|Bid||255.12 x 900|
|Ask||254.65 x 1200|
|Day's Range||250.69 - 255.32|
|52 Week Range||182.10 - 295.87|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-10.05%|
|Beta (5Y Monthly)||0.99|
|Expense Ratio (net)||0.16%|
Top news and what to watch in the markets on Friday, May 29, 2020.
Top news and what to watch in the markets on Tuesday, May 26, 2020.
The stock market gets a full day off for Memorial Day. The bond market gets Monday off too, not to mention an early close ahead of the holiday weekend.
Now investors should look ahead to the post-vaccine world: Sell stocks that are hot today but will experience deteriorating earnings momentum after a vaccine comes out and buy quality stocks with good balance sheets that will experience positive earnings momentum in that new era. This chart compares the Dow Jones Industrial Average ETF (DIA) to seven stocks that I am using to illustrate shifts in money flows. • Zoom Video (ZM) has been one of the biggest beneficiaries of coronavirus.
The Dow Jones Industrial Average (DJIA), created by Charles Dow in 1896, is one of the oldest U.S. market indexes. It is commonly referred to as "the Dow" and stands alongside the S&P 500 and Nasdaq Composite as one of the three main indexes tracking U.S. equities. The Dow has recently faced intense volatility due to fears surrounding the coronavirus pandemic and other global geopolitical developments.
This internet ETF has outperformed not only the S&P 500 and Dow Jones Industrial Average, but also the Nasdaq.
One of the hottest sectors in the stock market is ecommerce. None of this is a problem for momentum investors, who do not care about analysis. For prudent investors, there is an opportunity in one of the biggest ecommerce stocks in the world that has not been run up by momentum investors.
This year has been a difficult one so far for investors in Boeing (NYSE:BA). Year-to-date, BA stock is down about %63. Now that the earnings season is behind us, investors are wondering if it may be an opportune time to buy.Source: Shutterstock Due to the COVID-19 pandemic, the story of tourism, air travel and the aviation industry has become a painful one. For example, as of April, air travel in the U.S. is down 95% from a year ago. And we do not yet know when air travel, especially international travel, may start fully again.Therefore, if you are not yet an investor in BA shares, you may want to wait several more weeks to have a better appreciation of when especially global air travel may restart. Long-term investors with a 2-3 year horizon may consider investing in Boeing stock if it declines further, especially toward $110 or below.InvestorPlace - Stock Market News, Stock Advice & Trading Tips BA Stock and Q1 EarningsBoeing is our biggest manufacturing exporter, offering commercial planes, defense systems, software and services. After Lockheed Martin (NYSE:LMT), it is also the second-largest defense contractor in the world based on revenue. * 7 Stocks to Buy That Have Nothing But Upside In Their Future On April 29, the aviation giant announced its first-quarter results that showed revenue of $16.9 billion. GAAP loss per share was $1.11 or core (non-GAAP) loss per share came at $1.70. These results primarily reflected the negative impacts of the COVID-19 pandemic as well as the 737 MAX grounding that followed the two fatal accidents of 2018 and 2019.Bowing reported revenue in three main segments: * Commercial Airplanes (about 37% of revenue); * Defense, Space & Security (about 36% of revenue); * Global Services (about 27% of revenue).CEO David Calhoun said, "The COVID-19 pandemic is affecting every aspect of our business, including airline customer demand, production continuity and supply chain stability."Understandable liquidity concerns have been at the forefront too. The group burned through $4.7 billion in cash during Q1. As of the end of 2019, it had around 160,000 employees. Management highlighted plans to cut payroll by about 10% through both voluntary measures and involuntary layoffs.Finally, InvestorPlace readers may remember that the group has already axed dividends and stopped share buybacks. Therefore, passive income seekers are unlikely to return to Boeing as a reliable dividend investment any time soon. I expect it will be at least several quarters before the Board would even re-consider dividend payouts or share buybacks.In case of further supply or delivery questions, Q2 results can also pretty dismal. Can Boeing Stock Recover Soon?Boeing stock started 2020 around $330. At the time, the Street was wondering whether the shares could re-test the all-time high of almost $450 it had seen in March 2019.However, on March 18, 2020, BA stock saw a 52-week low of $89. Now it is hovering at around $120.Boeing's business for the rest of the year has been deeply impacted by the developments on the health and economic front. For example in an April update, Boeing said that customers have canceled 150 of the 737 Max planes. In comparison, during the last quarter of 2019, it had delivered 79 airplanes.Yet Boeing is no ordinary company. It has an undeniable importance to our economy and the aviation sector.In mid-March, President Trump said, "I think we have to protect Boeing."On March 27, he signed the economic stimulus legislation, called the CARES Act. Although Boeing is not specifically mentioned in the aid package, the bill sets aside $17 billion for "businesses critical to maintaining the national security."However, at this point, we do not have the full details of a potential bailout for Boeing.On the other hand, it is likely that an upcoming rescue deal has already been factored into the recent increase in the Boeing stock price. In the past few days, broader markets have been losing steam. They are in part reacting negatively to comments from Federal Reserve Chair Jay Powell. And there may soon be further profit-taking in broader markets. Then I'd expect BA shares to come under pressure, possibly until the next earnings report that would be expected in July. Investor Takeaway on Boeing StockThe steep decline in air travel levels may continue to adversely affect Boeing's revenue, profit, and cash flow. And it will likely drag on the earnings as well as the BA stock outlook, too. There is no doubt that the group is facing an extremely important crisis.Although I expect the Dow Jones Industrial Average member to eventually weather the adverse effects of both the pandemic and the MAX fallout, it will likely take several quarters for Boeing stock price to stabilize. In the coming weeks, I expect range-trading, between $100 and $125.If you already own Boeing shares, you may want to wait and ride out the choppy waters. Alternatively, you may consider initiating an ATM covered call position, for example, with a one- or two-month horizon. A June 19- or July 17-expiry covered call would decrease the volatility in your portfolio, offer some downside protection and also enable you to participate in a potential up move.Finally, those investors who would like some Boeing stock exposure but are nervous about the prospects for the year may consider buying into an exchange-traded fund (ETF) that has the stock as a holding. Examples such ETFs would include the Industrial Select Sector SPDR Fund (NYSEARCA:XLI), the SPDR Dow Jones ETF (NYSEARCA:DIA) or the Vanguard Industrials ETF (NYSEARCA:VIS).Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. As of this writing, she did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post It Will Be a Very Long Road to Recovery for Boeing Stock appeared first on InvestorPlace.
President Trump said Wednesday that “so-called ‘rich guys’” may be “speaking negatively” about the stock market to profit from its decline. Trump’s tweet came after billionaire investor Stanley Druckenmiller said the risk-reward relationship in stocks has never been worse. Trump didn’t identify Druckenmiller in his tweet, and there’s no evidence that the professional investor recently short-sold equities.
A forthcoming Federal Reserve survey says among people who were working in February, almost 40% of those in households making less than $40,000 a year lost a job in March.
The Stifel strategist who predicted April’s market rally says the best strategy right now is to be like the Road Runner: “Step out of the way and let anvil hit Wile E. Coyote — the economy. And then after that, the Fed will act and then you can move on, if you're the investor.”
Powell said in prepared remarks Wednesday that the depth and length of a recession can “leave behind lasting damage," suggesting that those inside the Fed see slim chances of a V-shaped recovery.