October 11, 2020
- The major U.S. stock indexes each rose more than 3%, and the $S&P 500 index(.SPX.US)$ posted its best weekly result in three months.
- The $Nasdaq Composite Index(.IXIC.US)$’s nearly 5% rise was the biggest gain among the indexes, leaving it just 4% shy of the record high it set in early September.
More stimulus progress:
- The driver behind the equity-market strength was the anticipation that another stimulus package will eventually be passed despite the shaky negotiations so far. The White House increased its fiscal stimulus offer to $1.8 trillion from $1.6 trillion.
- The White House might increase its offer for a new round of coronavirus stimulus beyond $1.8 trillion and could even propose a package bigger than House Democrats’ $2.2 trillion, Larry Kudlow, the director of the United States National Economic Council, said Sunday.
More fisical help needed:
The U.S. economic recovery has “flattened out” and is in vital need additional support from fiscal policy, said Federal Reserve Bank of Minneapolis President Neel Kashkari.
Earnings season stimulus:
- Investors are entering third-quarter earnings season with brighter expectations for corporate profits, a bet they hope will propel the next leg of the stock market’s rally.
- With the economy continuing to slowly reopen, profits of the large U.S. companies in the flagship stock index are now projected to drop20%from a year earlier in the third quarter. That is an improvement from the25% decline anticipated at the end of June and the 32%drop reported for the second quarter.
- Frank Panayotou, managing director and private wealth adviser at UBS, said,
The actual numbers when they’re reported are going to be much more crucial for the market to interpret, to get a sense really how well this patient is healing.
- $JinkoSolar Holding Co Ltd(JKS.US)$ has been soaring for two consecutive weeks, which gained 42.4% this week and 45.3% last week.
- The PV industry sector surged during past weeks, mainly because carbon emissions and renewable energy are highlighted strategically around the globe, which inspire the long term potential of PV industry development.
- JinkoSolar’s Q2 earnings reported on September 23 is as follows:
- Earnings per share were up 69.01% year over year to $1.20, which beat the estimate of $0.61.
- Revenue of $1,196,000,000 higher by 18.77% from the same period last year, which beat the estimate of $1,140,000,000.
- $DraftKings Inc(DKNG.US)$, which had risen sharply, suffered a selloff this week amid reports of additional NFL players testing positive for the coronavirus.
- DraftKings is a digital sports entertainment and gaming company. The firm provides users with daily fantasy sports, sports betting, and iGaming opportunities.
- The purchasing power of the market has continued the week trend of last week. When the election is around the corner, caution prevails the market.
- $Ford Motor Co(F.US)$ recently reported a 7.6% ownership stake in Velodyne Lidar. Ford owns 13,065,444 shares of the newly public company.
- Ford’s new CEO Jim Farley has made electric vehicles and autonomous vehicles a huge priority for the company going forward. Ford is a partner with Velodyne on developing a fully autonomous car for ride-share and taxis. Plans called for these cars to hit the market in 2021.
As in the previous week, 10 stocks with the highest turnover ratio were all closed lower, which revealed that it’s hard to earn money with speculation.
It’s better to trade with prudence and lower the costs.
- $Domino’s Pizza Inc(DPZ.US)$ was trading lower after a mixed earnings report, which had soared 34% year to date. The outbreak of coronavirus has hit the restaurant industry hard and brought huge changes to the industry. It’s a proper time to give more attention to survivals, especially big chains.