MARKETS: YF Premium Investment Idea: Lululemon Athletica (LULU)
Yahoo Finance's Jared Blikre breaks down some of the features of the Yahoo Finance Premium package. Not a subscriber? Start your free trial to join future webinars live!
Video Transcript
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ADAM SHAPIRO: And we're watching a rally on Wall Street. So is Jared Blikre. Tell us the latest as to what's driving these markets higher, especially after what we experienced last week.
JARED BLIKRE: have tech leading, and we've seen this handoff happen just about every other day, so we'll see what happens into the close. But tech is leading, along with real estate, and then communication services not far behind. And we can see in the NASDAQ 100, the big FANG names largely in the positive by a large amount. Apple, Microsoft, Facebook, Alphabet all up over 2%. Chip stocks doing well. Nvidia's up over 6% after announcing its deal to buy Arm. And then Tesla up 8 and 1/2% today.
Well, let's take a look at the VIX, because that is trending lower. And in fact, this is the lowest we've seen since that selloff that began about a week ago, actually into two weeks ago. Also taking a look at the 10-year T-note yield. That is down just one basis point. But now it's time for our Yahoo Finance Premium Investment Idea of the Day, and that is lululemon. And this is a fundamental report by Argus Research, and they're saying they have a target now of $380.
Specifically, they're saying our financial strength rating on lululemon remains medium high, the second highest rating on our five point scale. Company ended the second quarter with $523 million in cash and equivalents, down from $624 million in the prior period a year ago. To reflect the negative impact of the coronavirus over the next two quarters, lowering their EPS targets. And finally, they're saying, with substantial opportunities to expand outside North America, particularly in China, a strong brand and growing e-commerce sales, we think lululemon's prospects are among the best in the apparel sector. Adam.
ADAM SHAPIRO: All right, when we come back, more on the TikTok Oracle deal.
