🍨 Daily Scoop: Record-High, Instead of A Correction
By Tue, Oct 29, 2019
Hey Scoopers,
Despite everyone’s expectation of an economic recession and a market correction, the S&P 500 hit a record-high on Monday.
Beyond the overall market, one company has found a way to beat Apple and Amazon at the same time. And, the Delivery War is taking its toll on at least one company.
Oh, by the way, while you and I were chilling over the weekend and watching the World Series on TV, Bitcoin price jumped almost $3,000. And, one aircraft manufacturer proved that it can still build flying things, not just the human-carrying kinds. This story is in the “Water Cooler” section. For the rest, scroll down to the “Overall Market,” “What’s Up?” and “What’s Down?” sections.
MARKETS
- U.S. markets: All three indices had a good start to the week and finished Monday in the green. Scroll to the “Overall Market” section to learn more.
- Cryptocurrency: Bitcoin’s price had a wild weekend, and is now sitting above the $9,000 mark. The last time we spoke, Bitcoin was hovering in the mid-$7,000 range, and it surged to more than $10,400 per coin during the weekend, before settling at around $9,000. Most analysts attribute the price surge to the endorsement of the blockchain technology by the Chinese presidents. Cryptocurrency markets are widely unpredictable. What moves them are rarely the usual events of the market. This weekend’s upward jump is a good example of that.
SPONSOR
This Secret $.50 cent AI Stock Could Surge Short-Term 2,500%
$1 stocks: worth it? Big moves from little players. 3 tiny stocks set to soar by October 1st, 2019.
OVERALL MARKET
Hello, a new record-high
What happened on Monday?
While all three indices finished the day in the green and the Nasdaq added another 1%, it was the S&P 500 that had a particularly great Monday. The world’s most widely used index hit a record-high level.
What does this even mean?
Despite everyone’s worry about the possibility of a stock market correction and an economic recession, somehow, the index managed to hit a new record-high level.
We know we’ve told this to you too many times. But let’s talk about it again. You can have a situation when all analysts in the world predict a recession. However, a few good quarterly earnings and positive market sentiment end up pushing the market up
Just like no one was expecting an all-time high level now, the market can easily fall into a valley of sorrow, depending on what the news and the earnings have in store for investors. If you sold all your stocks waiting for a crash to happen, you just missed an all-time high record. Similarly, if you go all in now, the chances are you will suffer a decline. Slow, steady and based on logic is the best way of investing in the stock market.
WHAT’S UP
Crushing Apple and Amazon, at the same time.
So, what happened?
Not too many companies can officially claim that they can crush Apple (Ticker: AAPL) and Amazon (Ticker: AMZN), at the same time. However, one company did just that. Shares of Spotify (Ticker: SPOT) were up more than 15%. The company grew the number of active users, premium subscribers, and revenue rapidly, and the management claimed a victory over Apple and Amazon music.
The company believes that it is adding twice as many subscribers per month as Apple music does. Moreover, it estimates that Amazon music users are skewed to free, ad-based, and less engaged population compared to Spotify’s user base.
Spotify has been trying to get out of the shadow of these two industry giants for a while. However, the latest explicit comparison with Apple and Amazon left limited doubts in investors’ minds that the company is poised to grow.
WHAT;S DOWN
The delivery war is taking its toll.
Shares of GrubHub (Ticker: GRUB) were down more than 23% on Monday. The revenue and users (a.k.a diners) were up, but not high enough. More discouragingly, the company didn’t paint a good picture of its future.
In a 16-page shareholder letter, the company discussed how new diners are not as engaged as their earlier cohorts. And, the company is feeling the competitors’ heat.
The Delivery War is taking its toll.
Water Cooler
Boeing still can make flying things.
So, what happened?
NASA just announced the landing of its mysterious X-37B Orbital Test Vehicle. The space shuttle broke the record with 780 days in the orbit. The landing of this shuttle created a few controversies, notably because the secret mission included carrying and deploying a small satellite, which has not been reported to the UN.
Regardless of those controversies, guess who built the shuttle? If you guessed Boeing (Ticker: BA), you are correct. While Boeing is struggling to resume flying its 737 Max fleet, it sure can build flying things, but just not the human-carrying kinds.
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
