Hello Scoopers,
Last week we decided to interrupt the Monday IPO Review series to share the first set of companies on our Coronavirus Watchlist. We discussed four stocks that are either directly or indirectly impacted by the Covid-19 outbreak around the world. Those stocks were American Airlines (Ticker: AAL), Moderna (Ticker: MRNA), Teladoc(Ticker: TDOC) and BlackRock (Ticker: BLK). Go back and read last week’s edition if you haven’t already. Those four companies are worth considering because of the strength of their operations before coronavirus chaos.
This week we continue with the list of stocks on the move due to coronavirus but with a snarky twist. Today’s stocks are companies we would have never considered picking up their shares before the Covid-19 epidemic, and we do not really believe the recent excitement around them is justified. It is as if Coronavirus has turned some seemingly ordinary companies into the new gold — more on that in the “Coronavirus Watchlist” section.
Before we go on, we can’t let you start Monday without hearing about “circuit breakers.” They came into effect during Futures trading on Sunday to protect a market meltdown. We will have full-on coverage on what happened next week. For now, you must know what happened on Sunday is a gift to investors by modern stock exchanges. Inherently, they come to us with a feature that halts trading if there is a major meltdown caused by pessimism and rapid trading. #phenomenon
But first, here is a recap of what happened in the market on Friday:
Market Recap
- U.S. markets: The Nasdaq stopped its descent on Friday while the other two indices continued to fall, but only slightly. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price finished the week under the $9,000 mark.
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The Silver Lining
What happened last week?
Despite the doom and gloom vibe, the market was actually up for the week. The Dow gained almost 2% last week. The S&P 500 and the Nasdaq ended the week in the green zone too.
Look, we are not saying things are rosy in the stock market. There is no denying that the market is in the correction mode, and for good reasons. However, the world is not coming to an end, and the market is just reflecting the reality of the recent production disruption across the world. The GDP growth will slow down because fewer people have been traveling, spending money buying things, and quite a few factories have stopped the production for at least a few days, and more people around the world may get impacted by Covid-19. On the positive side, once all said and done, we will not hear about an overvalued market and an impending crash at least for a while. That must be the silver lining here.
Whatever happens on Monday, remember that the stock market has always recovered and this time will most likely not be an exemption. For example, circuit breakers just saved the Futures market on Sunday.
