(Bloomberg) — U.S. stocks erased losses and traded little changed after President Donald Trump stopped short of implementing draconian economic restrictions against China even as he blasted the country for its actions on the pandemic and in Hong Kong.The S&P 500 looked to end May on an up note as it caps a second monthly advance. Equities turned higher after Trump announced retaliation against China by withdrawing from the World Health Organization. He said his administration will look into eliminating policies that give Hong Kong preferential treatment. The president did not institute sanctions on Chinese officials as was anticipated.“Nothing on changing trade deal or anything else with teeth. Looking into actions, might do something in the future, but markets won’t worry about that now. He also stuck to script and hit many of the logical things people are upset with China about” said Dennis DeBusschere, a strategist at Evercore ISIStocks have gained more than 4% in May, buoyed by signs the economy is stirring after shutting down in April. But a flurry of negative headlines weighed on sentiment earlier in the day. U.S. consumer spending, which accounts for about two-thirds of the world’s largest economy, plunged a record 13.6% in April after the coronavirus pandemic halted purchases of all but the most essential goods and services.Meanwhile, the president is escalating a confrontation with Twitter Inc. that threatens to damage social-media platform operators. Trump is also weighing in on political unrest in the Midwest, where protests against police violence have turned unruly. Chairman Jerome Powell said the Federal Reserve’s main street lending program will start soon.“I’m very cautious on my medium and even long-term outlook for the markets,” Kate Jaquet, a portfolio manager at Seafarer Capital Partners LLC, said on Bloomberg TV. “I perceive there to be a very large disconnect between stock-market valuations across the globe and underlying company fundamentals.”The Stoxx 600 Index declined for the first time in five days, dragged lower by travel shares and automakers. The euro extended gains after the region’s inflation rate fell to the lowest in four years, adding to reasons for authorities to expand monetary stimulus.Iron ore surged past $100 a ton as supply woes in Brazil coincide with sustained, robust demand in top steel producer China. Crude oil trimmed its biggest monthly advance on record.These are some of the main market moves:For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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In this article you are going to find out whether hedge funds think Southwest Airlines Co. (NYSE:LUV) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]
(Bloomberg) — Occidental Petroleum Corp. cut its quarterly dividend by 91% to the lowest since at least the 1970s amid the pandemic-driven collapse in energy demand that has strained the oil explorer’s ability to shoulder its debt.Occidental shareholders will receive a penny per share on July 15, the Houston-based company said in a statement Friday. The company has been reeling in dividends since March, when it trimmed the payout to 11 cents from 79 cents.The surprise cut came the same day Chief Executive Vicki Hollub and the rest of the board of directors won re-election at Occidental’s annual shareholders’ meeting. The dividend move will save the company about $360 million a year.Hollub has weathered extreme pressure from shareholders ever since outbidding Chevron Corp. to win the purchase of Anadarko Petroleum Corp. last year. The deal saddled Occidental with some $40 billion of debt that was looking hard to pay off even before Covid-19 wiped out global oil demand, sending crude prices to record lows.The company has gone from being a steady, diversified oil producer to a debt-laden, shale-focused driller that now has a market value of just $12.3 billion, less than a third of the price it paid for Anadarko. Its credit rating was downgraded to junk in March. Hollub fended off a shareholder revolt by making peace with the company’s second-largest shareholder, billionaire Carl Icahn, ending a nine-month public battle that included personal barbs against the CEO. However, it came at a cost. Hollub and her fellow directors agreed to cede some control by putting nominees of the activist investor on the board.(Updates with directors’ re-election in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.