Monday's Headlines: Market Worries Over New Coronavirus Outbreaks
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Trupanion (TRUP) +11.3%
Retail Opportunity Investments Corp (ROIC) +9.5%
StoneCo (STNE) +7.0%
Align Technology (ALGN) +5.5%
Ford Motor Company (F) +5.4%
Moving Down ⬇️
Zoom Communications (ZM) -1.1%
Netflix (NFLX) -1.8%
BlackLine (BL) -2.2%
Lululemon (LULU) -3.8%
Tesla Motors (TSLA) -3.9%1.
1. The market looks set to open lower today as fears over a second-wave of COVID-19 outbreaks intensify. After a choppy last week, all three major U.S. indexes — the S&P 500, the Dow Jones, and the Nasdaq — point towards more losses this morning as the total number of confirmed domestic cases passes 2 million. Internationally, the picture looks equally as bleak, with parts of Beijing now closed down once again due to record numbers of new daily coronavirus infections. Read more on this here.
2. Hertz (HTZ) is making the most of its time in the limelight with new plans to sell up to $1 billion worth of stock. The bankrupt car rental service recently gained notoriety after its stock jumped close to 900%, in a rally that was allegedly driven by speculative investors on cheap trading apps trying to cash in on a "cheap" stock. According to the company, the authorization by a bankruptcy judge to issue new stock is a "unique opportunity" for Hertz to raise capital for its restructuring efforts. However, it's also important to note that there is a real threat of shareholder value being completely wiped out due to the struggles being faced by the company. Find out more here.
3. Lululemon (LULU) is the latest retailer to report on the impact of the COVID-19 lockdowns, with sales in the last quarter down 17% from the same time last year. Reporting on its first-quarter results on Friday, the athleisure pioneer saw revenue fall to $651.96 million from $782.3 million a year ago and didn’t report same-store sales because of the temporary store closures. However, the company said that it expects all of its U.S. stores to be open by the end of the month, while online sales have started coming to the fore by surging 125% during the month of April alone. Read more here.