Stocks on Wall Street sold out on Friday, with key averages ending in the red amid renewed concerns about a rise in infections of the Delta coronavirus variant.
U.S. stocks may face more in the coming week as the second-quarter earnings season kicks into high gear, with reports expected from some of the major U.S. tech stocks, including Netflix (NASDAQ:), IBM (NYSE:), Intel (NASDAQ:), Twitter (NYSE:), and Snap (NYSE:).
This week, other high-profile companies, such as Johnson & Johnson (NYSE:), Coca-Cola (NYSE:), AT&T (NYSE:), Verizon (NYSE:), American Express (NYSE:), as well as United Airlines (NASDAQ:), American Airlines (NASDAQ:), Southwest Airlines (NYSE:), Domino's Pizza (NYSE:), and Chipotle (NYSE:).
Amid this sea of ??revenue – and the increasing number of Delta variant infections, we highlighted one stock that is likely to be in demand in the coming days and another that could suffer new losses.
Remember, however, that our timetable is for the coming week only.
Stock To Buy: DocuSign
Fear of an increase in coronavirus cases, linked the highly contagious Delta strain has come back to the fore as the US faces a renewed outbreak of infections more than 18 months after the pandemic.
According to the latest data, all 50 states are now experiencing a surge in new cases, with public health officials warning of an extraordinary rise to come.
As the prevalence of infections increases, some authorities have begun to impose newfound restrictions from the pandemic era.
That could lead to more positive action for cloud-based software-as-a-service company DocuSign (NASDAQ:), widely regarded as the leader in the electronic signature market.
DOCU shares — which rose to a new all-time high of $298.35 on July 12 — ended Friday at $282.05, giving the San Francisco, California-based company a valuation of about $55 billion.
DocuSign has seen a surge in demand for its e-signature platform over the past year, with the COVID-19 pandemic and the shift to the home-working environment.
Year-to-date, stocks are up 26.7%, easily surpassing the 15.2% increase in the same period.
With fears of a new potential wave of the coronavirus – and subsequent lockdowns to slow its rapid spread – it makes sense that investors will turn to the leading provider of electronic signature technology due to the growing demand for remote working tools .
Stock To Dump: Carnival Corporation
Shares of Carnival Corporation (NYSE:) – the world's largest cruise line – are expected to have another miserable week amid growing fears about the spread of the highly transmissible COVID Delta strain in the US
The current seven-day moving average of daily new cases rose nearly 70% from the previous week to about 26,000, the most since mid-May, according to the latest figures from the Centers for Disease Control and Prevention.
Hospitalizations and deaths are also on the rise again, rising about 36% and 26% respectively, reversing a month-long decline that started in mid-January.
The worrying rise in infections and deaths could prompt cities and states across the country to reintroduce mask guidelines and other social distancing measures, potentially disrupting the peak summer vacation season.
In a worrying development for Carnival, Florida has emerged as a national hot spot, accounting for 1 in 5 cases in the past week.
The cruise operator recently announced that it will require passengers and vacationers in Florida to purchase special COVID-19 travel insurance if they want to board its ships.
Bearing that in mind, Carnival – which has seen its stock steadily plunge to new lows and may be in the position to need it – could experience further headwinds in the coming days as investors react to more negative COVID-related headlines.
CCL shares closed Friday's session at a five-month low of $20.92, about 33% below the recent post-pandemic high of $31.52 reached on June 8.
At current levels, the Doral, Florida-based cruise giant has a market cap of $24 billion.
