We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Markets went full-throttle risk-on Thursday, in reflection of a number of factors:
1) A V-shaped run-up from the coronavirus-led sell-off in March brought the Nasdaq and many stocks to new all-time highs, demonstrating an over-exuberance in positive sentiment
2) Fed Chair Powell yesterday outlined expectations for a much-longer slog-through economic period; instead of a couple months, Powell is looking at a couple years
3) New COVID-19 outbreaks in states that had earlier reopenings illustrated clearly that we are still not out of the first wave of coronavirus, and
4) A combination of outlooks — from slower reopenings to lower interest rates for longer — took a toll on outlooks for Energy and Financial stocks, which led the way down.
All in all, the Dow shed 6.9% today, or 1861.82 points — the worst sell-off since March 16th — while the Nasdaq slunk back down below 10K to 9492.73, -5.27%, for its first down day in the last four sessions. The S&P 500 followed suit, hiving off 5.89% or -188.04 points, while the small-cap Russell 2000 suffered the worst fate of all: -7.58%, down 111.17 points. Basically, market participants took the negative sentiment they finished off regular trading yesterday with, and then put the pedal to the floor.
In retrospect, it’s easy to see that trimming the fat was just a matter of time: from mid-May to today, Airlines had catapulted 80%, Oil Services up 70%, and Banks and Leisure/Hospitality had appreciated 50%. Now, in one day, we see stocks like Boeing (BA - Free Report) , United (UAL - Free Report) and Norwegian Cruise Lines (NCLH - Free Report) all sell off 16%.
Also, today we saw mortgage rates decline to their lowest levels ever, sub-3% for the first time in history to 2.94%. Today’s pullback in equities put pressure on bonds, which then caused mortgage rates to tumble. Hopefully this will spur some buying opportunities in the housing market, but after such a bruising day in the markets, homebuyers may be forgiven for being gun-shy in the near term.
Adobe Systems (ADBE - Free Report) posted fiscal Q2 results after Thursday’s closing bell, with a 10-cent beat on the bottom line from expectations to $2.45 per share, on revenues which slightly missed the Zacks consensus to $3.13 billion. Digital Media was up from estimates for the quarter, though guidance for next quarter was down somewhat. But shares came up 3.5% on the news, with hope that the quarters to come will continue to outpace analyst estimates. Adobe has not posted a negative earnings surprise for two years. For more on ADBE's earnings, click here.
lululemon (LULU - Free Report) also came out with earnings results, this time for fiscal Q1, and posted a rare miss on both top and bottom lines: 22 cents per share missed the Zacks consensus by 4 cents, while revenues of 652 million was far off expectations and way down year over year. Gross margins turned negative in the quarter, and no fiscal year guidance will be forthcoming. Shares have sold off 5.5% in late trading. For more on LULU's earnings, click here.
Zacks Responds to Pot Stock "Gold Rush"
With almost unimaginable profit potential, legalized marijuana is skyrocketing from $9 billion in 2017 to an expected $32 billion in 2020 to a possible $146 billion by 2025. Not since the Repeal of Prohibition has there been such a release of pent-up demand.
See Zacks’ recommended buys >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Markets Hit the Gas Lower, Dow -6.9%
Markets went full-throttle risk-on Thursday, in reflection of a number of factors:
1) A V-shaped run-up from the coronavirus-led sell-off in March brought the Nasdaq and many stocks to new all-time highs, demonstrating an over-exuberance in positive sentiment
2) Fed Chair Powell yesterday outlined expectations for a much-longer slog-through economic period; instead of a couple months, Powell is looking at a couple years
3) New COVID-19 outbreaks in states that had earlier reopenings illustrated clearly that we are still not out of the first wave of coronavirus, and
4) A combination of outlooks — from slower reopenings to lower interest rates for longer — took a toll on outlooks for Energy and Financial stocks, which led the way down.
All in all, the Dow shed 6.9% today, or 1861.82 points — the worst sell-off since March 16th — while the Nasdaq slunk back down below 10K to 9492.73, -5.27%, for its first down day in the last four sessions. The S&P 500 followed suit, hiving off 5.89% or -188.04 points, while the small-cap Russell 2000 suffered the worst fate of all: -7.58%, down 111.17 points. Basically, market participants took the negative sentiment they finished off regular trading yesterday with, and then put the pedal to the floor.
In retrospect, it’s easy to see that trimming the fat was just a matter of time: from mid-May to today, Airlines had catapulted 80%, Oil Services up 70%, and Banks and Leisure/Hospitality had appreciated 50%. Now, in one day, we see stocks like Boeing (BA - Free Report) , United (UAL - Free Report) and Norwegian Cruise Lines (NCLH - Free Report) all sell off 16%.
Also, today we saw mortgage rates decline to their lowest levels ever, sub-3% for the first time in history to 2.94%. Today’s pullback in equities put pressure on bonds, which then caused mortgage rates to tumble. Hopefully this will spur some buying opportunities in the housing market, but after such a bruising day in the markets, homebuyers may be forgiven for being gun-shy in the near term.
Adobe Systems (ADBE - Free Report) posted fiscal Q2 results after Thursday’s closing bell, with a 10-cent beat on the bottom line from expectations to $2.45 per share, on revenues which slightly missed the Zacks consensus to $3.13 billion. Digital Media was up from estimates for the quarter, though guidance for next quarter was down somewhat. But shares came up 3.5% on the news, with hope that the quarters to come will continue to outpace analyst estimates. Adobe has not posted a negative earnings surprise for two years. For more on ADBE's earnings, click here.
lululemon (LULU - Free Report) also came out with earnings results, this time for fiscal Q1, and posted a rare miss on both top and bottom lines: 22 cents per share missed the Zacks consensus by 4 cents, while revenues of 652 million was far off expectations and way down year over year. Gross margins turned negative in the quarter, and no fiscal year guidance will be forthcoming. Shares have sold off 5.5% in late trading. For more on LULU's earnings, click here.
Zacks Responds to Pot Stock "Gold Rush"
With almost unimaginable profit potential, legalized marijuana is skyrocketing from $9 billion in 2017 to an expected $32 billion in 2020 to a possible $146 billion by 2025. Not since the Repeal of Prohibition has there been such a release of pent-up demand.
See Zacks’ recommended buys >>