After a notable upswing since the March 23 plunge, the stock market entered the third quarter with strong momentum on optimism that the worst pandemic-induced recession has passed.
Investors bought stocks across the board after the United States Department of Labor revealed on Thursday that they were added to the economy in June, which is much better than what economists expected.
The closed 92 points, or 0.36%, higher at 25,827.36. The increase increased by 0.45% to 3,130.01 and increased by 0.52% to 10,207.63.
Stocks had recovered by more than 36% from the low of March 23, before investors were frightened by signals that the outbreaks of COVID-19 are escalating in some areas. As trade will focus on the state of the US economic strength next week, we will keep the following three stocks on our radar:
1. Tesla
Tesla (NASDAQ 🙂 is sharp again. It was one of the most successful transactions this year, after the electric vehicle maker said second-quarter deliveries exceeded expectations.
On Thursday, the Palo Alto, California-based company reported that it delivered 90,650 cars to customers in its three-month period ending June, exceeding the average analyst estimate for approximately 83,000 in a Bloomberg News survey. Tesla delivered approximately 88,400 vehicles in the first quarter.
Tesla shares were up about 8% in the news, jumping to $ 1,208,66, near the $ 1,250 target set by Wedbush Securities on Thursday. The stock is about to triple this year.
That performance is even more commendable when, in the same period, both Ford (NYSE 🙂 and General Motors (NYSE 🙂 saw their American deliveries drop by a third.
2. Walgreens
Walgreens Boots Alliance (NASDAQ :), the second-largest pharmacy operator in the United States, will record third quarter 2020 earnings report Thursday, July 9 before the market opens. Analysts expect earnings per share of $ 1.20 per quarter on revenues of $ 34.3 billion.
The Deerfield, Illinois-based company took advantage of COVID-19-related locking measures as US consumers race to stock up on medicines, cleaning supplies, and toilet paper. But business leaders said they doubted that this trend will continue to benefit the drug chain as the economy reopens.
Prior to the pandemic, Walgreens struggled to boost sales and had made cost savings as market share was squeezed by increasing competition from Amazon (NASDAQ 🙂 and other segment players.
Part of these efforts includes strengthening its digital strategy and free delivery of orders through its website, as well as expanding its collaboration with Postmates delivery service.
Walgreens stocks outperformed the broader market this year, dropping by 29%. The stock closed at $ 41.98 on Thursday, after rising nearly 3% for the day.
3. Bed Bath & Beyond
Bed Bath & Beyond (NASDAQ :), a giant home furnishing and household goods giant, reports its first quarter fiscal profit on Wednesday July 8 after closing of the market. Analysts expect the retailer to lose $ 1.25 per share on revenues of $ 1.39 billion.
The retailer is in the midst of a failure to renew its business model to survive the attack of e-commerce giants. Earlier this year, Bed Bath & Beyond replaced several directors, including the chain's co-founders, under pressure from activist investors.
It also announced a series of layoffs in selected stores across the country. In addition, it has conducted a strategic evaluation of its portfolio of approximately 1,500 stores.
The company's revenues will also provide some insight into customer patterns, as some states continue their reopening plans and consumers spend more on home improvement products. BBBY shares closed at $ 10.81 on Friday, after down 37% this year.
