been another crazy week.

But at this point it’s feeling like par for the course.

The coronavirus continues to cause turmoil throughout the global markets.

Millions of people are divided.

For some, the multitrillion-dollar stimulus plan gives hope that stocks will rebound.

Others feel the worst is yet to come.

Here’s what I think.

Honestly, I see several great opportunities out there right now.

You just need to know where to look.

For one overlooked corner of the market, it’s the buying opportunity of a lifetime.

And I just found three stocks that are screaming buys … even in this market climate.

I revealed the name and ticker symbol of one of these stocks for free during my market briefing last night.

It’s a small, innovative company using artificial intelligence to provide predictive analytics in healthcare.

I believe this stock could climb 1,000% or more in the next few years.

You can learn more about these three stocks and more by watching the time-sensitive replay here.

Goldman Predicts S&P 500 Dividends Will Fall 25%

[Thursday, April 2, 2:51 p.m.]
Contributed by Sarah Smith

Goldman Sachs analysts are also weighing in on the dividend debate. As the novel coronavirus spreads, it does seem likely that more and more companies will cut or suspend their dividends. But Goldman still sees hope, although the firm predicts S&P 500 dividend payouts will drop by 25% in 2020.

The silver lining? High-yielding dividend stocks that seem ready to keep on paying out. As CNBC reports (subscription required), here are 10 stocks the firm is watching:

• Omnicom (NYSE:OMC)

• Home Depot (NYSE:HD)

• Wells Fargo (NYSE:WFC)

• Franklin Resources (NYSE:BEN)

• People’s United (NASDAQ:PBCT)

• Bristol-Myers Squibb (NYSE:BMY)

• 3M (NYSE:MMM)

• International Business Machines (NYSE:IBM)

• NetApp (NASDAQ:NTAP)

• Cisco (NASDAQ:CSCO)

Trump’s Tweet Sends Oil Skyrocketing

[Thursday, April 2, 2:34 p.m.]
Contributed by Sarah Smith

The end of March marked the worst quarterly performance for oil prices. But a tweet from President Donald Trump could be turning things around. West Texas Intermediate prices are up 20% so far on Thursday, and Brent crude prices are up 19.6%.

Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & I expect & hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be GREAT for the oil & gas industry!

— Donald J. Trump (@realDonaldTrump) April 2, 2020

Just a day after Whiting Petroleum (NYSE:WLL) filed for Chapter 11 bankruptcy protection, Trump’s tweet is also boosting energy stocks. If Saudi Arabia and Russia really are willing to meet again and agree on production cuts, other American shale producers could be spared Whiting’s fate.

A Second Wave of the Coronavirus Could Hurt Investors

[Thursday, April 2, 2:05 p.m.]
Contributed by Sarah Smith

As if the first wave of the novel coronavirus isn’t bad enough, JPMorgan analysts are now warning investors that a potential second wave could hit worse (subscription required). Mixo Das, a quantitative strategist for Asia equities, says that as bad as the current lockdown situation is, a second wave of the virus would cause even more pain.

Why? Investors aren’t pricing one in. Right now, most are assuming Covid-19 will be a one-time hit. Anything that contradicts that will catch the market off-guard.

Is Luckin Coffee Stock a Buy Now?

[Thursday, April 2, 1:46 p.m.]
Contributed by Sarah Smith

If you’ve been reading the financial news today, you’ve probably noticed that Luckin Coffee (NASDAQ:LK) was caught red-handed. In a U.S. Securities and Exchange Commission filing, the company admitted that its COO, along with other reporting employees, had faked sales to the tune of $310 million. That’s not good.

Investors are punishing the stock, sending it down over 80% in intraday trading to all-time lows. LK stock has long been seen as the perfect Chinese rival to Starbucks (NASDAQ:SBUX). It has offered investors big growth potential, and new stores seem to open every single day. But, Luckin has now lost investors’ trust.

InvestorPlace’s Luke Lango isn’t fretting. In fact, he says that in the long term, LK stock will rebound, because the fake sales don’t detract from its growth story. Now, below $7, he sees a unique opportunity to buy shares.

From Lango:

“Luckin will continue to grow alongside a booming China retail coffee market, and LK stock will bounce back in a big way from today’s all-time lows. So, for contrarian investors with time on their side, the recent plunge in LK stock looks like a long-term opportunity.”

The Coronavirus Could Send Micron Stock Higher

[Thursday, April 2, 11:53 a.m.]
Contributed by Christopher Skokna

In the latest edition of his Smart Money e-letter, InvestorPlace analyst Eric Fry notes that while stock market averages may not have bottomed out yet, many individual stocks have.

“Best of breed” stocks, in particular, tend to bottom out first, Eric writes, and then they move higher while the rest of the market is languishing. Since we rarely get the opportunity to buy best-of-breed stocks on the cheap, he says, we should be looking for the opportunity to do that.

And in that Smart Money, Eric says the semiconductor sector is one that will soon be on the upswing … and that Micron Technology (NASDAQ:MU) is his top “best in breed” chip stock.

In fact, Eric argues, the novel coronavirus could end up boosting the chip sector.

Near term, of course, the coronavirus epidemic is depressing demand for semiconductors, Eric writes. But long term, many companies might attempt to counteract the operational risks of the next global pandemic by shifting more of their processes to machines of some sort, rather than human beings.

And so, the Covid-19 epidemic could end up being a “trigger” for the semiconductor sector’s — and Micron’s — next leg up.

Check out Eric’s full story for the rest of his case.

Red-Hot Zoom Stock Is Crazy Overvalued

[Thursday, April 2, 11:05 a.m.]
Contributed by Sarah Smith

Popular work-from-home stock Zoom Video Communications (NASDAQ:ZM) has been a winner while the novel coronavirus drives most other stocks down. Zoom offers important technology, facilitating easy video conferences for university students and businesses alike.

But what does Wall Street think about the high-flying name? Well, ZM shares currently trade for 42 times projected fiscal 2021 revenue. And they trade for 31 times fiscal 2022 revenue. It’s safe to say that Zoom Video is looking crazy overvalued here.

From D.A. Davidson analyst Rishi Jaluria, who has a “neutral” rating on the stock:

“While we like Zoom’s multiple growth drivers, emerging use cases, impressive financials, and tailwinds from changes being accelerated by Covid-19, we find the current valuation too rich and would wait for a pullback before buying shares.”

Goldman Sachs Is Showing Verizon Stock Some Love

[Thursday, April 2, 10:44 a.m.]
Contributed by Sarah Smith

Verizon (NYSE:VZ) pays a big dividend — currently yielding more than 4.5%. And making that payout even more attractive is the love it’s getting from Goldman Sachs analysts. On Wednesday, analysts added it to the firm’s “Conviction Buy” list, setting a $61 price target.

Goldman is calling Verizon a “stable stock” and telling clients that once the novel coronavirus eases, VZ stock could see double-digit upside.

From Goldman Sachs analyst Brett Feldman (subscription required):

“We see the stock offering investors the most attractive combination of total return and risk owing to its stable wireless business, well-covered dividend and strong balance sheet.”

8 Dividend Aristocrats That Look Safe

[Thursday, April 2, 10:11 a.m.]
Contributed by Sarah Smith

It seems like every day another stalwart American company slashes its dividend. So where should income investors look for stable payouts? According to Barron’s, dividend aristocrats are a good place to start. These eight stocks below meet their criteria and are worth a second look now:

• Abbott Laboratories (NYSE:ABT)

• Chevron (NYSE:CVX)

• Hormel Foods (NYSE:HRL)

• Johnson & Johnson (NYSE:JNJ)

• Kimberly-Clark (NYSE:KMB)

• Medtronic (NYSE:MDT)

• Procter & Gamble (NYSE:PG)

• T. Rowe Price Group (NASDAQ:TROW)

Stock Market Opens Down on Jobless Claims

[Thursday, April 2, 9:31 a.m.]
Contributed by Sarah Smith

Stock market futures were initially well in the green this morning, but the U.S. Department of Labor’s jobless claims report sent things down fast. Now, the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite are all starting trading in the red. Will positive sentiment return to the market today?

• The S&P 500 opened down 0.02%

• The Dow Jones Industrial Average opened down 0.14%

• The Nasdaq Composite opened down 0.29%

Weekly Jobless Claims Top 6 Million

[Thursday, April 2, 9:01 a.m.]
Contributed by Sarah Smith

According to the U.S. Department of Labor, over 6 million Americans filed for unemployment benefits last week. That’s double the previous week’s 3.3 million figure, and setting a dangerous precedent. According to Yahoo Finance reporter Heidi Chung, Americans are losing their jobs at a “historic pace.”

It is also important to note that economists did not predict such a sharp increase in lost jobs. The consensus estimate was for 3.7 million jobless claims. For the week ending March 28, the total came in above 6.6 million claims.

Expect the Unexpected from Earnings Season

[Thursday, April 2, 7:44 a.m.]
Contributed by Luis Hernandez

Earnings season is one of our favorite times at InvestorPlace.

We love numbers. We love analyst estimates. We love creating charts and projecting future earnings.

But this earnings season is going to be far from ordinary.

First, the U.S. Securities and Exchange Commission has already granted extensions to public companies on delivering their earnings reports. That means we are going to have delays, and incomplete data for some time. And already many companies have withdrawn previous guidance for projected earnings for 2020, with no indication about when future guidance could appear.

And when the numbers do come in, they are not going to be pretty. According to FactSet, analysts expect S&P 500 earnings to decline 5.2% in the first quarter.

Investors should expect data to be incomplete and not very positive this quarter, or even next. FactSet also notes analyst projections are for S&P earnings to decline 10% in Q2.

As time goes on, we’ll get a clearer picture, but investors should brace themselves for a lot of unknowns over the next several weeks.

When Will the Pandemic End?

[Wednesday, April 1, 4:35 p.m.]
Contributed by John Kilhefner

The novel coronavirus has had a cascading effect on the world economy, and investors have regrettably aimed to time the market bottom to disastrous effect.

However, InvestorPlace Markets Analyst Luke Lango created a data-driven model to help other investors better understand when the Covid-19 panic will come to an end.

In his article titled “Tracking Covid-19: When Will the Coronavirus Pandemic Peak?”, Lango writes the following:

“Unfortunately, pandemics are inherently tough to predict. No one knows with great certainty how the Covid-19 pandemic will end. Fortunately, though, there is a lot of data out there with respect to the coronavirus pandemic. We can use all that data to make educated predictions about the lifespan and magnitude of Covid-19.”

It’s been nearly a month since the U.S. tallied its first 1,000 cases, and Lango can see an end in sight:

“The hope is that these growth curves — the 5-day moving averages — follow the same ‘bell’ trajectory as they did in South Korea and China. Rise fast for a few weeks, flatten out for a few days, and then gradually fall towards near-zero.”

Big 3 Automakers All Face Steep Sales Declines

[Wednesday, April 1, 4:26 p.m.]
Contributed by Bret Kenwell

Are the “Big 3” automakers becoming the “Little 3” in the business? As General Motors (NYSE:GM), Fiat Chrysler (NYSE:FCAU) and Ford (NYSE:F) all are facing steep sales declines, that may be the case.

GM reported that its U.S. sales are down 7% in the first quarter, and its inventory is down 18% year-over-year. Fiat Chrysler had a strong January and February, but it still is seeing a 10% drop in vehicles after factoring in March. And although Ford has yet to report its sales figures, it’s probably safe to assume the numbers won’t be pretty.

Dow Drops Almost 1,000 Points on Wednesday

[Wednesday, April 1, 4:01 p.m.]
Contributed by Sarah Smith

Wow, investors are surely disappointed in Wednesday’s performance. After last week’s impressive rally, President Donald Trump’s warnings about the novel coronavirus are sending the major indices back down. And they’re moving hard and fast. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite all ended the day deeply in the red.

• The S&P 500 ended the day down 4.41%

• The Dow Jones Industrial Average ended the day down 4.44%

• The Nasdaq Composite ended the day down 4.41%

Companies Save Cash by Cutting 401k Contributions

[Wednesday, April 1, 3:52 p.m.]
Contributed by Andrew Taylor

The 401k — that bastion of American retirement investing — is under fire.

According to an article today in the Wall Street Journal, companies throughout the country are withholding and altering 401k contributions in an attempt to conserve cash.

According to the article, during the 2008 financial crisis, almost 20% of American companies conserved cash by suspending or reducing 401k matching contributions in the months and years that followed the crisis.

This time around, these cuts have come much earlier in the economic cycle. Less than a month ago, virtually no companies were discussing the notion of cutting 401k contributions. Now stalwart American employers like Amtrak, Marriott (NASDAQ:MAR) and Macy’s (NYSE:M) all have announced cuts.

If you’re among the unlucky employees who have seen a cut in your 401k, don’t despair, and don’t stop contributing to your own account — even if your company no longer matches.

Participating in that tax-advantaged program is an important part of your financial plan, even if your company no longer matches contributions.

Beware the United States Oil Fund (USO) ETF

[Wednesday, April 1, 3:25 p.m.]
Contributed by Andrew Taylor

Caveat emptor. “Let the Buyer Beware.”

There’s a major flood of money rushing toward a specific oil ETF, where the buyers had better beware. Many investors are haphazardly snatching up shares of United States Oil Fund (NYSEARCA:USO), which makes sense instinctually …

After all, the price of a barrel of West Texas Intermediate crude dipped below $20 for the first time since 2002. Reportedly, Saudi Arabia is increasing production with the intent of flooding the market to drive an output reduction by other major producers.

This won’t last forever.

The mechanics of that global spat are complex, but many investors are viewing this as a wonderful opportunity to invest in oil on the cheap. An estimated $1.8 billion has flowed into USO in the last three weeks.

It feels inevitable that the price of oil will rise, which will make many investors a ton of cash.

But buyer beware …

Because of the way the USO fund is set up, investors who use that particular fund as a long-term bet on oil prices rising could be caught out in the cold. While it is an excellent fund for short-term plays, experts say that USO is simply not a good way to play the long-term trend in oil prices.

In an Investopedia article titled “Is USO A Good Way to Invest in Oil?”, Steven Nickolas argues that because of esoteric notions known as “contango” and “negative price yield,” investors will be burned in the long term, even if prices rise. In fact, he argues, “… investors planning to gain exposure to the oil market over the long term should avoid investments in the United States Oil Fund.”

Whether investors understand the mechanics of contango and negative price yield isn’t particularly important. What’s important is that investors understand that the USO has material shortcomings as a long-term play on rising oil prices.

Eric Balchunas, an ETF analyst for Bloomberg Intelligence, is more stark about the USO: “What you have to worry about is when oil gets too low or too high, it attracts the tourist types. This is a tourist trap.”

Don’t be a tourist. Caveat emptor indeed.

Don’t Forget to Increase Your ‘Financial IQ’

[Wednesday, April 1, 3:09 p.m.]
Contributed by Sarah Smith

These days, it’s more important than ever to know the “foundational” financial concepts the world’s best investors and business people use to grow wealth.

It’s more important than ever to have a high “Financial IQ.”

To that end, we urge you to read our timeless educational essay titled There’s Always Two Sides to a Price.

The essay details an “enlightened” way to view market panics and crashes … and it could help you make A LOT of money over the next 24 months.

Read this essay by InvestorPlace CEO Brian Hunt right here.

Whiting Petroleum Falls Victim to the Oil Price War

[Wednesday, April 1, 2:53 p.m.]
Contributed by Sarah Smith

Oil prices have been in free fall since the beginning of March, and energy stocks have been seriously hurting. On Wednesday, Whiting Petroleum (NYSE:WLL) became the first major victim of the so-called price war. How many other companies will fall before demand — and prices — rebound?

The Wall Street Journal reported that on Wednesday, Whiting became the first big American shale producer to file for Chapter 11 bankruptcy protections. WLL stock now trades for less than 40 cents, and shares are down over 44% in intraday trading.

Unfortunately, this bankruptcy doesn’t come as a surprise to many investors. InvestorPlace Digest editor Jeff Remsburg predicted that an “atomic bomb” was coming for the oil market. But in particular, it looks like American shale producers will bear the brunt of the war.

Some, like InvestorPlace’s Nicolas Chahine see Saudi Arabia and Russia hitting the negotiating table again soon. If not, investors will have to wait and see which companies fall victim to bankruptcy next.

Focus on Individual Stocks, Not the Broader Market

[Wednesday, April 1, 2:20 p.m.]
Contributed by Brian Hunt

Around the InvestorPlace offices, we often say, “It’s not so much a stock market as it is a market of stocks.”

We say this because the stock market is made up of many different industries and many different companies. Various economic climates affect industries differently. Something good for one industry isn’t necessarily good for another industry.

For example, the early stage of the novel coronavirus crisis was great for grocery stores because people rushed to stock up on food … but it was terrible for cruise line operators and airlines.

It’s also worth noting that something that is good for one company in an industry isn’t necessarily good for another company in the same industry. The iPhone was great for Apple (NASDAQ:AAPL), but terrible for Apple’s competitor Nokia (NYSE:NOK).

Instead of thinking of “the market” as a monolithic entity into which you put money, we prefer to focus our attention on individual industries and companies. There’s quite a lot happening behind the curtain we call the Dow Jones Industrial Average.

During the March corona panic, we got a heck of a demonstration of how “it’s not so much a stock market as it is a market of stocks.”

For example, during the period of Feb. 19 to March 19 — a period that saw the worst of the selling — retailer Walmart (NYSE:WMT) advanced in price. So did grocery giants Sprouts Farmers Market (NASDAQ:SFM) and Kroger (NYSE:KR). Shares of packaged food makers B&G Foods (NYSE:BGS) and Flowers Foods (NYSE:FLO) gained in value.

Meanwhile, businesses in the travel and entertainment industry were crushed. Cruise ship operators Royal Caribbean (NYSE:RCL) and Carnival (NYSE:CCL) lost more than 75% of their value. Amusement center Dave & Buster’s (NASDAQ:PLAY) lost more than 85% of its value.

Some companies climbing in value and some plummeting 80%?

Yes.

It’s not so much a stock market as it is a market of stocks.

The Market Selloff Is Leading Investors to ETFs

[Wednesday, April 1, 1:27 p.m.]
Contributed by Sarah Smith

It’s no secret that money was leaving stocks during 2020’s first quarter. The panic-driven selling thrust equities into a bear market at record speed, and very few names went against that trend.

But elsewhere in the investing world, exchange-traded funds attracted $66.3 billion during the first quarter. As Bloomberg reports, that’s up $8 billion year-over-year. What does this mean for investors? Well, one takeaway is that many are looking for safe-haven investments. ETFs traditionally offer protection via their diverse holdings, and buying on the dip could be a good way to benefit from rallies across several names.

However, Bloomberg’s Claire Ballentine warns that for many bulls, this is a bad sign that could mean the bottom is still far away.

The Retail Stock Apocalypse Just Hit Horrid New Lows

[Wednesday, April 1, 1:08 p.m.]
Contributed by Brian Hunt

Think the market put in a bottom last month?

Don’t tell retail stocks.

The retail apocalypse hit horrid new lows today. Retail stocks hitting new 52-week lows today include Bed Bath & Beyond (NASDAQ:BBBY), Gap (NYSE:GPS), American Eagle (NYSE:AEO), Nordstrom (NYSE:JWN), Macy’s (NYSE:M) and Buckle (NYSE:BKE).

The disastrous 1-year chart of Nordstrom below shows that the retail sector is still a “falling knife” that should be avoided.

Source: Chart courtesy of StockCharts.com

Bank of America Says ‘Buy Apple’

[Wednesday, April 1, 1:00 p.m.]
Contributed by Brian Hunt

Bank of America analysts recently released a list of top U.S. stocks to buy now (subscription required).

On the list, you’ll find Apple (NASDAQ:AAPL) … which at times has declined more than 20% from its 2020 high.

If you think the global economy will be “less bad” 12 months from now and smartphone sales will pick back up, depressed Apple shares are a good way to trade that outlook.

Factories Around the World Face Massive Production Cuts

[Wednesday, April 1, 12:51 p.m.]
Contributed by Sarah Smith

The Wall Street Journal reported Wednesday afternoon that a new series of business surveys all show the same thing: Production is down.

Why? Demand is falling, and safety protocols are limiting factory work.

Within the United States, the Institute for Supply Management said its manufacturing index fell in March. The new figure is 49.1, down from 50.1. Any number below 50 represents contractionary business activity. Many investors saw this coming, but now are worried about how low April’s numbers will go.

From WSJ reporters Paul Hannon and Harriet Tory:

“Factory output and employment is likely to fall further before it starts to rebound, although that recovery may be limited by job cuts and shutdowns that can take time to reverse. If they don’t receive help from governments and forbearance from banks, some manufacturing companies may close for good.”

New Figures Show 27,000 Job Cuts in Early March

[Wednesday, April 1, 11:20 a.m.]
Contributed by Sarah Smith

For the period between March 1 and March 12, human resource management provider ADP reports that private companies cut 27,000 jobs. This number is important for two reasons. One, it is the first time private companies have seen such a contraction in 10 years. For February 2020, ADP reported that private companies added almost 180,000 jobs. In context, this makes early March’s loss even more staggering.

And two, these numbers only go through March 12, well before the novel coronavirus picked up steam in the United States. While estimates vary widely — some economists are calling for 47 million layoffs in the U.S. — the ADP numbers show what could be ahead.

From Mark Zandi, Moody’s chief economist:

“It’s been 10 straight years of consistent, solid job growth, and the virus has put an end to that.”

Consumer Spending Indicates Trouble Is Ahead

[Wednesday, April 1, 11:12 a.m.]
Contributed by Sarah Smith

American investors are obviously worried about the impact the novel coronavirus will have on consumer spending. And economists are already sounding the alarm, pointing to lower consumer confidence values and decreased spending. The one potential positive is online shopping. Will consumers turn to e-commerce while they are stuck at home?

Unfortunately, new figures from Visa (NYSE:V) indicate that even online shopping is down. In a regulatory filing, the company reported that cardholder spending dropped 4% for March.

Others are hopeful that American consumers will return to their normal routines once the virus tapers off. But in China, where life is gradually returning to normal, new figures suggest the pain will last beyond the infection. The data shows that while people are shopping again, they are not using their money at brick-and-mortar retailers or restaurants.

Instead, Chinese consumers are searching the web for lunchboxes to prepare lunches for work at home, new kitchen supplies and home exercise equipment. What will a long-lasting fear of the virus mean for businesses around the world? And what will the eventual recovery look like?

From Bloomberg’s Daniela Wei:

“The data undermines predictions of a V-shaped recovery in the world’s biggest consumer market that has seen more than 80,000 infections and 3,000 deaths from Covid-19. While big operators like Starbucks Corp. and Yum China Holding Inc. have been reopening outlets, they face a public that’s preferring to stay home after work and continue to social distance, even though official data indicates China’s number of new infections fallen to zero.”

Cryptocurrencies Are Holding Up Better than the Market

[Wednesday, April 1, 10:33 a.m.]
Contributed by Matt McCall

During times of extreme fear and volatility in stocks, alternative asset classes typically tend to do well. Think gold and silver, for instance, or farmland.

Today, we have another alternative asset class that provides great diversification to any portfolio. I’m talking about cryptocurrencies.

The folks at CoinDesk just pointed out how well bitcoin, the largest cryptocurrency with a market capitalization of $116 billion, held up during the first quarter compared to some of the world’s major stock indices.

The Dow Jones Industrial Average dropped over 26%, year-to-date, the worst first quarter ever and the biggest quarterly fall since 1987. Japan’s Nikkei 225 was down about the same, while the FTSE fell 14% over the period, its second-worst quarterly showing ever.

Meanwhile, bitcoin outperformed all three indexes, falling about 10%.

Source: Chart courtesy of TradingView

Some smaller cryptocurrencies have done even better.

A new catalyst that could send bitcoin much higher this year is just weeks away. And it could send the smaller cryptos known as altcoins much higher still.

For more of my research on the catalyst and how you can take advantage of it, look here. I’ve built a system to help identify the best positioned altcoins on the market. You can check that out here.

The Stock Market Opens Lower on Trump’s Warnings

[Wednesday, April 1, 9:31 a.m.]
Contributed by Sarah Smith

President Donald Trump delivered a sobering message during his briefing Tuesday evening on the novel coronavirus. He warned that the death toll in the U.S. likely could reach 240,000. He also warned Americans to prepare for two more “painful” weeks. But the month of March has already brought pain to many around the world.

This message of fear certainly has investors worried, and the major indices all opened down Wednesday morning. At market open the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite were all deeply in the red.

• The S&P 500 opened down 3.7%

• The Dow Jones Industrial Average opened down 3.9%

• The Nasdaq Composite opened down 3.1%

How to Find Stocks in a Bear Market

[Wednesday, April 1, 8:33 a.m.]
Contributed by Louis Navellier

InvestorPlace analyst Louis Navellier has a simple saying to help investors find good stocks in a bear market. Good stocks bounce like tennis balls, and bad stocks fall like rocks. If that’s not clear enough, his weekly reviews of over 5,000 stocks should give you a sense of where equities are headed.

What stocks were making moves this weekend? According to his Portfolio Grader ratings, Lowe’s (NYSE:LOW) was upgraded to a B-rated “buy,” while Bank of America (NYSE:BAC) was downgraded to a C-rated “hold.”

Check out the rest of his list here to see if your stocks are on the move.

Matt McCall Champions Proposed Infrastructure Plan

[Tuesday, March 31, 5:08 p.m.]
Contributed by Luis Hernandez

InvestorPlace analyst Matt McCall must have predicted the future. Since March 17 he has been calling for President Donald Trump to back an infrastructure plan, something that could help rally the economy. McCall’s suggestion hearkens back to the Great Depression, when The New Deal saw a sweeping series of public works programs. And Trump must have been listening.

The President must have watched my Crisis&Opportunity Investment Summit. I pleaded for an infrastructure bill. This is something both sides must agree on. I even said it needs to be $2-$4 Trillion.

The President must have watched my Crisis&Opportunity Investment Summit. I pleaded for an infrastructure bill. This is something both sides must agree on. I even said it needs to be $2-$4 Trillion. https://t.co/Nik2D0xwoV

— Matt McCall (@MatthewMcCall) March 31, 2020

For more, follow Matt McCall, editor of Investment Opportunities, Early Stage Investor, and Ultimate Crypto on twitter at (@MatthewMcCall)

And don’t forget to join him for Part 2 of his Crisis and Opportunity Summit tomorrow at 7 p.m. ET. Click here for more info.

Trump’s Infrastructure Plan Sends Some Stocks Higher

[Tuesday, March 31, 4:30 p.m.]
Contributed by Bret Kenwell

Although the overall markets ended the day down, President Donald Trump’s call for a $2 trillion infrastructure plan is sending some stocks higher. U.S. Steel (NYSE:X), Alcoa (NYSE:AA), Cleveland-Cliffs (NYSE:CLF) and Freeport-McMoRan (NYSE:FCX) were some of the names seeing big gains.

But Senate Majority Leader Mitch McConnell isn’t ready to let Trump’s “VERY BIG & BOLD” plan roll. He’s asking that Trump wait and see how Friday’s stimulus package helps the economy first.

Stock Market Closes Down After Choppy Trading

[Tuesday, March 31, 4:00 p.m.]
Contributed by Sarah Smith

Monday brought a 3%-plus rally to the stock market, but Tuesday got a weak start. The major indices were down around 0.5% at market open. Despite some short bursts higher in intraday trading, the S&P 500, Dow Jones Industrial Average and Nasdaq Composite all ended the day in the red. 

• The S&P 500 ended the day down 1.6%

• The Dow Jones Industrial Average ended the day down 1.8%

• The Nasdaq Composite ended the day down 1%

30 Stocks to Throw Out of Your Portfolios Now

[Tuesday, March 31, 3:00 p.m.]
Contributed by Andrew Taylor

If you hold individual stocks, you can’t count on someone else to keep an eye on your wealth. Now is the most important time ever — at least, in the last decade — for you to pay attention to the holdings in your portfolio.

With the massive shift in cash flow and consumer demand that’s occurred in the last month, a flood of bankruptcies are coming. Well-known companies will start declaring bankruptcy, and we’ll all be surprised by some of the names we see.

With that in mind, it’s imperative to keep an eye on your holdings. InvestorPlace’s Josh Enomoto has a list of 30 popular stocks that he places on a deathwatch. It’s worth a look to see if any on his list are in your portfolio.

Gas Prices Drop Below $2

[Tuesday, March 31, 2:24 p.m.]
Contributed by Luis Hernandez

AAA reported today that the national pump price for regular gasoline dropped below $2 for the first time in four years.

The decline in the global economy due to the novel coronavirus, combined with the Russia-Saudi price war, is driving gasoline prices lower. AAA projects gas prices to keep dropping, and expects the price to hit $1.75 or less by April.

This is great news for consumers and businesses alike. Low interest rates, the $2 trillion stimulus package and very low gasoline prices could be major drivers of the recovery from the panicked selling hitting the financial markets.

Don’t Trust These 7 Small-Cap Stocks Now

[Tuesday, March 31, 1:26 p.m.]
Contributed by Louis Navellier

Right now is not the time for investors to be taking on any more risk. And although small-capitalization stocks have the potential to double, triple or quadruple, the seven stocks below are much more likely to disappear forever.

Investors should make sure to avoid (or sell) these struggling small-cap stocks now:

Trump Proposes $2 Trillion Infrastructure Bill

[Tuesday, March 31, 1:04 p.m.]
Contributed by Andrew Taylor

President Donald Trump just tweeted about an infrastructure bill. Such a bill will be an easy thing to push through Congress with bipartisan support.

With interest rates for the United States being at ZERO, this is the time to do our decades long awaited Infrastructure Bill. It should be VERY BIG & BOLD, Two Trillion Dollars, and be focused solely on jobs and rebuilding the once great infrastructure of our Country! Phase 4

— Donald J. Trump (@realDonaldTrump) March 31, 2020

But why does this matter? Investors should expect today’s tweet to define much of the conversation coming out of Capitol Hill in the coming week.

5 Companies Shining on Wall Street Right Now

[Tuesday, March 31, 12:57 p.m.]
Contributed by Jessica Loder

With businesses shut down and consumers shut away in their homes, it can feel like everything is falling apart. But while some companies are furloughing workers and withholding guidance, it’s not all doom and gloom. Other companies are showing strength in these trying times, and Luke Lango outlines five of the stars of Wall Street right now.

The names probably won’t surprise you, but Lango suggests taking a closer look at these stocks:

• Citrix Systems (NASDAQ:CTXS)

• Regeneron Pharmaceuticals (NASDAQ:REGN)

• Gilead (NASDAQ:GILD)

• Netflix (NASDAQ:NFLX)

• Clorox (NYSE:CLX)

Harsh Restrictions Are Helping the U.S. Defeat Covid-19

[Tuesday, March 31, 12:50 p.m.]
Contributed by Andrew Taylor

President Donald Trump is so convinced that social distancing — along with a slew of stay-at-home and shelter-in-place orders — is working that he extended restrictions through April 30. But does any data support his confidence?

The New York Times reported today that Kinsa Health, a maker of internet-connected thermometers, has found that these restrictions are working. Fevers are largely considered a key symptom in diagnosing the novel coronavirus. And as users of Kinsa Health’s thermometers continue to upload their fevers in real time, the data shows that the number of fevers is holding steady, and in fact, may be dropping.

This is good news for Americans who have been questioning the restrictions associated with social distancing, especially the impacts these restrictions will have on the economy. Health officials from New York and Washington have also confirmed Kinsa’s findings.

From New York Gov. Andrew Cuomo:

“People say these requirements — no restaurants, no nonessential workers — are burdensome. And they are burdensome. But they are effective, and they are necessary. The evidence suggests that they have slowed our hospitalizations, and that is everything.”

Landlords and Retailers Join in on Massive Furloughs

[Tuesday, March 31, 11:48 a.m.]
Contributed by Sarah Smith

Last week it seemed like reports of service workers facing unemployment dominated the headlines. But this week, landlords and retailers are facing massive furloughs of their own.

Retailers are struggling to make ends meet, as consumers stay at home and limit spending. Plus, several states have forced non-essential businesses to close, meaning that many shops have no choice but to shutter up. Major retailers like Macy’s (NYSE:M), Kohl’s (NYSE:KSS) and Neiman Marcus have furloughed the majority of their employees. Without any business, these companies have little money to keep sending paychecks.

And in turn, these retail furloughs are creating action on the landlord side. More and more businesses, like The Cheesecake Factory (NASDAQ:CAKE), Mattress Firm and Subway, are bracing for national rent strikes. Without their monthly rent payments, real estate investment trusts are now facing similar furloughs.

Today, CNBC reported that Simon Property Group (NYSE:SPG), the largest mall operator, would furlough 30% of its workforce. And InvestorPlace’s Ian Bezek also wrote that these mall REITs look particularly vulnerable to other headaches like dividend cuts in the coming weeks.

The Coronavirus Hits Consumer Confidence Hard

[Tuesday, March 31, 11:21 a.m.]
Contributed by Sarah Smith

Reports from The Conference Board, a non-profit business and research organization, indicate a drop in consumer confidence levels for March. To be fair, although March’s reading of 120 is down from 132.6 in February, it beat estimates for 110. A higher reading reflects a higher level of confidence.

This consumer confidence index readings are based on The Conference Board’s monthly survey. The survey asks consumers questions about their attitudes and buying intentions, and the results reflect current business conditions.

From Lynn Franco, Senior Director of Economic Indicators at The Conference Board:

“Consumer confidence declined sharply in March due to a deterioration in the short-term outlook. The Present Situation Index remained relatively strong, reflective of an economy that was on solid footing, and prior to the recent surge in unemployment claims. However, the intensification of COVID-19 and extreme volatility in the financial markets have increased uncertainty about the outlook for the economy and jobs. March’s decline in confidence is more in line with a severe contraction — rather than a temporary shock — and further declines are sure to follow.”

S&P 500 Opens Down Slightly on Tuesday Morning

[Tuesday, March 31, 9:31 a.m.]
Contributed by Sarah Smith

After a 3%-plus rally in the stock market yesterday, the S&P 500 and the Dow Jones Industrial Average opened slightly down this morning. As of market open the S&P 500 was down 0.5% and the Dow Jones was down 0.4%.

New Travel Figures Show 90% Drop

[Tuesday, March 31, 8:19 a.m.]
Contributed by Luis Hernandez

American lives continue to change in many ways as the coronavirus pandemic grows, but there might be no better indicator of the disruption than plane travel.

The Transportation Security Administration released recent checkpoint travel numbers — essentially the total number of travelers who pass through an airport checkpoint. The year-over-year numbers show drops of around 90% over the last two days.

Source: Table courtesy of the Transportation Security Administration

For some context, the year-over-year drop was only about 1% at the beginning of March.

16 Ways the Coronavirus Will Change the World

[Monday, March 30, 5:01 p.m.]
Contributed by Andrew Taylor

One thing’s for sure about the coronavirus from China: We’ll all emerge from this situation in a very changed world.

But with change comes investing opportunity. The savviest investors are already thinking ahead to what the world will look like when the coronadust settles so they can know where to put their money to work.

This article from authors Carin Ism and Julien Leyre does a very nice job of highlighting 16 changes we can expect. While I don’t necessarily agree with all 16 of their predictions — many have more leftist intonations than I think accurate — it’s a valuable read to get investors considering what the future will hold.

My favorites:

1. A new appreciation for the benefits of self-sufficiency (think more gardening, 3D printers and the like)

9. Telepresence bonanza

10. Corona-boom babies (yes, they will be called Quaranteens in 2033)

Economic Activity Falls to 2008 Lows

[Monday, March 30, 4:49 p.m.]
Contributed by Luis Hernandez

The New York branch of the Federal Reserve has released a new “Weekly Economic Index” to “measure real economic activity at a weekly frequency.”

The Fed stated that it developed the index because it is interested in tracking real economic activity, not simply financial conditions. In its announcement, the Fed provides details about how it develops the index, including the specific economic data points used. “We transform all series to represent 52-week percentage changes, which also eliminates most seasonality in the data. As the current situation evolves, we may incorporate additional series to refine the index in the coming weeks.”

Below is the first chart produced by the index that shows activity since before the Great Recession.

Source: Chart courtesy of the Federal Reserve Bank of New York

“Developments in the past week saw the index fall to a level unseen since 2008,” said the Fed. The index had been indicating economic growth on either side of 3% since about 2017. In the last two weeks, the index has dropped quickly and now shows a contraction of about 4%.

Healthcare Stocks Lead the Market Higher on Monday

[Monday, March 30, 4:20 p.m.]
Contributed by Bret Kenwell

For the fourth time in five days, the S&P 500 closed in the green. That’s a big relief after some really ugly panic-driven selling. But what big winners can investors thank for Monday’s rally? Healthcare stocks.

Companies like Abbott Labs (NYSE:ABT), Johnson & Johnson (NYSE:JNJ), Regeneron (NASDAQ:REGN), Gilead Sciences (NASDAQ:GILD) and Sanofi (NASDAQ:SNY) climbed higher on Monday thanks to their work against the coronavirus from China. Abbott Labs announced that its new test kit can show a positive result in as little as 5 minutes.

And although its success isn’t related to the coronavirus, Eli Lilly (NYSE:LLY) also helped lead the market higher on Monday. The U.S. Food and Drug Administration approved its Taltz drug for the treatment of pediatric plaque psoriasis.

S&P 500 Ends Monday Higher by 3%

[Monday, March 30, 4:00 p.m.]
Contributed by Sarah Smith 

Investors saw a continuation of last week’s rally in the stock market today. The S&P 500 closed higher by more than 3% while the Dow Jones Industrial Average also closed up by 3.2%. The Nasdaq Composite tacked on gains of 3.6%.

Streaming Stocks Attract Analyst Attention

[Monday, March 30, 3:39 p.m.]
Contributed by Jessica Loder

As more and more people are trapped inside their homes by the spread of Covid-19, streaming stocks are providing an outlet for many. And Netflix (NASDAQ:NFLX), the king of streaming stocks, just got a price target increase from BMO Capital Markets.

“With an extensive content library, well-established infrastructure, and a widely known brand, Netflix is set to benefit from the limited out-of-home entertainment options available to global consumers during the shutdown,” said analyst Daniel Salmon. He reiterated his “buy” rating on the stock, and upped the price target to $450 from $440. With the stock hovering around $370 near the end of the day Monday, he clearly sees plenty of room to the upside.

Workers Protest Coronavirus-Driven Conditions

[Monday, March 30, 3:33 p.m.]
Contributed by Sarah Smith 

Stay-at-home orders around the country, combined with social distancing protocol, have spiked demand for grocery and other delivery services. In response, grocery stores and Amazon (NASDAQ:AMZN) warehouses are hiring thousands of new employees. But some existing workers aren’t too happy with their day-to-day conditions.

Workers from Instacart walked out en masse on Monday to protest. Employees are asking for heightened health protocol, increased risk pay and extra wipes and hand sanitizer.

“Actions speak louder than words,” Instacart worker Sarah Polito told NPR. “You can tell us that we’re these household heroes and that you appreciate us. But you’re not actually, they’re not showing it. They’re not taking these steps to give us the precautions. They’re not giving us hazard pay.”

And workers at an Amazon facility Staten Island, New York are also walking out. Their concerns hinge on alleged confirmed cases of Covid-19 in the warehouse. These employees are asking for increased paid sick time and deeper cleanings of the warehouses.

In the meantime, an Amazon spokesperson told CNN that Amazon is implementing daily temperature screenings to protect the health and safety of its employees.

 As more Americans grapple with stay-at-home orders, it’s unclear how these strikes will play out. Over the last weeks investors have rallied grocery store stocks up in a big way, so keep a watchful eye on any developments from Instacart and Amazon.

Winners and Losers From a Record-Setting Stimulus

[Monday, March 30, 2:37 p.m.]
Contributed by Jessica Loder

With any big government bill like the $2.3 trillion stimulus package, there are winners and losers. Will Ashworth breaks down some of the groups on both sides of this historic chunk of government spending.

On the plus side, individual checks are buying regular folks time. Unemployment is surging, and a bit of extra cash is going to help citizens bridge the gap. And with a combination of grants, loans and loan guarantees, there’s plenty for big businesses to like as well. Airlines are a particular focus.

On the other hand, the $350 billion set aside for small businesses may not nearly be enough, when you consider how many small businesses the U.S. actually has. And New York University economics professor Roman Frydman and former UBS chief economist Lawrence Hatheway say the amount the bill allots for healthcare looks too small as well.

Investors Should Focus on Finding a Coronavirus Cure

[Monday, March 30, 1:49 p.m.]
Contributed by Andrew Taylor

There are currently 16 companies — a mix of biotech startups and legacy drugmakers — working on developing vaccines and other treatments for the coronavirus from China. Investors are busy trying to identify a winner, because whichever company is first to develop an effective treatment will profit handsomely.

Here’s a list of companies that Jaimy Lee, a healthcare reporter for Marketwatch.com, reports are working on a coronavirus treatment or vaccine:

BioNTech (NASDAQ:BNTX) Pfizer (NYSE:PFE) Gilead Sciences (NASDAQ:GILD) GlaxoSmithKline (NYSE:GSK) Heat Biologics (NASDAQ:HTBX) Inovio Pharmaceuticals (NASDAQ:INO) Johnson & Johnson (NYSE:JNJ) Moderna (NASDAQ:MRNA) Novavax (NASDAQ:NVAX) Regeneron Pharmaceuticals (NASDAQ:REGN) Sanofi (NASDAQ:SNY) Roche (OTCMKTS:RHHBY) Takeda Pharmaceutical (NYSE:TAK) Vaxart (NASDAQ:VXRT) Vir Biotechnology (NASDAQ:VIR) Biogen (NASDAQ:BIIB).

Coronavirus Job Losses Could Hit 47 Million

[Monday, March 30, 1:22 p.m.]
Contributed by Sarah Smith 

Economists at the St. Louis, Missouri branch of the Federal Reserve now believe job losses from the coronavirus from China could hit 47 million, greatly surpassing previous estimates. Along with that, the Fed believes at the peak of the pandemic, the unemployment rate could pass 32%. It currently sits just below 4%.

Before the Fed released these “back-of-the-envelope” calculations, St. Louis Fed President James Bullard had called for an unemployment rate of 30%. However, it’s important to note these newest statistics do not account for the effects of the stimulus bill.

From St. Louis Fed economist Miquel Faria-e-Castro:

“These are very large numbers by historical standards, but this is a rather unique shock that is unlike any other experienced by the U.S. economy in the last 100 years.”

S&P 500 Rebound Continues, Oil Hits New Lows

[Monday, March 30, 10:17 a.m.]
Contributed by John Kilhefner

Over the weekend, President Trump announced that federal social distancing measures would be extended through April 30. This prompted crude oil to hit its lowest level in more than 18 years, while the S&P 500 rises 1.5% and the Dow Jones increases 0.92%, as of this writing. From The Wall Street Journal: 

“The end of the first quarter, on Tuesday, will also test many businesses’ ability to pay bills. Traders meanwhile are bracing for fresh constraints on liquidity in some financial markets as investors take stock of portfolios and banks assess their balance sheets at the end of March.”

Trump Signs $2.2 Trillion Stimulus Bill

[Friday, March 27, 4:43 p.m.]
Contributed by Andrew Taylor

The $2 trillion coronavirus relief stimulus bill has now been signed into law, as InvestorPlace writer Bret Kenwell notes in his “Stock Market Today” column:

“The House vote passed, putting it up to President Trump to push it through. With less than an hour to go in the regular trading session, Trump tweeted that he ‘will be signing’ it at 4 p.m. ET in the Oval Office.”

Trump did indeed sign the historic bill, which will put up to $1,200 in the pockets of individuals making less than $99,000 annually.

John Rogers: This Is a Once-in-a-Lifetime Opportunity to Buy Stocks

[Friday, March 27, 4:35 p.m.]
Contributed by Brian Hunt

Over at CNBC, we have John Rogers of Ariel Investments.

John is a bright guy and a talented investor in his own right. According to John, right now is an incredible time to buy stocks:

“I think this is a maybe once in a lifetime opportunity to buy stocks at bargain prices … We’ve been around 37 years at Ariel, and I know I said that ‘once in a lifetime’ chance to buy in ’87 and again in 2008, but I do really think this is an opportunity to take advantage of the volatility, and take advantage of the market.”

Other investors echoed John Rogers sentiments. Pershing Square’s Bill Ackman eked out a tidy $2 billion sum in market hedges after warning the White House to lock down the country …

Mr. President, the moment you send everyone home for Spring Break and close the borders, the infection rate will plummet, the stock market will soar, and the clouds will lift. We need your leadership now!

— Bill Ackman (@BillAckman) March 18, 2020

… Ackman used the $2 billion to beef up his positions in stocks such as Hilton (NYSE:HLT) and Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B).

Matt McCall Prints a Revolution

[Friday, March 27, 4:30 p.m.]
Contributed by Brian Hunt

Meanwhile, in the InvestorPlace stables, legendary “hypergrowth” investor Matt McCall says the coronavirus and subsequent containment efforts will accelerate the adoption of 3D printing. Huge opportunities are ahead, according to Matt, who believes that “making parts for medical equipment needed to combat the coronavirus is just the start. The possibilities in healthcare are limitless.”

Matt’s argument for a 3D-printing resurgence is simple: The U.S.-China trade war prompted companies to look into alternatives for composite materials, and “the coronavirus has only intensified the situation,” making it harder for professionals to find parts. This was just 12 weeks after first reports of the novel coronavirus appeared. Because 3D printing only requires basic materials (the raw materials and the software), it’s once again in demand, this time driven out of both necessity and advanced in technology.

“The bottom line is that 3D printing is on the cusp of major growth that will be driven by necessity, rising demand, and advances in 3D scanning and imaging in the $12 trillion global manufacturing sector,” says Matt.

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