Wednesday's Headlines: U.S. Senate Race Sends Stocks Falling

Wednesday's Headlines: U.S. Senate Race Sends Stocks Falling

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Lemonade (LMND) +7.6%

Eventbrite (EB) +6.9%

Roku Inc. (ROKU) +5.4%

Tripadvisor (TRIP) +5.3%

Duluth Trading (DLTH) +5.3%

Moving Down ⬇️

Workday (WDAY) -1.2%

Twitter (TWTR) -1.2%

Costco (COST) -1.2%

Mastercard (MA) -1.2%

Coca-Cola (KO) -1.1%

1. U.S. futures are tumbling this morning as Wall Street braces for a potential Blue Wave. The Nasdaq (QQQ) has fallen more than 1% whilst the S&P 500 (VOO) and Dow Jones (DIA) are also trading in the red today as investors wait for the results of the Senate run-off election in Georgia that will determine the balance of power in Washington. A Democrat Senate would allow President-elect Joe Biden to drive decisive fiscal action by introducing new stimulus support to help accelerate the economy. However, a Democrat-powered Senate might also result in higher corporate taxes and tougher restrictions on Big Tech companies — policies not favoured by Wall Street. Sentiment over a vaccine-powered economic recovery in 2021 has also been dented slightly by the discovery of a more contagious variant of the coronavirus. Read the full story here

2. Despite a global pandemic closing retail stores, people still bought lots of luxury jewellery during the holiday period. Tiffany (TIF) sales reached a record high thanks to online purchases and growing popularity for its shiny products in China. In the jewellery maker's preliminary sales report, Tiffany stated that net sales were up 2% overall while e-commerce sales in China increased more than 50% year-over-year (YoY), but were down 5% in the Americas. Chief Executive Alessandro Bogliolo explained the successful results reflect their multi-year sales strategies with respect to growth in China, e-commerce — which was up 80% (YoY)  — alongside increasing unit retail prices and accelerating product innovations. See the full report here

3. Constellation Brands (STZ) just made one of the largest wine deals in modern history by selling part of its portfolio to Gallo Winery for $810 million. Constellation sold its cheaper brands of wine, which retail at $11 or under, in order to focus on its expensive wines. The deal consisted of approximately $560 million in cash and the option to receive up to $250 million in earnout payments if the brand meets its performance targets over a two-year period. The leading beverage alcohol company also closed its transaction with Gallo to divest the Nobilo wine brand and certain assets for approximately $130 million. Constellation Brands’ president Bill Newlands said “the closing of these deals positions our wine and spirits business for accelerated revenue growth.” Check out the full story here

NicoleNicole

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