Investors are bracing for another trading week, as the US government's stimulus and hopes for a V-shaped recovery have fueled an unprecedented bull run since markets hit rock bottom in the pandemic in March. Nevertheless, the coronavirus continues to spread and doubts arise about a rapid economic recovery.
United States. cases rose 1.6% on Saturday, the biggest jump in three weeks, as more than 30,000 infections were reported for a second consecutive day. Florida set a new record for outbreaks. After gaining more than 40% from its March lows, the S&P 500 turned sideways for the past two weeks, trading at a similar level to early June.
But although the US stock indices gave some gains on Friday, they still closed higher for the week. It was up 1.8% in the week, the fourth positive week in five. The 30 stocks were up 1%, while the tech heavy outperformed 3.7%. In addition to the broader market-moving events, here are three stocks we'll focus on due to specifics related to their individual performance:
1. Apple
For Apple ( NASDAQ 🙂 investors are important next week. The maker of popular iPhones and other gadgets is starting its annual development conference.
Third-party developers have been an integral part of driving a service company that brought in Apple more than $ 46 billion in the past fiscal year, nearly 18% of the iPhone maker. According to Bloomberg, the company plans to announce a transition from Macs based on Intel (NASDAQ 🙂 chips to computers with Apple's own processors.
AAPL Weekly 2017-2020
“The shift will force developers to update their apps to support the hardware, which could be a lengthy process. Apple also wants the latest software features for the iPhone, Apple Watch and iPad to encourage developers to build new apps for the devices, ”the report said.
Since the low of March 23, the rebound in Apple stock has been remarkable. They have since surged more than 60% and closed at $ 349.72 on Friday, slightly below the record high of $ 356.56 that the stock reached intraday on June 19.
2. Nike
Nike (NYSE 🙂 will release its fourth quarter fiscal 2020 earnings on Thursday, June 25 after closing the market. Analysts expect the sportswear giant to make an average profit of $ 0.12 on revenues of $ 7.45 billion.
It was the first full three-month period in which hundreds of millions of people in Europe and the US lived under various forms of sealing, forcing the Beaverton, Oregon-based company to close stores and sacrifice sales.
Chief Executive Officer John Donahoe told analysts in late March that the company's e-commerce business remains “in growth mode,” despite the demand shock caused by the corona virus outbreak.
"In a time when people were at home, we were quick to take full advantage of our digital app ecosystem and Nike expert trainer network," he said by accelerating app sign-ups and involvement in Nike Training Club training.
Hopes for strong online sales have helped Nike stocks recover from the March low of $ 60.58. They closed at $ 95.78 on Friday, up 58% since then.
3. PG&E
Uncertainty about the future of Pacific Gas & Electric (NYSE 🙂 is probably over after the utility company that serves Northern and Central California , the final approval of its bankruptcy plan by the US Bankruptcy Court for the Norther District of California. A judge confirming PG & E & # 39; s Chapter 11 plan will cover billions of dollars in damages claims from catastrophic wildfires in 2017 and 2018, linked to the company's equipment.
"PG&E is determined to emerge from Chapter 11 as a fundamentally enhanced and transformed tool that meets the highest safety, governance, and operating standards," Chief Executive Officer Bill Johnson said in a statement on Saturday. The company said it is expected to come out of bankruptcy in July.
PG&E filed for bankruptcy in January 2019 after its faulty equipment was involved in wildfires that killed more than 100 people and burned tens of thousands of homes in Northern California. It is the largest utility reorganization in American history. After falling more than 5% on Friday, the stock closed at $ 10.22.
