Save Or Spend?
Once again, the stock market got a bump from COVID-19 vaccine trials. — More on that in the “Overall Market” section.
Beyond the overall market, the stores’ reopening process got investors excited about a retailer while the future of servers and data centers wasn’t as exciting to them, at least on Tuesday. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, where did the stimulus money go? Saved or spent? — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
- U.S. markets: All three indices ended Tuesday higher than where they started it. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price is held strong below the $9,000 mark for another day.
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All We Need Is A Vaccine News
The market wrapped last week at least 3% higher. The news of another COVID-19 vaccine candidate trials propped up the market for one more day, and all three indices started this short week in the green.
Reopening The Stores
So, what happened?
Shares of TJX Companies (Ticker: TJX) were up more than 3% on Tuesday. The stock price jump is interesting because the company’s stores have been closed since the start of the COVID-19 pandemic. And, despite such disruption to the operations, the stock price is still hovering on an overvalued range measured by nearly 39 times the price to earnings ratio. Having said that, the company has started reopening its stores, and investors, including a few financial analysts, are hoping to see the glory days back to one of the most successful retailers in the public markets.
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The Future Of Data Centers & Servers
So, what happened?
Shares of Advanced Micro Devices (Ticker: AMD) were down more than 3% on Tuesday. According to the company’s latest quarterly earnings report, the company’s year-over-year performance has been impressive. The company is working with the likes of Microsoft, Alphabet, Apple, and IBM have put the company on the right growth track. Those tech giants have picked AMD over Intel (Ticker: INTC) due to its superior server CPUs that results in lower operating costs. It seems that the company is on track to gain a significant market share in the server market. However, the COVID-19 pandemic has slowed down the company’s growth compared to the previous quarter. The decline in stock price doesn’t seem to be due to any disruption in the company’s future growth potential.
Pay That Bill
So what happened here?
More than 30% of a survey done by YouGov shows that more than 30% of Americans who received a $1,200 stimulus cheque spent the money on paying bills. That’s sad news because it shows a significant portion of the population is struggling to make ends meet. The second item on the survey response is putting money toward an emergency fund.
What’s interesting about these numbers is that what works for the economy isn’t necessarily good for people. Those people who used the stimulus cheques to pay their bills supported the economy. The cheques kept the consumer spending engine to hum. However, those who saved the money while making a savvy decision for their personal finances didn’t help the overall economy. Stimulus cheques that get saved keep the money out of the circulation and have a counter effect on what the stimulus cheques were designed for.
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