Connect with us

CNBC

Why stocks could keep going higher even with massive unrest across America

Avatar

Published

on

The great rotation continues, with some of the most down-trodden names leading the market higher: industrials, airlines, financial institutions, and energy companies.

Powerful monetary and fiscal stimulus programs are keeping stocks aloft, as investors continue to shift funds to parts of the market they believe will be helped by economic reopenings.

So far, the market has not reacted to the violent protests that erupted all across the U.S. after the death of George Floyd in Minneapolis resulted in charges of third-degree murder against a police officer. Across the U.S., there has been looting on city streets and buildings have been destroyed, yet the stock market has ignored it.

“The market is a forward looking mechanism. They see six months from now, nine months from now there will be more semblance of order. The economy will be coming back, and earnings will be coming back. Estimates have stopped going down,” said Steven DeSanctis, Jefferies equity strategist. “You have the full support of the Fed … the flows into credit markets have been incredible. The capital markets are open. IPOs and secondary offerings are getting done.”

Since credit markets seized up in February, the Fed has created program after program to keep the credit markets moving, including more funding in short-term lending markets, Treasury purchases, a commercial paper facility, a municipal bond program, and a plan to buy corporate bonds. The Fed had already cut rates to zero, and has promised to do whatever else is needed, even as it ballooned its balance sheet to $7.1 trillion.

With the Fed in the market, companies have already issued more than $1 trillion in new debt at twice the pace of last year, and at relatively low rates. That has enabled corporate America to restructure existing debt and build cash hoards to weather the downturn. Amazon, for instance, priced $10 billion in new debt Monday, including a 3-year bond with a 0.4% yield.

“All of that outweighs what’s going on,” said Desanctis. “The big thing with social unrest is in two weeks from now, if we get an uptick int the virus and that delays openings, that is something that impacts markets.”

Lori Calvasina, chief U.S. equity strategist at RBC, said the protests could become an issue for stocks if they have a significant impact on consumer or business confidence, as the economy is reopening. The market has also been watching but mostly shaking off the growing tensions between the U.S. and China.

“We have a giant Fed cycle that looks like it’s never going to stop,” said Calvasina. “Is the Fed lift powerful enough to offset negative news? They acted with leadership and acted early and were aggressive. They did everything they could, and it’s helping. It may be just that simple.” The Fed is not alone, and analysts also point to global central banks including the European Central Bank, expected to expand its programs this week.

The unrest, which has resulted in damage in dozens of cities, has led some on Wall Street to draw parallels to 1968, a year of tumult. There were riots and protests in a divided America, and both civil rights leader Martin Luther King and Sen. Robert Kennedy, a presidential candidate, were assassinated.  After a 9% drop for the S&P 500 from January to March, the market rallied 24% and ended  7.6% higher.

But Barry Knapp, managing partner at Ironsides Macroeconomics, said the better comparison could be 1958 or 1980. “In both those occasions, we had a very sharp, short recession. The reason for the recession was government policy in 1980. In that case it was [President Jimmy] Carter putting credit controls on the economy,” said Knapp. “ISM went from over 50 in February to 29 in May and then shot back up to 56 by the time the election came around. You had a sharp sell-off seven days longer than this one and the market just rallied right into the election.”

Both DeSanctis and Knapp said the market could be vulnerable to a shallow pullback, but the expect to continue to see a broadening of the rally and money flowing into the underperforming cyclicals.

The S&P 500 ended Tuesday up 1% at 3,080 and has rallied 40% from the March low. The  XRT SPDR S&P Retail ETF was just barely higher at the close but it had been up 1.8% in early trading, even though retail establishments have been looted and many have protectively closed in protest areas. The iconic Herald Square Macy’s flagship store in New York City was looted Monday. DeSanctis said the sector will have insured losses on some stores.

Airline stocks were up 1.6% amid continued optimism that people will increase travel as the economy opens up more and more. They are up over 13% over the past month but down 52% for the year. Commercial banks were up 2.4%.

“It’s the beginning of a new business cycle. You shouldn’t get all beared up, and you’re not supposed to focus on valuations. This is the early stage of the business cycle,” said Knapp.

Small caps have also surged, along with the cyclicals. “The Russell is up 42% off the lows the cyclicals are up 40%…the big divergence this year was the fact this year was growth and the speculative stuff held up in the downturn,” said DeSanctis. “Usually, those are the stocks that go down in a downturn. … Health care is going to be the fix to the pandemic. These stocks have gotten a lot more interest.”

Source: https://www.cnbc.com/2020/06/02/why-stocks-could-keep-going-higher-even-with-massive-unrest-across-america.html

CNBC

Pinterest is reportedly in talks to acquire VSCO

Avatar

Published

on

So what can Pinterest do to jump higher up the list of social networking sites? According to a report by the New York Times, one possibility is acquiring the owner of VSCO, the app for editing / sharing photos and videos that has brought in-depth tools to mobile users for years. Neither side directly confirmed the negotiations, and there’s no word on a possible price, but maybe combining forces can bring some Instagram-like glow. 

As it is, Pinterest is still mostly known for planning and organizing, and as the NYT article points out, other than some recent acquisitions, VSCO is currently best known for the “VSCO girls” meme.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.engadget.com/vsco-pinterest-014258107.html

Continue Reading

CNBC

A sealed copy of ‘Super Mario Bros.’ just sold for $660,000

Avatar

Published

on

A nearly perfect copy of Super Mario Bros. for the NES has sold for $660,000 at auction. In what turned out to be a 13-bidder contest, $550,000 went to the game’s original owner. The copy was one of the earliest shrink-wrapped versions of the games you could buy in the US (Super Mario Bros. eventually had 11 different box variants, according to WATA Games).

Heritage Auctions, the firm that oversaw the sale, told Ars Technica it dates back to late 1986. It was reportedly bought as a Christmas gift and sat unopened in a desk drawer for the better part of four decades. “I never thought anything about it,” the seller, who asked to remain anonymous, told the auction house.

The $660,000 this copy of Super Mario Bros. sold for is crazy when you consider the Nintendo PlayStation, a one-of-a-kind prototype representing a unique piece of gaming history, sold for $360,000 at auction last year. More recently, someone paid $156,000 to buy a pristine copy of Super Mario Bros. 3. It makes you wonder how much the owner would have walked away with had they simultaneously tried to cash in on the NFT craze somehow.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.engadget.com/super-mario-bros-auction-000001095.html

Continue Reading

CNBC

‘Lost Tapes of the 27 Club’ used Google AI to ‘write’ a new Nirvana song

Avatar

Published

on

Were he still alive today, Nirvana frontman Kurt Cobain would be 52 years old. Every February 20th, on the day of his birthday, fans wonder what songs he would write if he hadn’t died of suicide nearly 30 years ago. While we’ll never know the answer to that question, an AI is attempting to fill the gap.

A mental health organization called Over the Bridge used Google’s Magenta AI and a generic neural network to examine more than two dozen songs by Nirvana to create a ‘new’ track from the band. “Drowned in the Sun” opens with reverb-soaked plucking before turning into an assault of distorted power chords. “I don’t care/I feel as one, drowned in the sun,” Nirvana tribute band frontman Eric Hogan sings in the chorus. In execution, it sounds not all that dissimilar from “You Know You’re Right,” one of the last songs Nirvana recorded before Cobain’s death in 1994.

Other than the voice of Hogan, everything you hear in the song was generated by the two AI programs Over the Bridge used. The organization first fed Magenta songs as MIDI files so that the software could learn the specific notes and harmonies that made the band’s tunes so iconic. Humorously, Cobain’s loose and aggressive guitar playing style gave Magenta some trouble, with the AI mostly outputting a wall of distortion instead of something akin to his signature melodies. “It was a lot of trial and error,” Over the Bridge board member Sean O’Connor told Rolling Stone. Once they had some musical and lyrical samples, the creative team picked the best bits to record. Most of the instrumentation you hear are MIDI tracks with different effects layered on top.

One thing neither AI gave direction on is how exactly Cobain would have sung the song. Outside of cadence and tone, Hogan had to interpret how the grunge star, who famously suffered from crippling stomach pain, would have channeled his anguish into the lyrics.

Over the Bridge isn’t the first group to use AI to emulate a dead artist. But the intent here is different from similar past projects. “Drowned in the Sun” is part of the organization’s Lost Tapes of the 27 Club initiative. They set out to record AI-generated songs by musicians who died at the age of 27 to raise awareness about mental health resources musicians, and people more generally, can turn to when they feel they need help. The Toronto-based non-profit has a Facebook page where it offers support. It also offers online sessions and workshops.

If you’re experiencing thoughts of suicide or self-harm, you can reach the National Suicide Prevention Hotline at 1-800-273-8255 or over an online chat.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.engadget.com/over-the-bridge-lost-tapes-of-the-27-club-223000315.html

Continue Reading

CNBC

Microsoft’s online-only Build conference starts on May 25th

Avatar

Published

on

Spring is fully upon us, which means the calendar is starting to fill up with high-profile tech events. And the latest addition? Microsoft confirmed today that its online-only Build developer conference will run between May 25th and May 27th, though there’s still no word on when registration will open. (If last year is any indication, our money is on “the end of April.”)

“Microsoft Build is where developers, architects, start-ups, and students learn, connect, and code together, sharing knowledge and expanding their skillset, while exploring new ways of innovating for tomorrow,” the company’s events page explains. 

Unfortunately, Microsoft has yet to update its Build-specific webpage with information about this year’s priorities or schedule, but we’re almost certainly looking at another packed event. Last year, Microsoft went on (among other things) about improved collaboration tools for its suite of Office productivity apps, an AI-focused supercomputer running on its Azure cloud platform, and new cloud tools designed specifically for healthcare practitioners. 

Historically, spring and summer are been jam-packed with large, in-person events where app and software developers get their first glimpse at upcoming platform and strategy updates, attend workshops and code reviews, and generally mingle with their colleagues. Starting last year, though, the worldwide coronavirus pandemic has forced companies that stage these events to rapidly rethink their approaches.

Some, like Microsoft and Apple, quickly pivoted to informative online-only affairs that include full days worth of sessions, demos and fireside chats. (For what it’s worth, Apple announced this week that its own Worldwide Developer Conference will also proceed as an online-only event from June 7-11.) Meanwhile, Google has not yet confirmed whether it plans to stage its Google I/O developer conference at all this year — the company cancelled the show entirely in 2020, but said last month that it does plan to host some version of its annual Google Cloud Next event this October. 

Between a surge in COVID-19 vaccine production and news of relaxed restrictions for vaccinated travelers, Build 2021 may well be the last purely virtual developer conference Microsoft will ever need to put on. With any luck, devs will resume their pilgrimages to Seattle next year, and who knows — maybe those tiny emotional support horses from Build 2018 will show up again too.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.engadget.com/microsoft-build-2021-may-25-to-27-developer-conference-official-212230206.html

Continue Reading
Esports3 days ago

chessbae removed as moderator from Chess.com amid drama

Esports2 days ago

DreamHack Online Open Ft. Fortnite April Edition – How To Register, Format, Dates, Prize Pool & More

Esports4 days ago

Dota 2 Dawnbreaker Hero Guide

Esports4 days ago

Why did Twitch ban the word “obese” from its predictions?

Esports5 days ago

Dallas Empire escape with a win against Minnesota at the Stage 2 Major

Esports5 days ago

A detailed look at Dawnbreaker, Dota 2’s first new carry in four years

Esports2 days ago

Hikaru Nakamura drops chessbae, apologizes for YouTube strike

Esports4 days ago

Dota 2: Patch 7.29 Analysis Of Top Changes

Esports4 days ago

Dota 2 patch 7.29: Impact of Outposts, Water Runes and other major general gameplay changes

Esports4 days ago

Dota 2: Team Nigma Completes Dota 2 Roster With iLTW

Fintech3 days ago

Australia’s Peppermint Innovation signs agreement with the Philippine’s leading micro-financial services provider

Esports5 days ago

Mission Control, Tripleclix Team with Hollister for Fortnite Event/Product Launch

Esports5 days ago

Geely Holdings’ LYNK&CO Sponsors LNG Esports’ LPL Team

Esports5 days ago

xQc calls ZULUL supporters racist for wanting Twitch emote back

Esports4 days ago

Hikaru Nakamura accused of striking Eric Hansen’s YouTube channel

Esports4 days ago

Fortnite: Blatant Cheater Finishes Second In A Solo Cash Cup

Esports5 days ago

Patch 7.29 adds Dawnbreaker, removes Necronomicon and brings heroes and map changes

Blockchain4 days ago

Revolut integriert 11 neue Kryptowährungen

Esports4 days ago

LoL: Blaber Named 2021 LCS Spring Split Honda MVP

Esports5 days ago

LA Thieves defeat New York Subliners to continue at Stage 2 Major

Trending