KEY POINTS
OVERALL MARKET
Optimism surrounding COVID, gains from earnings reports, and rebounding Chinese stocks helped the market stay green.
The market indices checked off another session in the green, but only barely.
The market is still seeing optimism related to the FDA approval of Pfizer (PFE) and BioNTech’s (BNTX) vaccine that we discussed yesterday. It also seems that the speed of growth in the new COVID-19 cases is slowing down based on a CNBC discussion with a health policy research analyst, Chris Meekins. He noted that the rate of increase in cases has slowed to 11.7%, well below its total of 32% two weeks ago. It also didn't hurt the market to see a slight rebound in Chinese stocks and good earnings from a few companies. In the end, both the S&P 500 and the NASDAQ hit record highs by the close. WE NEED YOU!
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Chinese stocks begin to rebound as crackdowns slow, and Tencent (TCEHY) and JD.com (JD) post great earnings.
Folks, as I was browsing today’s winners’ list on Stock Card, I noticed that half of the top ten companies were Chinese stocks! We have been following the government's crackdown on major tech and education companies through investigations and new regulations.
It seems that this is the second day of some major rebounds in Chinese stocks, particularly the ones listed in the U.S. Investors seem to have a hunch that we’re nearing the bottom of this dip and are jumping on the opportunity to ride the stocks back up to previous levels. It appears the companies themselves are beginning to set themselves up for a bull run. For example, Chinese internet giant Tencent (TCEHY), which got slapped with some government regulations, began some share buybacks this week and hit the market's estimates with its earnings report last week. Also, some investors, such as Cathie Wood, had her fund pick up shares of the Chinese eCommerce platform JD.com (JD) after its impressive earnings report yesterday. Both of these companies impressed investors despite the regulatory challenges. If you want to get a list of Chinese companies listed on the U.S. stock exchange, type in China in the search bar and go to the China collection on Stock Card! Indeed, there are excellent companies on the list if you can tolerate the volatility of the ongoing regulatory changes. WHAT'S DOWN?
Walmart’s (WMT) new business delivery service is the next step in leveling up its retail platform.
Keeping in line with our retail theme from yesterday, I have been reading up on some new developments with Walmart (WMT) that can shape the company's future for decades to come.
The giant retailer unveiled a new service today called Walmart GoLocal. The company has been working on its shipping and delivery capabilities for a while. Previously this was primarily applicable to its online marketplace. Now, Walmart wants to provide its services to local businesses and merchants. It already has gig drivers employed to deliver groceries and other products, so it can use the same infrastructure to aid local sellers in delivering to their customers. Looking at Walmart’s Stock Card and looking at its Price-to-Sales ratio, it seems investors don't have much hope for Walmart to grow its sales. At 0.75 times price to sales ratio, the market values Walmart as a company that hit its revenue growth potential. This is a little odd because innovations such as opening up its infrastructure to delivery by other businesses mean new platform revenue for Walmart. We've already seen Walmart succeeding at expanding its online marketplace to include other sellers and is morphing the company into a next-level retail platform, not just a simple retailer. This is a strategy right out of Amazon's (AMZN) growth playbook. If you think retail is dead, it might be time to reconsider. Many retailers are changing and evolving to grow. Take Best Buy (BBY), for example. Its shares jumped over 8% today from its great earnings report. According to the CEO, the company is “fundamentally in a stronger position than [they] expected just two years ago.” You can get a solid list of these forward-thinking retailers by taking a look at the Future of Shopping collection on our site, and consider stopping by Walmart's Stock Card too. WE NEED YOU!
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