A conversation about the latest market-moving news, including the upcoming Fed decision on monetary policy and tech shares rising.
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Shares of bankrupt companies were down big in morning trading on Wednesday after a wild run fueled by speculation by retail investors. Car renter Hertz dropped 36%, while Whiting Petroleum and J. C. Penney plunged 31% and 26%. Chesapeake Energy, which is preparing for a bankruptcy filing, fell 30% after being halted for trading briefly. These names have seen their stock skyrocket in recent days as investors bet on a turnaround with the economic conditions improving suddenly. With Wednesday’s drop, shares of Hertz and Whiting are still up 180% and 130%, respectively, this month. However, many on Wall Street are warning against buying into those bankrupt names as equity holders are last in line for payout and typically get wiped out in bankruptcy. –Li
Shares of Starbucks ticked 4% lower on Wednesday after the world’s largest coffee chain said it lost as much as $3.2 billion in sales in latest quarter due to coronavirus pandemic. Starbucks, which withdrew its prior outlook in April, is forecasting a net loss per share of 64 cents to 79 cents and adjusted losses per share of 55 cents to 70 cents for quarter ending June 28. For the full fiscal year, the company expects same-store sales in its two largest markets — the United States and China — to decline 10% to 20%. Starbucks does expect earnings to improve in the fourth quarter. — FItzgerald
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Tech shares reasserted their leadership on Wednesday, lifting the Nasdaq Composite to an intraday high of 10,027.50. Apple rose 1.3% in morning trading to a fresh record of $349.35 a share. E-commerce giant Amazon jumped another 2%, hitting an all-time high of $2,653.71. Facebook also refreshed its record, rising 0.6% on Wednesday. –Li
Shares of Five Below rose more than 11% on Wednesday after the company reported earnings for its fiscal first quarter and gave updates about business at its reopened stores. The company missed on the top and bottom lines for the quarter, but several Wall Street analysts cited the companies sales trends in the second quarter as a reason for optimism.
