Customary Volatility
By Thu, May 21, 2020
Hey Scoopers,
The stock market continued its customary volatility. — More on that in the “Overall Market” section.
Beyond the overall market, one travel stock was up despite the revenue decline, while a pharma stock has been falling since its FDA approval for emergency use in extreme COVID-19 cases. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, a new bill by the Senate is expected to protect investors from fraud cases such as Luckin. — 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 finished Wednesday in the green. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price suffered a quick sell-off but not for too long.
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Volatility Customer
In its customary volatile mode, the stock market recovered from the red zone of Tuesday and ended Wednesday quite higher than where it started the day. Economists and experts are expecting another jump in the number of unemployment claims on Thursday, but the stock market continues with its customary volatility as it has been doing so in the last few weeks.
Costs Were Cut Already
So, what happened?
Shares of Expedia (Ticker: EXPE) were up more than 8% on Wednesday. The company announced its quarterly earnings report. The stock price jump is counterintuitive because of the COVID-19-induced global travel halt. However, the company was already in cost-reduction mode and was able to raise nearly $4 billion capital to fund its operations until the global travel resume. Among cost-cutting initiatives, the transition to agent-free, self-serve hotel bookings management, and cancellation is an example of the changes that will serve Expedia well in the years ahead.
Bill O’Reilly’s Stunning Money Revelation
At the height of his hit TV show, Bill O’Reilly was reportedly making a staggering $37 million a year.
But today, something incredible has happened to his wealth.
For the first time publicly, Bill comes clean about it in this video.
This ought to get interesting…
Down Despite Its COVID-19 Drug
So, what happened?
Shares of Gilead (Ticker: GILD) are down more than 13% in the last 30 days. It’s surprising to see that the stock hasn’t hit an all-time high, considering the early excitement around the growth potential of a possible COVID-19 treatment. The company has already received FDA approval for the emergency use of Remdesivir drug for extreme cases of COVID-19.
Fighting Another Luckin
So what happened here?
The crazy case of fraud by Luckin Coffee (Ticker: LK) has got the U.S. regulators thinking about tighter audit requirements for foreign companies listed on the U.S. stock exchanges. The Senate is expected to pass a bill to enforce just that.
Better audit and regulator oversight in reporting operational metrics and avoiding foreign government interventions in publicly-traded companies is the right thing to do for a fair market to operate. Whether there are political motivations behind the bill should not prevent us from seeing the net-positive impact of this new bill.
Additionally, the bill will take a long time to get implemented. So, as investors, you will have ample time to evaluate your holdings.
Share your thoughts and ideas by emailing us at members@tradestocks.com.
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
