What you need to know?
Hello Scoopers! We all knew a red day is coming. The stock market can’t keep going up every day. Thus, a red day surely arrived on Tuesday. The market wasn’t alone in having a bad day. One whistleblower shook the house of Mickey, the mouse. Americans, on the other hand, didn’t waste any day in taking care of their houses and sent the stock price of the world’s biggest do-it-yourself retailer up to the moon. Well, maybe not as high as the moon but, at least, high enough to touch the ceiling.
We’ve got all those stories and more in today’s edition of The Daily Scoop. Scroll down to the “Overall Market,” “What’s up?” and “What’s down?” sections to read those stories and more.
- U.S. markets: After a few days of upward movements, all three stock market indices finished Tuesday in the red zone. Scroll to the Overall Market section to learn more.
- Cryptocurrency: It’s unlikely of the cryptocurrency market to stay calm. Yet, things are uncommonly quiet. Bitcoin’s price continued hovering around $10,000 per coin.
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Two things that put a brake on the market rally
What happened on Tuesday?
The stock market took its foot off the pedal and finished Tuesday in the red zone. All three major indices agreed on the direction and finished the day lower than where they started. The Financial Services sector took the biggest hit and ended up almost 1.5% lower for the day.
What drove down the market?
One thing we all know is that the stock market can’t keep going up. Gyration is the nature of the market. That’s no reason for worry. Beyond its natural rhythm, two other macro and political forces didn’t help the market either:
- Political unrest in Italy caused a dispute between the leaders and ended up with the resignation of the country’s Premier. The disagreements were many, but an anti-immigration dispute was at the center. Read more here.
- President Trump discussed the possibility of cutting payroll taxes as a way to battle a possible recession. Talking about a measure to overcome recession didn’t work well for investors’ sentiment. Read more here.
This company had a great Tuesday.
So, what happened?
If there is ever one example that Amazon (Ticker: AMZN) can’t keep killing retailers is the success of Home Depot (Ticker: HD) in the age of Amazon. The company just released its quarterly earnings, and things were all rosy. Even a warning about the trade war and tariffs didn’t spoil the company’s better-than-expected profitability. Shares were up more than 4% on Tuesday.
This company had a bad Tuesday.
Cybersecurity stocks didn’t have a good Monday, and the lousy streak continued into Tuesday. This time, shares of Proofpoint (Ticker: PFPT) lost more than 5%. The company announced a new round of financing through convertible notes. While raising money is a good thing for the future, investors don’t like it in the short-term. Convertible notes are transferable to common stocks, and that means, there will be a higher number of the company’s shares circulating in the market. This is commonly known as dilutive to the current investors who have to share the company’s earnings across a larger number of stocks. As a whole, cybersecurity stocks do not have the best of the time these days.
Oh no, Mickey. What did you do?
So, what happened?
A former accountant at The Walt Disney announced that she has knowledge of a long-lasting tradition of overstating revenues at Disney, and has shared such information with the SEC. This former accountant has been whistleblowing about Disney’s accounting practices at least since 2013, and she now shed some light on what she knows about the company in a conversation with MarketWatch.
Just like GE’s case, this is an allegation that SEC is investigating. But the news was enough for investors to send Disney’s stock down by about 0.5%.
Did you know whistleblowing can be a lucrative source of income? The SEC rewards whistleblowers handsomely if their allegations prove to be true. The range of the reward is between 10% to 30% of the money SEC collects from the company or the entity at fault. Not too bad!