Another day makes investors wonder whether the ongoing coronavirus crisis could trigger some bigger correction on stock markets. As European equities tend to slide, the pace of the downturn is not that significant as yesterday. On the other hand, U.S. stocks opened higher with DJIA and S&P 500 posting some slight gains. Nasdaq is surging over 1.10% at press time.
Meanwhile, U.S. reported record single-day spike of 60,021 new cases today. Recently four states have accounted for almost half of new cases as the situation in these places is clearly getting out of control. Texas alone reported over 10,000 new infected people. According to a CNBC analysis of data, cases were growing by at least 5% in 37 states as of Tuesday.
S&P 500 (US500) is posting some gains despite the record single-day spike of coronavirus cases in the U.S. As usual, technological companies lead early gains as investors rush to buy FANGMAN in particular (which stand for: Facebook, Amazon, Netflix, Google, Microsoft, Apple, Nvidia). US500 managed to bounce back from the 78.6% Fibo retracement of the February-March sell-off. Source: xStation5
Nikola (NKLA.US) was raised to “overweight” from “neutral” at JPMorgan. Analysts point out that stock is “starting to look attractive for long-term investors in view of a number of potential positive catalysts in coming weeks and months”. Nikola shares were already rising in the pre-market trading and later stock opened with a bullish gap at the beginning of the cash session.
After huge gains at the beginning of June, Nikola (NKLA.US) stock started to trade sideways. The $69 area is a barrier were many price reactions took place. As shares were trading in a downward trend in recent days, stock opened with a bullish gap today. According to JPMorgan analysts, the company might be a good choice for long-term investors amid a number of potential positive catalyst in the future. Source: xStation5
Levi Strauss (LEVI.US) reported its earnings results after market close on Tuesday. Stock price fell in late trading following a 62% drop in second-quarter net revenue (YoY). Moreover, the company announced that it would cut 700 jobs.
Facebook (FB.US) announced that it will not launch its new Facebook Oversight Board until late fall. The independent board is designed to keep Facebook posts in check. It is supposed to review videos, photos and other content. Plans to create it were already announced in November 2018
AMC Entertainment Holdings (AMC.US) is supposedly close to a restructuring deal which could help avoid a near-term bankruptcy filing. The company is the largest U.S. cinema chain and, as one could imagine, that business is particularly prone to the ongoing crisis. According to The Wall Street Journal, the deal could be announced within days. Shares were rising in the pre-market trading amid the promising news.
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