|
 European stocks slipped on Tuesday, reversing the previous day's gains on worries about the state of California shutting down.
|
|
Investors lodged in ‘zone of uncertainty' as country's coronavirus outbreak worsens
|
|
Dow Jones Futures: What To Do After Coronavirus Stock Market Rally, Tesla Reverse Lower; JPMorgan Earnings Due Investor's Business DailyS&P 500 and Nasdaq end lower after sharp drop in tech titans Reuters UKStocks surrender gains after California rolls back coronavirus reopenings Fox BusinessDow surges then fizzles after stocks briefly turn positive for 2020 CNNS&P 500 and Nasdaq end lower after sharp drop in tech titans Kitco NEWS
|
|
 Investor focus has landed squarely on the surge in new COVID-19 cases and its threat to economic reopenings, but there's another possibility being ignored. According to Morgan Stanley equity strategist Mike Wilson, even though the market is expecting economic activity to decline, earnings could get a major boost."Cautious investors may be overlooking the potential for operating leverage to fuel an earnings rebound... Aggressive cost-cutting in a downturn is what creates the powerful operating leverage when the economy recovers," Wilson commented.While unemployment has skyrocketed during the coronavirus crisis, Wilson argues operating leverage was already dropping before the pandemic's onset. "It's also a classic feature of late-cycle economic expansions. My point is that many companies were already exhibiting negative operating leverage pre-COVID-19. This gives me confidence that Q2 will likely be the trough for earnings growth," he explained.Bearing this in mind, some investors are on the hunt, looking to snap up compelling names before shares re-embark on an upward trajectory. For the more risk-tolerant, focus has locked in on penny stocks, or tickers trading for less than $5 per share. The appeal is clear; the bargain price tag means you can get more bang for your buck and even what feels like inconsequential share price appreciation can result in huge percentage gains.What's the flip side? Minor share price depreciation can fuel major percentage losses. By nature of these massive movements, penny stocks are no
|
RELATED ARTICLES | | | | |
|
See which stocks are posting big moves after the bell.
|
|
 Stocks extended gains Monday morning after two pharmaceutical companies received "fast track" designation for the development of their vaccine candidates against Covid-19, stoking hopes of near-term inoculation amid the pandemic.
|
|
Asia markets fall amid coronavirus fears, China-U.S. friction MarketWatchDow surges then fizzles after stocks briefly turn positive for 2020 CNNHere's what happened to the stock market on Monday CNBCDocuSign Joins the Nasdaq-100. Does That Make It a Buy? The Motley Fool
|
|
California's decision to reverse its reopening plans is an ominous sign for the beleaguered cruise industry.
|
|
Stocks closed mostly lower Monday, with the Dow booking a modest gain, after technology stocks fell and rising coronavirus cases led California's governor to order businesses across the state to shutter once again.
|
|
 Shares of Carnival Corp. dropped 1.8% in midday trading Monday, to buck the surge in the broader stock market, amid concerns over how the recent surge in COVID-19 cases will affect the timeline for restarting cruises in the U.S. Analyst James Hardiman at Wedbush cut his price target to $20 from $29 while reiterating his neutral rating, in the wake of the cruise operator's announcements last week that three of its AIDA Cruises will start resailing in August, and that cumulative advance bookings for 2021 remained within historical ranges, although at lower prices. "While a legitimate target for the restart of the AIDA brand is encouraging, we can't help but think that we remain a far distance away from operations resuming in the United States given a resurgence in COVID-19 cases as well as halted (in some instances reversed) economic reopenings," Hardiman wrote in a note to clients. Other cruise stocks were also falling Monday, with Royal Caribbean Cruises Ltd.'s down 0.9% and Norwegian Cruise Line Holdings Ltd.'s losing 1.7%. Over the past three months, Carnival's stock has rallied 38.1%, Royal shares have shot up 54.2% and Norwegian shares have soared 42.3%, while the S&P 500 has gained 16.8%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Tesla surges to become 10th most valuable publicly traded US company
|
|
Shares of Mohawk Industries Inc. fell more than 8% in the extended session Monday after the maker of carpets and other floor covering products said it is being sued for federal securities law violations and it is under a SEC investigation for those alleged violations. Debt ratings Moody's Investors Service added to the company's woes by calling the allegations, which include claims that the company fabricated sales figures, "credit negative and suggest aggressive business practices and potential corporate governance weaknesses." For the time being, however, Moody's kept its investment-grade Baa1 ratings on Mohawk's debt "because the company has good liquidity bolstered by recent debt offerings and the allegations will take time to litigate," Moody's said. Mohawk intends to "vigorously defend itself" in the lawsuit, it said in a filing Monday. A complaint was filed on June 29 against the company and Chief Executive Jeff Lorberbaum, Mohawk said. It alleges that the company fabricated revenue by attempting delivery to customers that were closed and recognizing these attempts as sales, that it overproduced goods to report higher operating margins and maintained "significant" inventory that it knew it couldn't sell, and valued some inventory improperly or improperly delivered inventory knowing that it was defective and customers would return it, the company said in the filing. Mohawk said that on June 25 it received subpoenas from the U.S. Attorney's Office for the Northern District of Georgia and the SEC "on topics similar to those raised" by the complaint. The company is cooperating with those authorities, it said in the filing. Shares of Mohawk ended the regular trading day up 8.7%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Stocks closed mostly lower Monday, with the Dow booking a modest gain, after technology stocks fell and rising coronavirus cases led California's governor to order businesses across the state to shutter once again.
|
RELATED ARTICLES | | |
|
 U.S. stocks extended recent gains Monday, after investors weighed signs of progress for a coronavirus vaccine as new cases continue to surge.
|
|
Private Label