🍨 Daily Scoop: A Corporate Crisis Continues
By Tue, Oct 22, 2019
Hey Scoopers,
It was a good day in the stock market, with all three indices finishing in the green zone. With the earnings seasons moving at full speed, this is going to be an exciting week for investors.
Beyond the overall market, an old leader in the online shipping industry got resurrected on the news of a new partnership. And, the report of misleading the Federal Aviation Administration sent one stock to new lows. It is a safe bet to assume you know exactly which stock we are talking about?
Oh, by the way, America lost its spot as the country with the highest number of rich people in the world. And, it hurt a little.
As always, learn more in the “Overall Market,” “What’s Up?” and “What’s Down?” sections.
MARKETS
- U.S. markets:All three indices finished Monday slightly higher than where they started the day. Scroll to the “Overall Market” section to learn more.
- Cryptocurrency: During the weekend, Bitcoin’s price moved from a valley of $7,875 to a peak of over $8,300. Since then the coin is hovering in the $8,000 range.
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OVERLL MARKET
One of the busiest weeks of the year
What happened on Monday?
All three indices wrapped Monday higher than where they started the day. It was a good day for the Nasdaq, in particular. The index jumped approximately 1% getting a boost from the technology stocks’ satisfactory quarterly earnings reports, so far.
What does this mean?
This week, hundreds of companies are expected to announce their quarterly earnings. The market’s fluctuation will be dependent on these quarterly earnings reports. It’s going to be a busy week for stock market investors. Get ready for some good old stock market ride.
WHAT’S UP
The resurrection of an industry leader
So, what happened?
Shares of Stamps.com (Ticker: STMP) were up more than 20% on Monday. The company is an online shipping software provider that simplifies the online shipping process for retailers. It used to have an exclusive partnership with the USPS. However, earlier in the year, the leadership abruptly pulled the company out of the agreement, and the stock lost more than 80% of its value in a matter of a few weeks.
Since then, the company has been focusing on becoming a global, multi-carrier shipping solution provider. The strategy to move away from an exclusive partnership with the USPS has helped the company to get better alignment with how the shipping industry has been involving. Which brings us to Monday’s news. Stamps.com signed an agreement with UPS (Ticker: UPS) to provider online resellers with discounted UPS rates. While many investors had lost hope in Stamps.com earlier in the year, the company is on the right track to reclaiming its position as a leader in the shipping industry.
what’s down
A corporate crisis continues
It was only a week ago that we shared with you how surprised we are about Boeing’s (Ticker: BA) stock price, despite the fact that 737 Max jets are still grounded. However, late last week, a report came out, and the Federal Aviation Administration (FAA) announced possible misconduct by Boeing’s employees. Apparently, employees hide some key information about 737 Max safety tests in prior years. The report has renewed investors’ concerns about Boeing’s corporate crisis once again, and the stock has been steadily declining since then.
Typically, corporate crises of this magnitude last for a long time, with a much larger impact on the company for an extended period of time. Boeing’s crisis is not an exemption, either.
WATER COOLER
Com’on billionaires, America is counting on you
So, what happened?
For the first time in history, the U.S. has lost its spot as the leader with the highest number of rich people. We are, of course, joking. The count of rich people and billionaires is not an official indicator of success. However, it hurts a little bit to know we are not the number one in that category anymore.
Who snatched the top spot from under our feet?
China, of course.
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
