After a notable upswing since the March 23 plunge, equities have entered a period of time again as investors weigh the positives of a reopened economy against concerns about the continued spread of the corona virus.
Over the past week, it lost some of its momentum as it plummeted Thursday when Federal Reserve Chairman Jerome Powell painted of the US economy, saying it will take longer than some expect to reach full growth potential. After falling nearly 6% after Fed, the SPX rose by more than 1% on Friday.
Stocks had recovered by more than 47% from the low of March 23, before investors were frightened by signals that COVID-19 is picking up in some areas. While investors are monitoring a possible second wave, we are keeping the following three stocks on our radar:
1. Tesla
It could be another uncertain week for Tesla investors (NASDAQ 🙂 after the electric car maker was hit by two downgrades, it reached a new midweek ever.
Analysts at Morgan Stanley and Goldman Sachs voiced concerns last week about the rapid rise in Tesla shares this year. The stock closed at $ 935.28 on Friday, after dropping about 9% from the record high of $ 1,025 reached on Wednesday.
In a letter to clients, Morgan Stanley analyst Adam Jonas lowered the stock to an underweight position of equal weight and lowered his price target from $ 680 to $ 650, saying that the recent rise in the stock price is no more than some key emerging risks, "mostly in the long term, that have the potential to materially negatively impact fundamentals (growth and profitability)."
Goldman Sachs analysts, led by Mark Delaney, said they had lowered Tesla to neutral because the stock was trading above their upwardly revised 12-month price target of $ 950. "We would like to get more positive on Tesla stock again if we would have more confidence in the medium to medium term fundamentals or if valuation became more attractive, "said Delaney.
2. Kroger
Big behemoth, Kroger (NYSE 🙂 will report its fiscal profit for the first quarter of 2020 on Thursday, June 18 at 10:00 a.m. Eastern Time during market hours report. Analysts expect earnings of $ 1.07 on revenues of $ 40.43 billion.
Kroger's shares rose 11% this year, fueled by a lockdown-driven increase in spending during the coronavirus pandemic. On Friday the stock dropped 1.35% to close at $ 32.26.
Kroger, the country's largest traditional supermarket chain, posted strong sales in March thanks to its private-label products and extensive online pick-up and delivery options. Kroger's stock closed at $ 27.34 on Friday after a 0.4% gain.
To defend its ground against the increasing competition from Amazon (NASDAQ 🙂 and Walmart (NYSE :), Kroger purchased meal kit company Home Chef and expanded its partnership with the private Instacart, a San Francisco-based, same-day grocery delivery service operating in some parts of the US
3. American Express
American Express (NYSE 🙂 stocks may experience some activity Monday when in New York City Established credit card and travel services company becomes the first non-Chinese financial company to start debit card clearing services in China. This step will allow local currency transactions to be processed in one of the world's largest markets.
The People's Bank of China has granted a network removal license to American Express' Chinese joint venture with Express (Hangzhou) Technology Services Co., the central bank said in a statement Saturday.
The US company, which received initial approval in 2018, is required to begin clearing services within six months, according to the statement. The bank card settlement network being built by the joint venture will process both online and offline payment transactions.
The company will also partner with leading Chinese mobile wallet service providers, according to a statement by American Express.
Amex shares have fallen by 18% this year. They closed $ 101.68 on Friday after gaining 3.12% on Friday.
