Monday’s Headlines: More Good News For Tesla
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
Zoom Communications (ZM) +6.1%
Sea Limited (SE) +5.6%
Teladoc (TDOC) +4.6%
Moving Down ⬇️
Workday (WDAY) -9.3%
Eventbrite (EB) -4.2%
Stitch Fix (SFIX) -4.0%
Intuit (INTU) -3.8%
Wynn Resorts (WYNN) -3.5%
1. Tesla (TSLA) bulls are happy as Musk’s employees are deemed ‘essential workforce’ by California state. The Critical Manufacturing Sector identifies the manufacturing of transportation products as critical, allowing Tesla’s factory staff to continue working with safety precautions in place. Local authorities in Alameda County, home to its Fremont factory, could impose additional restrictions in the future. Tesla shareholders are relieved by the current restrictions and by CFO Zachary Kirkhorn’s confirmation that the electric car manufacturer is still on target for delivering 500,000 vehicles in 2020. Even with Tesla’s new Shanghai factory, that number may still be challenging for the company who only dispatched around 367,500 vehicles in 2019. Check out the full story here.
2. On Friday, Wish filed for its IPO and gave investors plenty to be worried about. Concerns about a possible over reliance on China, where an estimated 94% of its products are sourced, left investors skeptical. Wish’s marketplace revenue fell 8% in Q1 (YoY) due to the outbreak of COVID-19 in China, causing severe manufacturing delays which have run into Q3. Wish has cited threats of new tariffs on $500 billion of Chinese imports and the U.S. setting higher postage rates on inbound mail from China as specific risks. To tackle this issue, Wish has added merchants from North America, Europe, Latin America, and stated that U.S. merchants have grown 268% since 2019. Read the full story here.
3. Despite a bump in COVID-19 cases, Dow (DIA) futures rose by 200 points today. The S&P 500 (VOO) and Nasdaq 100 (NDX) also traded positively this morning amid lockdown concerns. On Friday, the Dow and S&P posted a loss for the week of 0.73% and 0.77%, whilst the Nasdaq managed a 0.22% gain. A potential boost to the stock market in December is likely as optimism around a stimulus package grows. Positive vaccine developments also arrived as The Food and Drug Administration approved emergency use for Regeneron’s COVID-19 antibody treatment, while Pfizer and BioNTech applied for authorization for their coronavirus vaccine. Read the full story here.
There is 1 company on the MyWallSt shortlist that will report earnings during market hours today:
Get this week’s full calendar here.