Markets Brace For Jobs Report & Tech Continues 5-Day Rally – Daily Financial News Summary For August 6, 2020
Thursday saw a late surge in tech, which we’ll get to in a minute, but first, the Dow Jones rose 0.7%, the Nasdaq climbed 1%, and the S&P 500 was up 0.6%. The Stoxx Europe 600 Index lost 0.7%.
The tech industry continued to charge today with Apple reaching another record high and being up 3.5%, while Facebook rallied 6.5% higher, Netflix and Alphabet both closed 1% higher. Microsoft also saw a 1.6% gain.
Gold climbed above $2,050 an ounce in a fifth straight day of gains and finished the day 1.2% higher to settle at $2,061.90 an ounce. Meanwhile, the West Texas Intermediate crude fell 0.4% to $42.03 a barrel. Copper fell 0.1% to $2.9135 per pound.
The first major professional golf tournament of the year kicked off in San Francisco at TPC Harding Park. It is the PGA Championship and as we publish Thursday evening, Jason Day sits alone atop the leaderboard at -5, while nine players are tied at -4 in second place. A few players were still out on the course.
The big news for Friday is the July U.S. jobs reports which are expected.
Crypto Exchange Tauros.io Partners With Dash To Launch First Visa Crypto Debit Card In México
There is good news for Latin America crypto users following Tauros.io cryptocurrency exchange’s partnership with Dash to launch Visa cryptocurrency debit cards. Initially, the Visa crypto debit cards will be available to Mexican users only.
Latin America has been leading in championing the adoption of cryptocurrency, and it seems the efforts are bearing fruits. Dash and Tauros, which operate in digital asset services, have partnered to facilitate the launch of the first-ever crypto debit card in the region. For Tauro’s customers in Mexico, they can now spend Bitcoin, Dash, or any other cryptocurrency in various stores across the country that accept Visa cards.
ADP Private Payroll Report Disappoints & Disney Climbs – Daily Financial News Summary For August 5, 2020
Wednesday kept things in the green as the Nasdaq advanced 0.4%, the S&P 500 was up 0.6%, and the Dow Jones rose 1.4% and hit a 4-day winning streak. The Stoxx Europe 600 Index gained 0.5%. The yield on 10-year Treasuries added four basis points to 0.54%.
While our after-hours reporting showed Disney remaining flat, today, the shares saw a 8.8% gains.
Another gainer for Wednesday was Novavax, whose shares popped 10.4% after the company reported phase one vaccine trial results that demonstrated a positive immune response among patients.
More good news on the fight against COVID-19 came from Johnson & Johnson when they announced they struck a $1 billion deal with the U.S. government to manufacture 100 million doses of its coronavirus vaccine candidate if it proves successful. As a result, their shares rose 0.8%.
Defiance Nasdaq Junior Biotechnology ETF And ALPS Medical Breakthroughs ETF: ETFs To Watch In Biotech And Healthcare Sectors
Defiance Nasdaq Junior Biotechnology ETF (NASDAQ:IBBJ) is the latest addition as Exchange Traded Funds continue to elicit strong demand, given the strong bullish momentum in the equity market. With investments in the equity market edging high amid growing concerns over an extended stock market, the ETF seeks to provide targeted exposure to the biotech space that has been doing exceedingly well amid the disruptions fuelled by COVID-19 pandemic.
How to Choose A Student Credit Card: https://callputstrike.com/2020/08/04/how-to-choose-a-student-credit-card/
Market Optimism On Second COVID-19 Stimulus Plan – Daily Financial News Summary for August 4, 2020
The winds are howling on Wall Street today as Tropical Storm Isaias made its way up the east coast today. Unrelated, but the markets did blow higher with the Dow Jones up 0.6%, the S&P 500 up 0.36%, while the Nasdaq climbed 0.35% to another record close. Stoxx Europe 600 Index fell 0.1%. The euro rose 0.3% to $1.1801.
Some of the positivity in the markets came from developments in the next stages of COVID-19 stimulus packages. Mitch McConnell is supposedly “prepared to support” a coronavirus relief agreement when one is reached between the White House and the dems. The $600 per week federal unemployment benefits and a moratorium on federally backed housing have both expired, as we reported on yesterday.
Disney announced earnings after the bell Tuesday, and earnings per share outperformed at 8 cents compared to the expected loss of 64 cents, according to Refinitiv. Additionally, they announced that they now have over 100 million paid subscribers on their streaming services, which include Disney+, Hulu, and ESPN+. As many expected, park closures impacted revenues significantly. Shares saw little movement on the results.
What would Tuesday be without tech? Apple climbed 0.6%, but Netflix gained 2.2% and Amazon was up 0.87%. Alphabet fell 0.6% and Facebook slipped 0.85%.
JPMorgan Strategists Warn Of Imminent Stock Market Correction
A stock market correction is imminent.
Those are sentiments shared by strategists at JPMorgan.
According to the strategists, the correction could come calling in the next few weeks as a plethora of weak economic data, continue to raise concerns. Payroll data, employment reports, and retail sales in the coming days are some of the releases that could trigger the correction.
“Some misgivings are justified given a macro backdrop that is becoming muddied, but not muddied enough to justify bearish targets or a defensive investment strategy,” say, strategists, led by John Normand, in a note.
https://callputstrike.com/2020/08/04/jpmorgan-strategists-warn-of-imminent-stock-market-correction/
Twitter's $250 Million FTC Complaint | Apple & Nasdaq 100 hit record highs – Daily Financial News Summary For August 3, 2020
Monday kicked off the week on a high note. The Dow Jones was up 0.89%, the Nasdaq grew 1.47%, and the S&P 500 climbed 0.72%. Meanwhile Gold hit the $1,986.30 per ounce mark. The Stoxx Europe 600 Index gained 2.1%. The Nasdaq 100 reached its record high.
Looking back at July’s market performance, the major averages completed their fourth consecutive monthly gain in July, with the S&P 500 growing 5.5% and the Nasdaq gaining over 6%. The Dow gained 2.4% last month.
U.S Households Staring At Harsh Times As $600 Unemployment Benefit Expires
The effects of a Republican-Democrat stalemate on Capitol Hill will be felt far and wide following the expiry of the $600 unemployment benefits program. The two sides failed to reach an agreement that would have seen the program extended and to continue supporting people hard hit by the COVID-19 pandemic.
Unemployment benefits have since fallen by as much as 65% following the $600 a week boosts expiring last week. With the loss of benefits, more than 30 million Americans that have become jobless from the pandemic are expected to see a severe drop in weekly aid, with some experiencing a 90% drop.
Microsoft Tik Tok Acquisition Could Strain Facebook Relationship
A confirmation that Microsoft intends to buy the Chinese app comes just days after President Donald Trump confirmed plans to ban the app over national security concerns. In recent weeks, there have been concerns that Chinese authorities are using the app to gain access to U.S user’s information, something that the U.S considers a matter of national security.
Conspiracy theories about the facemask’s role in combating the spread of the deadly coronavirus refuse to fizzle away. People are increasingly questioning their need even as the U.S continues to register record numbers of infections at the back of one of the world’s highest death rates. Some people have already found a way to fuel the fire, using footage of Dr. Anthony Fauci to question and criticize the face mask’s role in the fight against COVID-19, or even images from opening night of the Washington Nationals baseball game where he sat isolated in a nearly empty stadium.
While the video has been viewed over 2.5 million times on Facebook, it omits a quote by the infectious disease expert on purpose to perpetuate wrong and misleading information. Dr. Fauci is on record reiterating his support for a face mask as the understanding of COVID-19 improved.
https://callputstrike.com/2020/07/24/facemasks-fauci-the-economy-covid-19-conspiracy-theories/
The Office of the Comptroller of Currency has set the stage for cryptocurrency mainstream adoption in the U.S. In a public letter, the department has made it clear that national banks across the country can hold onto cryptographic keys for cryptocurrency wallets paving the way for banks to start holding digital assets for clients.
The declaration marks a major milestone in the evolution of cryptocurrency that have become part and parcel of people’s lives. Previously, crypto exchanges, as well as digital wallets, were the only ones offering custody services for digital assets. That is set to change as large financial institutions at the heart of the U.S financial system, can now venture into the booming crypto world, conversely, fuel mainstream adoption.
Tech Sell-Off Ends Four-Day Winning Streak & Dollar Weakens – Daily Financial News Summary For Thursday, July 23, 2020
A tech sell-off on Thursday afternoon sent the markets spinning and ended a four-day winning streak. The Dow Jones was down 1.3%, the S&P 500 down 1.2%, and the Nasdaq was today’s biggest loser down 2.2%. Meanwhile, the Russell 2000 inched just a touch higher rising by 0.0042%. The Stoxx Europe 600 Index closed up 0.1%.
In currencies, the euro gained 0.2% to exchange at $1.1593, reaching the strongest in more than 21 months on its fifth consecutive advance. The Japanese yen added 0.3% to reach 106.84 per dollar. The Bloomberg Dollar Spot Index lost 0.1%.
The tech sector struggled with Microsoft shares sliding 4.3% after reporting better earnings. The big item that sunk the stock today was that LinkedIn, their subsidiary company, was knocked down due to a weakened job market.
After a rally yesterday, Tesla ended up giving up most of its gains by falling around 5%. Netflix dipped 2.5%, Amazon fell 3.6%, and Apple closed 4.5% lower on the day.
As we reported yesterday evening ahead of the numbers released today, jobs impacted the markets as well. U.S. weekly jobless claims came in at 1.416 million for last week, marking the 18th straight week in which initial claims totaled more than 1 million. A stimulus package is expected next week, however, the $600 stimulus benefit for unemployment likely will be shrinking to just $100 or $200 based on various sources.
Green Properties: The New Norm In Real Estate & No Longer A Luxury
Going green is the new norm in the real estate sector as the race to cut long term carbon footprint heats up. Green properties are increasingly cropping up around the world has become as developers look to leverage their synergies in addition to conserving the environment.
In the race for a more sustainable world, the way buildings are constructed has drastically changed. Green building practices have become the standard in most countries wary of the impact of climate change and global warming. Developers are not only shifting towards green properties given their competitive advantage but also as a way of cutting down on the high-carbon asset class.
July Jobs Picture Worsens While Gold & Silver Glisten – Daily Financial News Summary For Wednesday, July 22, 2020
We saw the S&P 500 and the Dow Jones gain 0.6%, while the Nasdaq snuck higher just 0.2% on Wednesday. The S&P 500 traded at its highest level since February, mostly thanks to tech stocks.
Silver saw its biggest jump since March by more than 8% and gold rose past $1,870. Both exchange-traded funds, or ETFs, backed by silver are also at their highest. Gold ETF holdings saw their biggest gains since mid-June and also sit at their highest levels ever.
We saw a few pieces of news come full circle from Call Put Strike’s original reporting today, including that of Tesla’s new Gigafactory being confirmed just outside of Austin, TX. We originally reported on the rumors back in May. This was announced during their quarterly earnings report which sent the stock soaring above $1700 a share for a brief period after announcing its first year of profitability on a GAAP basis, which also means it could be considered for the S&P 500 now.
Treasury And Bond Yields Falter Amid Stimulus Talks Uncertainty
Treasury Yields are being hammered as uncertainty continues to grip the capital markets amid the havoc-causing COVID-19 pandemic. The 10-year Treasury note and the 30-year Treasury bond are on a downward spiral now that it has become clear that a new round of fiscal stimulus is highly needed to stabilize the struggling U.S economy.
The 10-year Treasury note slid to lows of 0.606% as the 30-year Treasury bond slid to 1.302% as the U.S States continue to report record numbers of coronavirus cases. A fifth consecutive day of record numbers of infections, continue to arouse concerns in the bond markets.
EU Stimulus Approved, European ETFs Rally & Markets Close Mixed – Daily Financial News Summary For Tuesday, July 21, 2020
Another day of musical chairs in the markets as the three main market indexes shifted again. The Nasdaq sunk 0.8%, while the Dow Jones gained 0.6% and the S&P 500 snuck 0.2% higher.
Tech dipped downward from the big Amazon gains yesterday, giving Apple, Amazon, Netflix, Facebook, and Microsoft a 1% loss on the day, while Alphabet saw a 0.5% loss.
As the markets closed, United Airlines announced a second-quarter loss of $1.6 billion. While the stock got jumpy during the announcement, at the time of publishing, the share price was up about 2% in after-market trading. Meanwhile, Delta closed the day up 0.8%, American Airlines stayed even with no gains on the day at market close, and Southwest Airlines was up 1.94% on the day.
The European Commission approved a 750 billion euro stimulus to help the European Union countries and industries that have been impacted by Coronavirus. Meanwhile, the United States anxiously awaits plans for next steps in Coronavirus relief plans as programs such as the $600 unemployment benefit and other mortgage and rent relief programs reach their expiration dates.
Stock Market Is Overvalued, Expect Square-Root Recovery: Leon Cooperman
The U.S stock market and the economy are lacking many of the underlying principles previously used to explain them historically. Those are sentiments echoed by hedge fund billionaire, Leon Cooperman. He is the chairman and CEO of Omega Advisors, a New York-based investment advisory firm managing over $3.3 billion in assets under management. According to the billionaire investor, at current levels, the market is overvalued, having failed to price in, or factor, some of the developments that signal economic growth stagnation.
“If you go back to your school days — you have a sharp movement down, you have a bounceback, but… the growth rate in the economy going forward will be less than people think,” Cooperman said and predicted the market will see a square-root shaped recovery, similar to his thoughts following the 2009 market crash.
NYC Retail Real Estate Falls As Much As 30% & Amazon Rallies Markets Higher – Daily Financial News Summary For Monday, July 20, 2020
Markets rallied Monday as the Nasdaq rose 2.5%, the S&P 500 was up 0.8%, while the Dow Jones inched its way higher by 0.03% after starting the day in the red.
Amazon saw its share price skyrocket 7.9% and post its best day since December 2018 following the price target on Amazon stock being bumped up to $3,800 per share. This is the highest price target on Wall Street at the moment. Apple saw a 2.1% gain, Alphabet was up 3.1%, Microsoft spiked 4.3%, while Facebook and Netflix trailed with an increase of 1% each.
As we reported last week, Pfizer and BioNTech are making headway on a joint coronavirus vaccine, which reported further results that gave both a bump in stock prices today. BioNTech saw a 3.4% gain and Pfizer a 0.6% bump in share price. Synairgen, a British pharmaceutical company, saw its shares skyrocket 350% higher after news of a respiratory medication is reducing the number of COVID-19 hospitalizations in their clinical trial.
A handful of companies made noise in after-hours trading, including Moderna, which dipped another 1% after falling over 12.8% earlier in the day. This was a result of the positive news on the Pfizer and BioNTech progress.
Tips On Avoiding Anxiety About Retirement and How To Boost You Retirement Nest
As you get close to retirement age you may start becoming worried that you will not be able to afford retirement. This is the predicament that older adults are finding themselves in and thus some have to work longer or find alternative ways of ensuring they have saved enough for retirement. Most importantly, when thinking about retirement, it is vital to begin investing and saving earlier. Here are some tips to help you avoid panicking and boost your savings.
It is important to pay attention to your finance as this will help you stay ahead of problems before they happen. Usually, managing personal finances intimidates or stress people so in most cases people ignore them. Checking on your accounts can help relieve the anxiety you may have about not being ready for retirement.
Tech Sector Slumps Despite Flat Friday – Daily Financial News Summary For Friday, July 17, 2020
A pretty flat Friday in the markets as we head into the weekend. The Dow Jones slipped 0.2%, the Nasdaq was up 0.3%, and the S&P 500 also saw 0.3% gains. The Nasdaq was the only major market to close in the red this week.
Tech stocks remained skittish on Friday following a missed earnings report by Netflix Thursday evening, they fell 6.5%. Amazon had its first down week in 11 weeks, with a 1.2% slide on Friday, while Microsoft pulled back 0.5% and Apple was 0.2% in the red.
Twitter stock rebounded on Friday to a share price of $35.81, up 1.5% on the day. This is following the Twitter/Bitcoin hack that took over the accounts of prominent figures like former President Barack Obama, Bill Gates, Kanye West, Elon Musk, and others.
U.S Housing Market Contraction Amidst Economic Uncertainty
The housing market is heating up after starting the year on a roll. The COVID-19 pandemic has taken a toll on various sectors of the economy, with the housing industry not spared a bit. Uncertainty is the theme that continues to take a toll on the once burgeoning segment of the U.S economy.
https://callputstrike.com/2020/07/17/u-s-housing-market-contraction-amidst-economic-uncertainty/
Twitter Security Practices Under Scrutiny After Bitcoin Giveaway Hack
Twitter’s vulnerability was yet gain laid bare as a number of high profile twitter account fell in the hands of hackers who ended up propagating a Bitcoin giveaway scam. While most people are increasingly blaming Bitcoin, the social networking giant also has some blame to bear given the way the hackers were able to access the high-profile Twitter accounts.
The incident started with the hackers targeting Twitter employees conversely gaining access to the networking site through an admin tool. With the access, the hackers targeted Twitter accounts of the likes of Uber, Apple, Bill Gates, Barack Obama, and Elon Musk, among others.
Netflix Chills With Missed Earnings & Bond ETFs Big Promise – Daily Financial News Summary For Thursday, July 16, 2020
Thursday saw all markets close in the red. The Dow Jones was down 0.5%, while the Nasdaq dropped 0.7% and the S&P 500 dipped to 0.3%.
Amazon had a slightly down day by 0.3%, which left it sitting just below the $3,000 mark at $2,999.90. Microsoft and Apple both sunk by over 1%. Netflix was up 0.8% at the end of the day pending earnings reports, which missed estimates and sent the stock plummeting around 10% in after-hours trading to $461.29 at its low point at the time of publishing.
Federal Reserve Policy Boosts Bonds In Era of Low-Interest Rates
The U.S bond market has always been bigger than the stock market, and the trend is not expected to change anytime soon amid a dovish outlook in the sector. Immediate data indicates that over $40 trillion is invested in the bond market against $30 trillion in the stock markets.
Bonds have always been a firm favorite for investors, given the guaranteed returns on offer when dealing with high-quality bonds. While stock markets guarantee investors high returns, the risk that investors must contend with is always high.
In the run-up to the COVID-19 crisis, bonds were on high demand as investors rushed to take advantage of a high-interest rate. Bonds sold by blue-chip companies sold off as investors rushed to get hold of high coupons.
Sentiments in the bond market nosedived in the wake of the Federal Reserve passing a string of fiscal and stimulus plans to protect the market in the wake of the pandemic. Sentiments hit an all-time low as the U.S cut interest rates to record lows all in the effort of boosting liquidity levels.
While a dovish monetary policy by the Federal Reserve is likely to keep interest rates at all-time lows, investors will continue to bet on riskier corporate bonds to eke out higher returns.
Bonds, ETFS, Gold, Investing, Market Insider, News, Stock Market, Trader Talk
Bearish Bitcoin, Twitter Gets Hacked & Goldman Sachs Surges – Daily Financial News Summary For Wednesday, July 15, 2020
Today we’ll consider the extended tax deadline edition…
The middle of the week kept the market’s spirits high. The S&P 500 and the Dow Jones were both up 0.9%, while the Nasdaq was up 0.5%, while the small-cap stock index, the Russell 2000, decided today was the time to climb. It grew 3.5% for the largest single-day gain since early June.
While areas of the stock market remain volatile, Bitcoin has been seeing a somewhat unusual run of stability. Bitcoin (BTC) slipped 1% over the previous 24 hours with a 24-hour range of $9,153-$9,279. This puts it below the 10-day and 50-day moving average, which some are saying is a bearish signal after optimism the cryptocurrency would see its value surpass $10,000 in the near future.
Jack Tan, the founding partner of Taiwan-based firm Kronos Research, said, “Trading bitcoins is about as exciting as sitting in traffic, I’m guessing bitcoin’s time will come in the next couple of months, but for now just enjoy the altcoin and equities rallies.”
Moderna stock price rose 6.9% following information published by the New England Journal of Medicine showing Moderna’s coronavirus vaccine produced neutralizing antibodies in all 45 patients in its early stage human trial.
What Has The U.S-China Trade-War Taught Us After One Year? Winners vs. Losers
One year since it started, the U.S-China trade war is far from over, having had casualties and disrupting the way countries trade with each other. The most significant casualties have been U.S and Chinese companies that have had to change their investment plans in the two countries and how they do business.
Bitcoin, Cryptocurrency, Investing, Market Insider, News, Stock Market, Trader Talk
Wells Fargo Misses Earnings, Tech Titans Tilt Downward & COVID Climb Continues – Daily Financial News Summary For Tuesday, July 14, 2020
What goes down, must come up. Another tumultuous day in the markets. The S&P 500 was up 1.4%, the Nasdaq up 1%, and the Dow Jones managed to climb 2.3% on Tuesday.
While the markets were up, some of the tech titans saw losses, including Amazon and Netflix being down more than 1%, while Facebook and Alphabet/Google, were down just 0.1%.
Netflix saw losses after it was downgraded by UBS from buy to neutral over concerns of the stock being overvalued. It is up 60% on the year, much of which is a result of more people staying at home due to Coronavirus quarantines. While it closed being down just around 1%, at moments in the trading day, it was down as much as 6.7%.
Wells Fargo had a tough earnings reporting day after revealing it would be cutting its dividend to 51 cents per share, which is 10 cents less than prior dividends. They also reported a $2.4 billion loss, which resulted in a 5% slide in the share price.
JP Morgan Chase, on the other hand, saw a 79% leap in trading revenue to $9.7 billion as a result of equities and bond trading. They also exceeded the total revenue estimate of $30.3 billion with revenues reaching $33 billion. It closed the day 0.57% higher.
Five Personal Finance Lessons The COVID-19 Pandemic Has Taught Us
The COVID-19 Pandemic has dramatically affected the social and financial lives of people. Many businesses have been impacted, resulting in reduced salaries and even furloughing employees as uncertainty continues to grow. The pandemic has taught several lessons about personal finances that they can adapt to when facing an economic downturn. Here are five personal finance lessons from the COVID-19 pandemic:
The first lesson that the pandemic has taught us is that our finances are fragile, evidenced by the growing unemployment. Most people have lost their sources of income, which further stresses the need to have an emergency fund. With the pandemic realities, those who still have income have realized the need to save more every month.
Tesla’s Wild Ride While Markets Rise & Fall On COVID Concerns – Daily Financial Summary For Monday, July 13, 2020
The S&P 500 ended the day down 0.9%, the Nasdaq was down 2.1%, while the Dow Jones managed to sneak back up to positive territory at the close of the markets to be up about 0.04%.
The S&P 500 touched positive territory for 2020 just briefly today, before markets turned downward following there morning rallies out of the weekend. The Nasdaq was up as much as 1.95% before tumbling to close the day 2.1% in the red. The Dow and S&P 500 were coming off of two weeks of gains, and the Nasdaq was on a three-week run. It remains unseen how the rest of the week will play out.
Tech industry leaders Facebook, Alphabet, and Amazon fell at least 1.7% on the day, despite the optimism that these companies remain limited by COVID-19 impacts among investors.
ETF TRENDS: Top Exchange Traded Funds (ETFs) To Earn At Least 3% Yield
Interest rates, at record lows, have made it extremely difficult for investors to generate solid current income in the capital markets. The situation is the same in many countries, given the meager interest rates from government bonds. Traders are increasingly turning to Exchange Traded Funds, or ETFs, to bolster investment portfolios given their sizeable and benchmark beating yields.
High yielding ETFs are increasingly providing investors with avenues to compensate for capital losses in the equity markets. ETFs that offer 3% yields and above and have decent price performance could be the best alternatives for riding the challenging environment fueled by COVID-19.
Amid the disruptions triggered by COVID-19, some ETFs continue to outperform the overall stock market at the back of a perfect opportunity fuelled by the pandemic. ETFs focused on e-commerce outlets have emerged as ideal investment alternatives for riding out the challenging investment environment.
READ MORE: https://callputstrike.com/2020/07/13/top-exchange-traded-funds-etfs-to-earn-at-least-3-yield/
ETFS, Investing, Market Insider, News, Personal Finance, Stock Market, Trader Talk
Gilead’s Coronavirus Treatment Leads Market Optimism To Close The Week Higher – Daily Financial News Summary for Friday, July 10, 2020
The S&P 500 climbed 1.05% to 3,185.04. The Dow Jones Industrial Average gained 369.21 points, or 1.44%, to close this week at 26,075.30. The Nasdaq closed in the green and was up 0.66% to 10,617.44.
Optimistic news about remdesivir, a potential coronavirus treatment from Gilead Sciences, contributed to the rally in the markets despite a slow start in the morning. Gilead Sciences said of remdesivir that it “was associated with an improvement in clinical recovery and a 62 percent reduction in the risk of mortality compared with standard of care.”
Amazon also saw a 0.5% bump to put it at another record high price after Citi increased its target price to $3,550. Meanwhile, Netflix continued its record-breaking closes this week as it was up 8%
U.S Real Estate Blossoming amid Strong Industrial Warehouse Demand for E-Commerce
The real estate bubble was the catalyst behind the 2009 financial crisis. Fast forward, the global economy is on the cusp of yet another economic meltdown, fueled by the COVID-19 pandemic. Even as key sectors in the U.S economy continue to reel from the effects of COVID-19, real estate has emerged as a soft spot, doing exceedingly well amidst the challenges.
COVID-19 has changed the way people live as it continues to rattle key sectors of the global economy. The social distancing measures put in place to curb the spread of the virus has, to a great extent, changed the way people do shopping to the extent of reinvigorating the industrial real estate segment.
Shoppers are no longer flocking to brick and mortar stores for shopping. Shopping online and having the items delivered to consumer’s doorsteps is a trend that has increased in the U.S. With the change, e-commerce platforms are enjoying a booming business.
Dogecoin Explodes To Two-Year Highs Following Tik-Tok Pump Challenge
https://callputstrike.com/2020/07/10/dogecoin-explodes-two-year-highs-on-tik-tok-challenge-pump/
Florida Coronavirus Cases Spook Markets While Tech Rides High – Daily Financial News Summary For Thursday, July 9, 2020
Mixed markets today as the Nasdaq reached record highs after closing up 0.5%, while the Dow Jones slid 0.5% and the S&P 500 fell 0.6%.
Some of today’s biggest winners were Amazon, which was up 3.3%, Costco was up 2.915%, while Walmart closed up 2.66%. Video game company Electronic Arts saw shares go up 2.35%.
While many were up today, Walgreens Boots Alliance saw shares dive 7.8% as a result of their missed earnings. Much of the negative reaction was attributed to their Boots UK stores low sales numbers from low foot traffic due to stay-at-home orders. They plan to cut 4,000 jobs in the Boots UK business as a result.
Others that saw losses included Kohl’s retail and United Airlines, which both were down 7.25%. Oil and gas stocks also took a hit with Hess Corp down 9.4%, Phillips 66 down 7.8%, and Marathon Oil down over 7% today.
Hong Kong National Security Law Threat To U.S Tech Giants And Financial Institutions
China imposing Hong Kong Security Bill 2020 and the U.S retaliating with a new sanction bill is a tailwind that threatens U.S companies’ operations in the former British colony. The security law has already had its first casualty, ByteDance, has announced it is ending support for video service TikTok in Hong Kong.
With the passing of the Hong Kong national security law, Beijing now has sweeping powers to prosecute any entity it perceives as a threat to national security. On its part, Washington has responded the best way it knows, fearing its interests in the semi-autonomous region are at considerable risk.
The U.S Congress has already passed a bill that establishes penalties to foreign persons or entities that undermine Hong Kong one country, two systems, under the new security law. The bill gives the government of the day the power to block assets and deny U.S entry to entities that implement the security law.
Apple & Coronavirus Hits Record Highs, While Twitter “Gryphon’s” Higher – Daily Financial News Summary for Wednesday, July 8, 2020
Today saw the Dow Jones rise 0.7%, the S&P 500 went up 0.8%, and the NASDAQ saw gains of 1.2% and put it on the books for a record high day at 10,492.50.
Speaking of records, Apple also saw 2.3% gains to close the day at a record high of $381.37 after Deutsche Bank analysts gave them a positive price target increase. Amazon also saw 2.7% gains, while Netflix and Microsoft also closed over 2% higher.
Social media platform Twitter also saw an unusual uptick in share price, closing over 7% higher on the day as a result of a job posting for a code-named project “Gryphon.” The job posting made mention of a subscription platform and feature, which excited the markets and had the share price up over 12% at a point in the day.
Bed Bath & Beyond (NASDAQ: BBBY) announced after the closing bell that their sales fell nearly 50% to $1.31 billion from $2.57 billion a year ago. In an effort to try to get back to profitability, the company also announced they will be closing close to 200 stores over the next two years. The news resulted in a 7% drop in after-hours trading.
Microsoft Eyes Warner Bros To Expand Gaming Division
Microsoft Corporation (NASDAQ: MSFT) has joined the fray in the acquisition of Warner Bros Interactive Entertainment. The acquisition would allow the tech giant to strengthen its gaming division, having already acquired several game-development studios in the recent past.
AT&T Inc. (NYSE:T) is looking for potential buyers of the Interactive Entertainment division as it seems to generate additional capital to shrug off the effects of the COVID-19 pandemic. The company is also looking to pay down part of its debt that has ballooned to highs of $154 billion.
The wireless carrier acquired Time Warner for $109 billion in 2018, conversely gaining access to Warner Bros Interactive Entertainment. The acquisition is believed to be the primary catalyst behind the massive debt holding.
https://callputstrike.com/2020/07/08/microsoft-eyes-warner-bros-to-expand-gaming-division/
Trump Vows Schools Reopen & Travel Stocks Sink – Daily Financial News Summary for Tuesday, July 7, 2020
After a big day of gains yesterday, today’s results rebounded back and we saw losses across the markets, including a slide just before the closing bell to put the markets deeper in the red. The Dow Jones closed down 1.51%, the S&P 500 was down 1.08%, while the NASDAQ ended down 0.86%. This ended five days in the green for the NASDAQ and the S&P 500.
Travel stocks continue to suffer as the yo-yo effects of reopening and COVID threats impact travel domestically and internationally. Norwegian Cruise Line and Carnival were both down by more than 5% each, while United Airlines was down by 7.6% as they announced additional furlough and layoff warnings. American Airlines also saw it’s stock close the day 6.95% lower.
Levi Strauss & Company announced that sales were down 62% in the second quarter and that the company also plans to cut about 15% of its global workforce as a result. That dive in sales was a result of their retail locations being closed for nearly 10 weeks and their need to rely on online sales, which could not cover the retail sales.
According to Peter Cardillo, the chief market economist at Spartan Capital Securities, “This market is way overbought. This market has been ignoring the potential problems that are going to arise from the coronavirus.”
President Donald Trump plans to keep schools on track to be reopened in the fall despite COVID cases continuing to grow, he said in a White House event today. More than 50 million children attend school in the United States.
“We’re very much going to put pressure on the governors and the schools to reopen, open your schools in the fall,” the President said.
TikTok, owned by Beijing-based ByteDance, is again become a target on the radar of another government. After India announced bans of TikTok this past week, among other Chinese technologies, Secretary of State, Mike Pompeo, said Tuesday that the United States is also looking at banning the popular social media app, along with other Chinese social media apps that may be creating national security concerns.
Stock Insights: Samsung Q2 Profit Up 23% Amid Covid-19 Disruptions
Samsung Electronics Co., Ltd (OTCMKTS:SSNLF) weathered COVID-19 disruptions in Q2, going by the stellar financial results for the three months ended June. The South Korean juggernaut saw underlying profits come in better than expected, helped by surging internet traffic that saw chip demand surge to record levels. The hardware giant also benefited from a spike in hardware demand as more people were forced to work from home in the quarter.
Operating profits were up 23% coming in at 8.1 trillion won or $6.8 billion in the quarter compared to 6.2 trillion reported in the same quarter last year. Net sales totaled 52 trillion won driven by strong demand or chips used in making internet devices.
https://callputstrike.com/2020/07/07/samsung-q2-profit-up-23-amid-covid-19-disruptions/
Markets See Fireworks With Netflix & Amazon Seeing All-Time Highs – Daily Financial News Summary for Monday, July 6, 2020
The markets saw post-Fourth of July fireworks on Monday. The Dow Jones rose by 1.78%, the S&P 500 by 1.59%, and the NASDAQ by 2.21%. The Russell 2000 rose at 0.77%, but did not feel the rally as much as the primary indexes. This was an all-time high for the NASDAQ composite.
The markets saw a couple deals that influenced the rallies, including Warren Buffett’s Berkshire Hathaway making its first major deal amid market turmoil for the year. Berkshire Hathway acquired natural gas storage and transmission assets from Dominion Energy, which caused the Berkshire Hathaway A-class of shares to jump 2.4%, while Dominion Energy dropped 11%.
Food delivery app Postmates was also acquired by Uber Technologies, in a $2.65 billion all-stock deal. This is likely going to give Uber Eats a gain in market share against competitors and sources said the deal was struck as Postmates experienced cashflow issues.
READ MORE: https://callputstrike.com/2020/07/06/markets-see-fireworks-with-netflix-amazon-seeing-all-time-highs-daily-financial-news-summary-for-monday-july-6-2020/
Deal Insights: Uber Signs Deal To Acquire Postmates For $2.65 billion
Uber Technologies Inc (NYSE: UBER) has reportedly inked a deal that will allow it to acquire a food delivery company called Postmates for $2.65 billion through an all-stock deal.
The acquisition aligns with Uber’s plan to double down on the food delivery business, and Postmates is the perfect match since it has already built a strong reputation through its food delivery app. The Initial reports about the colossal acquisition deal popped up during the weekend after Uber’s board of directors approved the deal.
Uber already has a food delivery business called Uber Eats that it has been working towards improving so that it can compete more effectively with rivals in the same segment. The food delivery business aligns with its ride-hailing business model, allowing it to tap into those synergies to generate more revenue.
Uber is expected to reveal whether Postmates will be operated under Uber Eats as part of the acquisition or whether it will entirely absorb it. Pierre-Dimitri Gore-Coty, the current executive in charge of Uber Eats, is expected to operate the expanded food delivery business. Sources familiar with the matter claim that Postmate’s CEO, Bastian Lehmann, will stay on board with his team to help run the food delivery business even after the acquisition deal is complete.
READ MORE: https://callputstrike.com/2020/07/06/uber-signs-deal-to-acquire-postmates-for-2-65-billion/
Editors Note: Have a great 4th of July weekend. The markets are closed Friday, July 3rd, so Call Put Strike will resume publishing on Monday, July 6, 2020.
The final trading day of the week ended in the positives for major indexes. The Dow Jones rose by 0.36%, the S&P 500 by 0.45%, and the NASDAQ by 0.52%. The NASDAQ hit an intraday high, as well as a record closing high today. The Dow Jones gained 3.9% this week, while the S&P 500 was up by over 4% this week and the NASDAQ saw increases of 5.2% this week.
Economists are predicting that the employment level in certain industries will never return to what it was before Covid19. This includes the retail, leisure and hospitality, and bar/restaurant industries.
Moderna released new information today that their potential Covid19 vaccine trials will be delayed. Moderna had previously released results from its early-stage trial, showing positive changes in Covid19 patients. Now the late-stage trial will be delayed to an unknown timeframe. Shares of the company were down by over 6% today.
Tesla increased in value again today, as the company outperformed analyst’s expectations. The company has delivered close to 90,650 vehicles in the second quarter, compared to the expected 72,000 deliveries.
New cases of Covid19 continue to rise across the country. Florida has reported an increase of 10,109 new cases on Thursday, which is the largest single-day climb yet. New York has decided to postpone its plans to reopen indoor dining. California has also been forced to pause reopening indoor activities, as thousands of new cases are being reported every day.
The June U.S. jobs report was released Thursday, early due to the Fourth of July holiday. 4.8 million nonfarm jobs were added to the economy within the month. In addition to this, the unemployment rate fell back down to 11.1%. This was much better than previous predictions. Economists had expected an increase in jobs of 2.9 million and an unemployment rate of 12.4%.
For the week ending June 27, the number of Americans filing for unemployment rose by 1.427 million. This is a greater number than was expected. The expectation from economists was that the number would be 1.38 million.
Lemonade, a home insurance company, opened for trading on the NYSE today. Its initial IPO price was $29 per share, but this rose to $50.06 per share, nearly a 73% increase. 11 million shares were sold during the company’s IPO, which resulted in a gain of $319 million.
Avis Budget cars rose by 6% in premarket trading today. The stock had been upgraded to overweight by a representative from Morgan Stanley. He spoke about how the car rental company is recovering quicker than expected. During trading throughout the day, Avis Budget continued to rise to gain close to 17%.
President Trump spoke at a press conference today about the jump in job increases that occurred last month. He said: “Today’s announcement proves that our economy is roaring back. It’s coming back extremely strong. We have some areas where we’re putting out the flames of the fires … I think it’s working out very well.”
