FXStreet reports that David Lebovitz from JP Morgan Asset Management brief that not every earnings recession was accompanied by an economic recession, but every economic recession was accompanied by an earnings recession as it can be been in S&P 500 earnings per share (EPS) numbers.
“The average decline in S&P 500 EPS during economic recession was -17.2%. Our own models currently point to a drawdown in earnings of -15.2%, well below current consensus estimates and generally in line with the historical experience.”
“As the clouds begin to break, the market will start to price in a ‘virus-free’ run-rate for earnings. At that point, equities should resume their upward ascent.”
“We are focused on quality companies in the short/medium term. This leads us to sectors like consumer staples, technology and health care.”
“Because this event is transitory, the prudent investor will view it as a buying opportunity, while understanding that volatility is unlikely to subside anytime soon.”
U.S. stock-index futures rose on Monday, as the announcement of the new stimulus measures by the Fed boosted investor sentiment.
Global Stocks:
| Index/commodity | Last | Today's Change, points | Today's Change, % |
| Nikkei | 16,887.78 | +334.95 | +2.02% |
| Hang Seng | 21,696.13 | -1,108.94 | -4.86% |
| Shanghai | 2,660.17 | -85.45 | -3.11% |
| S&P/ASX | 4,546.00 | -270.60 | -5.62% |
| FTSE | 5,109.88 | -80.90 | -1.56% |
| CAC | 4,021.92 | -26.88 | -0.66% |
| DAX | 8,911.56 | -17.39 | -0.19% |
| Crude oil | $23.41 | | +3.45% |
| Gold | $1,525.00 | | +2.72% |
(company / ticker / price / change ($/%) / volume)
| 3M Co | MMM | 128 | 3.11(2.49%) | 28831 |
| ALCOA INC. | AA | 5.61 | 0.13(2.37%) | 80275 |
| ALTRIA GROUP INC. | MO | 34.25 | -0.03(-0.09%) | 60361 |
| Amazon.com Inc., NASDAQ | AMZN | 1,874.70 | 28.61(1.55%) | 154661 |
| American Express Co | AXP | 75.11 | 0.99(1.34%) | 20785 |
| AMERICAN INTERNATIONAL GROUP | AIG | 19.78 | 0.55(2.86%) | 9892 |
| Apple Inc. | AAPL | 234.5 | 5.26(2.29%) | 1524058 |
| AT&T Inc | T | 27.55 | -0.90(-3.16%) | 880617 |
| Boeing Co | BA | 101.7 | 6.69(7.04%) | 1066097 |
| Caterpillar Inc | CAT | 97 | 1.50(1.57%) | 26740 |
| Chevron Corp | CVX | 60.6 | 1.21(2.04%) | 54370 |
| Cisco Systems Inc | CSCO | 36.68 | 1.08(3.03%) | 152361 |
| Citigroup Inc., NYSE | C | 38.91 | 0.85(2.23%) | 145125 |
| Deere & Company, NYSE | DE | 110 | -1.63(-1.46%) | 1500 |
| E. I. du Pont de Nemours and Co | DD | 31.95 | 0.48(1.53%) | 3397 |
| Exxon Mobil Corp | XOM | 33.25 | 0.51(1.56%) | 286213 |
| Facebook, Inc. | FB | 153.5 | 3.77(2.52%) | 259971 |
| FedEx Corporation, NYSE | FDX | 112 | 0.94(0.85%) | 4332 |
| Freeport-McMoRan Copper & Gold Inc., NYSE | FCX | 5.67 | 0.15(2.72%) | 71848 |
| Ford Motor Co. | F | 4.32 | -0.01(-0.23%) | 361838 |
| General Electric Co | GE | 6.61 | 0.09(1.38%) | 763959 |
| General Motors Company, NYSE | GM | 18.4 | 0.26(1.43%) | 77012 |
| Goldman Sachs | GS | 139.5 | 1.09(0.79%) | 46679 |
| Google Inc. | GOOG | 1,092.00 | 19.68(1.84%) | 33173 |
| Hewlett-Packard Co. | HPQ | 14.11 | 0.16(1.15%) | 8138 |
| Home Depot Inc | HD | 153.9 | 1.75(1.15%) | 37810 |
| HONEYWELL INTERNATIONAL INC. | HON | 115 | 2.50(2.22%) | 5011 |
| Intel Corp | INTC | 46.57 | 0.74(1.61%) | 259767 |
| International Business Machines Co... | IBM | 96.85 | 1.46(1.53%) | 35834 |
| International Paper Company | IP | 30 | 0.49(1.66%) | 5509 |
| Johnson & Johnson | JNJ | 121 | 1.11(0.93%) | 46162 |
| JPMorgan Chase and Co | JPM | 85.5 | 2.00(2.40%) | 323227 |
| McDonald's Corp | MCD | 150.5 | 2.01(1.35%) | 37888 |
| Microsoft Corp | MSFT | 141.5 | 4.15(3.02%) | 811643 |
| Nike | NKE | 68.37 | 0.92(1.36%) | 40589 |
| Pfizer Inc | PFE | 29.15 | 0.14(0.48%) | 92257 |
| Procter & Gamble Co | PG | 103.42 | 0.99(0.97%) | 31597 |
| Starbucks Corporation, NASDAQ | SBUX | 59 | 0.97(1.67%) | 104647 |
| Tesla Motors, Inc., NASDAQ | TSLA | 447.33 | 19.80(4.63%) | 492868 |
| The Coca-Cola Co | KO | 39.35 | 1.05(2.74%) | 138632 |
| Travelers Companies Inc | TRV | 90.47 | 0.96(1.07%) | 8509 |
| Twitter, Inc., NYSE | TWTR | 24.3 | 0.35(1.46%) | 454762 |
| United Technologies Corp | UTX | 83.6 | 1.07(1.30%) | 14327 |
| UnitedHealth Group Inc | UNH | 211.6 | 5.01(2.43%) | 15720 |
| Verizon Communications Inc | VZ | 51.65 | -0.15(-0.29%) | 121050 |
| Visa | V | 147.38 | 0.55(0.37%) | 78642 |
| Wal-Mart Stores Inc | WMT | 114.57 | 0.60(0.53%) | 46085 |
| Walt Disney Co | DIS | 87.64 | 1.66(1.93%) | 249029 |
| Yandex N.V., NASDAQ | YNDX | 30.62 | 0.71(2.37%) | 68304 |
NIKE (NKE) target lowered to $78 from $117 at Pivotal Research Group
AT&T (T) downgraded to Neutral from Outperform at Robert W. Baird; target lowered to $33
Honeywell (HON) downgraded to Equal-Weight from Overweight at Morgan Stanley; target $121
Starbucks (SBUX) downgraded to Neutral from Buy at MKM Partners
Boeing (BA) upgraded to Buy from Neutral at Goldman; target lowered to $173
Coca-Cola (KO) upgraded to Overweight from Neutral at JP Morgan; target $44
Dow (DOW) upgraded to Buy from Hold at Jefferies; target $44
Honeywell (HON) upgraded to Outperform from Neutral at Daiwa Securities; target $129
Netflix (NFLX) upgraded to Outperform from Neutral at Robert W. Baird; target raised to $415
| Index | Change, points | Closed | Change, % |
|---|---|---|---|
| Hang Seng | 1095.94 | 22805.07 | 5.05 |
| KOSPI | 108.51 | 1566.15 | 7.44 |
| ASX 200 | 33.7 | 4816.6 | 0.7 |
| FTSE 100 | 39.17 | 5190.78 | 0.76 |
| DAX | 318.52 | 8928.95 | 3.7 |
| CAC 40 | 193.3 | 4048.8 | 5.01 |
| Dow Jones | -913.21 | 19173.98 | -4.55 |
| S&P 500 | -104.47 | 2304.92 | -4.34 |
| NASDAQ Composite | -271.06 | 6879.52 | -3.79 |
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