Monday's Headlines: Prepare For Earnings Season
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
Duluth Trading (DLTH) +12.4%
Tesla Motors (TSLA) +10.8%
Netflix (NFLX) +8.1%
Peloton Interactive (PTON) +6.2%
Silicon Valley Bank (SIVB) +5.1%
Moving Down ⬇️
Baozun (BZUN) -3.1%
Pinterest (PINS) -3.1%
Stitch Fix (SFIX) -3.4%
Evolent Health (EVH) -3.6%
StoneCo (STNE) -4.0%
1. In what is becoming a bit of a 'copy/paste' lede for us here at MyWallSt, the Dow Jones futures rose 200 points in early morning trading today despite a record number of coronavirus cases reported across the U.S. over the weekend. With more than 60,000 new cases reported daily for the last three days now — including 15,300 in Florida alone yesterday — questions are being asked about the wisdom of reopening businesses. In Texas, one of the national epicenters of the disease, the Governor has warned that a second lockdown might be on the way, while Atlanta is already reverting its residents back to Phase 1 guidelines. Read more on this here.
2. Speaking of COVID-19, earnings season starts this week with some of the major banks reporting on their first full quarter operating in a global pandemic. Analysts are expecting to see the weakest corporate earnings since the Financial Crisis thanks to the effects of the recent lockdown, with banks, in particular, being hit by a low-rate environment and loan-loss provisions taken. However, many people will be looking closely as Netflix (NFLX) also reports on its earnings on Thursday, with the company assumed by many to be one of the beneficiaries of the stay-at-home orders. Read more here.
3. Tensions between the U.S. and China seem to be ramping up again after the White House trade advisor Peter Navarro dubbed TikTok’s new CEO Kevin Mayer as an “American puppet”. In an interview with Fox Business over the weekend, Navarro also warned that there would be "strong action" taken against TikTok and other Chinese apps by President Trump, although he didn't elaborate on the nature of this action. Despite its widespread popularity, TikTok has been under scrutiny by the U.S. government over data collection and privacy concerns. More on this here.