ESG Investing
By Wed, Jan 20, 2021
Hey Scoopers,
The new Treasury Secretary nominee talked about more support and stimulus with the Senate, and investors took it as the sign that better days are coming to the stock market. — More on that in the “Overall Market” section.
Beyond the overall market, one acquisition news sent one stock up by more than 20%, and another acquisition news dragged the acquirer’s stock by more than 10%. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, have you thought about ESG investing? — 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 had a good start to the week. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price is hovering above $36,000 for now.
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More Support for the Economy
The market started the week on high notes, and all three indices ended Tuesday in the green. The Treasury Secretary nominee was in the Senate, and she talked about the need for the new government to “act big” and combat the coronavirus pandemic impact on struggling Americans. Investors most likely interpreted that as more support, more liquidity, and economic growth and celebrated the day by buying up shares.
Good Acquisition News
So, what happened?
Shares of Tencent Music Group (Ticker: TME) were up more than 20% on Tuesday. The stock price jump is counterintuitive because, on January 15th, it announced a new acquisition. And, typically shares of acquirers fall after such news because investors don’t like seeing the companies they own to spend their money on buying other companies, at least in the short term. In this case, it seems the acquisition satisfied Needham analysts who increased their price target for Tencent Music Entertainment Group. That was enough for investors to celebrate the acquisition as good news.
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Bad Acquisitions
So what happened?
Shares of Lumentum Holdings Inc (Ticker: LITE) were down by more than 11%. Lumentum manufactures optical and photonic products to use in 3D Sensing and lasers. The price drop is due to the news that the company is acquiring Coherent (Ticker: COHR). It’s a typical and expected reaction when investors hear about the acquisition and may create a window of opportunity to buy a few shares.
ESG Investing
So what happened?
ESG investing is being recognized as one of the important trends shaping the investment seen in 2021. Back in September 2020, we all saw BlackRock’s CEO’s letter to large corporations’ CEO. In his letter, the CEO of one of the world’s largest investment funds told corporate CEOs that his fund would not invest in companies that do not take ESG seriously. Backed up by such trends, the editorial team at the Daily Scoop and Stock Card analysts researched and published a new list of ESG stocks that you can use for free.
How about creating a watchlist of environmentally and socially responsible stocks that also have no cash concerns. That makes a lot of sense, and stocks on that list can be new additions to your watchlist. Do you have any ESG investing in your portfolio?
(Source: StockCard.io)
If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.
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
