Thursday’s Headlines: We’re In For A Bumpy Thursday...
1. Risk aversion from investors amid the deepening coronavirus crisis continued to plague Wall Street on Wednesday, sending the Dow 4.4% lower. Analysts are expecting another choppy day on Thursday, with last week’s initial jobless claims due for publication at 8:30 a.m. as economists estimate unemployment claims could hit between 4 and 5 million. With 5,000 confirmed deaths in the U.S. as of Wednesday night, and new measures keeping 80% of Americans in lockdown, there are some dark days ahead for the economy. Read more here.
2. Another blow for popular video-conferencing app Zoom yesterday as CEO Elon Musk banned SpaceX employees from using the software. Also CEO of Tesla, Musk cited “significant privacy and security concerns,” days after U.S. law enforcement warned users about the security of the app. Zoom saw its share price fall more than 6% on Wednesday following the reports, but is still up more than 80% since it was added to the MyWallSt app back in January. Get the full story here.
3. It looks like troubled ‘tech’ startup WeWork is running out of financial options, after its main backer, SoftBank, pulled out of a bailout plan yesterday. The company was to receive a $3 billion tender offer from SoftBank for additional WeWork shares, as agreed in a bailout deal set forth last September, which also saw Neumann ousted as CEO. SoftBank cites issues such as a failure to recapitalize WeWork’s struggling joint venture in China, criminal and civil investigations into the startup and the impact of the coronavirus pandemic on the business, as reasons for reneging on the deal. WeWork is expected to take legal action against the move. Read the complete story here.
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Moving Down ⬇️