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The Dow Jones today may finish with a loss as COVID-19 cases across the United States rise.
Stocks that would benefit from a stronger reopening for the economy are sliding today as well. These stocks fall into the airline, cruise, retail, and hospitality categories. Read for more on these developments…
Before we get into this story and more, here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
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Now, here's a closer look at today's most important market events and stocks. We'll also discuss the stories that slipped under the radar of the mainstream financial press on Wednesday.
The Top Stock Market Stories for Wednesday
- Today, investors are looking for cracks in the U.S. economy. Right now, millions of Americans are facing an "income cliff" that could see their extra $600 per week in unemployment benefits end without an extension from Congress. This money has been critical in the face of record job losses and a potential economic recession. The CBO recently reported that the extension of a $600 per week payment may reduce total employment during the second half of 2020 and total employment for 2021.
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- Johns Hopkins University reports that the number of coronavirus cases over a seven-day average surged more than 30% from a week ago. Cases have surged in Texas, Arizona, Florida, and California, raising concerns about the reopening of economies and the inability to contain the spread. The number of U.S. cases has surpassed 2.34 million, with the number of deaths now sitting above 121,000. The biggest headline today is that the European Union is moving to bar American travelers due to concerns about the spread.
- Meanwhile, all eyes are on Apple Inc. (NASDAQ: AAPL). The tech giant is sitting at an all-time high after it announced a new operating system for its computers and iPhones. The firm also dropped a bombshell on the tech sector after announcing that it will no longer use Intel Corp. (NASDAQ: INTU) chips in its devices. The firm will instead rely on its own microchips for new Mac devices. Finally, Apple announced that iPhone sales declined in China last month. A 7.7% month-over-month decline in May followed a 160% surge in April.
Stocks to Watch Today: CCL, JCPNQ, SPG, WGO, BPP
- Shares of Carnival Corp. (NYSE: CCL) slumped 5% this morning after S&P Global slashed the cruise company's credit rating to junk status. The ongoing COVID-19 pandemic appears to be a serious problem for the cruise industry as the renewed spread could impact its ability to attract new customers in 2021 and beyond.
- Embattled and bankrupt J.C. Penney Co. (OTCMKTS: JCPNQ) is in focus on takeover news. According to reports, Simon Property Group Inc. (NYSE: SPG) and Brookfield Property Partners LP (NASDAQ: BPY) are exploring a potential bid for the fallen retail giant. It's worth noting that J.C. Penney is Simon Property Group's second-biggest mall tenant.
- In earning news, shares of Winnebago Industries Inc. (NYSE: WGO) fell 2.5% after the company reported a -$0.26 profit decline in its most recent quarter. That figure was better than the -$0.45 loss in EPS that Wall Street had anticipated. Revenue levels did still top expectations despite the latest round of shutdowns tied to COVID-19. Shares of WGO are up about 250% since closing trading on March 18 at roughly $20.50 per share.
- Look for reports from Blackberry Ltd. (NASDAQ: BB), Arconic Corp. (NASDAQ: ARNC), KB Home (NYSE: KBH), Abraxas Petroleum Corp. (NASDAQ: AXAS), Korn Ferry International (NYSE: KFY), Global Eagle Entertainment Inc. (NASDAQ: ENT) and HB Fuller Co. (NYSE: FUL).
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About the Author
Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.