A Jolt Of Reality
By Thu, Apr 16, 2020
Hey Scoopers,
Grim earnings reports and economic data nudged investors with a jolt of reality. –Â more on that in the “Overall Market” section.
Beyond the overall market, video game stocks are winning, while oil stocks are crashing. –Â more on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, we just learned none of the Scoopers that have responded to our survey had gone all-in cash, despite the turbulent market. What a savvy bunch you are. For one last time, we are asking the rest of the Scoopers to help us by responding to two quick questions. â more on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: All three indices finished Wednesday in the red. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price continued to hover in the high $6,000 mark.
How to turn 60% losses into 60% wins
With the coronavirus running amok and spreading fear, the markets are spiraling out of control.
You need something that is safe and predictable — a system that is known for keeping your money safe week in and week out.
A Jolt Of Reality
Wednesday turned out to be a red day in the stock market. The small business loan is tapping out. Grim economic outlook data released on Wednesday nudged investors with a jolt of reality and sent the stocks falling. The Energy sector (with more than 5% decline), and the Basic Materials sector (with more than 4% decline) were the main reasons the stock market fell on Wednesday. Also, the Financial Services sector fell nearly 5% after multiple back-to-back earnings miss by the major U.S. banks. Scoopers, get ready for a rocky earnings season to field up the volatility in the next few weeks.
Online Gaming Wins.
So, what happened?
Shares of Zynga (Ticker:Â ZNGA) were up more than 3% on Wednesday. The stock’s price is up nearly 14% in the last month. Online and social video game makers are among the winners of the COVID-19-induced virtual lives we are living. Beyond that, there wasn’t any particular piece of news about the company to justify the jump. Most likely, investors and funds are adjusting their holdings in preparation for the May 1st quarterly earnings report.
Financial pandemic 2020
The Crash of 2020 is here, and itâs happening more quickly than virtually any crash in history.
Consider this: The coronavirus outbreak started in December of 2019. By March 2020, more than 110,000 people in 60 countries were infected.
Lots Of Debt + Not Enough Revenue = Disaster
So, what happened?
Shares of Chesapeake Energy (Ticker:Â CHK) were down more than 37% on Wednesday. The company just went through a reverse split by merging every 200 shares into one in order to stay listed on the New York Stock Exchange. However, the road to recovery for this stock is extremely tortuous. With the oil price crash and a mountain of debt (more than four times in financial liabilities compared to EBITDA), and negative free cash flow, it would be extremely difficult for this US-based oil exploration and production company to recover any time soon.
One Last Call.
So what happened here?
Scoopers, for the last two days, we have asked you to give us 30 seconds of your time and help us customize The Daily Scoop’s content.
Up until the time of writing this Scoop, nearly 50 Scoopers have shared the status of their portfolios with us. As we told you yesterday, it looks like Scoopers are quite a savvy bunch. For example, no one has gone all-in cash so far.
This is the last call to ask you to spare 30 seconds and respond to two questions. Your responses will help us create customized Daily Scoops.
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About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
