Trump Tweets Drag Down the Dow. Aurora Cannabis Stock Is Flying.

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

President Trump Donald roiled stock markets with a series of tweets criticizing China on Wednesday night, saying “China is on a massive disinformation campaign,” and “trying desperately to deflect the pain and carnage that their country spread throughout the world” via the Covid-19 pandemic.

Those are strong words and investors are taking note of escalating U.S.-Chinese tensions. Stocks around the world are in the red Thursday morning. Hong Kong’s Hang Seng Index, for instance, is off 0.5%. Europe’s FTSE 100 Index has fallen 1%.

U.S. stock futures are down as well. Dow Jones Industrial Average futures have slipped 0.7%, while S&P 500 futures have fallen 0.8%. The Nasdaq Composite dropped 0.6%.

The pandemic continues to wreak havoc on many aspects of the economy, including the retail and travel industries.

Stock in the discretionary retailer L Brands (LB) was up about 0.3% in premarket trading after reporting numbers Wednesday evening. Sales and earnings missed Wall Street estimates by a wide margin, but the shares are up because a lot of bad news is already reflected in the price. L Brands stock is down about 32% year to date and almost 50% over the past three months.

Expedia (EXPE) reported first-quarter numbers after the close of trading as well on Wednesday. The company reported a loss of $1.83 a share, while Wall Street was looking for $1.27. Still, shares are up about 2.7% in premarket trading. Expedia stock, like L Brands shares, has been badly beaten up in 2020, falling about 26% year to date and 34% over the past three months.

There was some better earnings news Wednesday evening, too. Take-Two Interactive Software (TTWO), which produces games including NBA2K and Red Dead Redemption, crushed Wall Street earnings estimates for the first calendar quarter of 2020. The company earned $1.50 a share, while analysts were looking for 90 cents. But the stock, already up about 20% year to date, is down about 4.5% in premarket trading Thursday.

The pattern is clear: Expectations often matter more to stocks than the actual earnings. A similar phenomenon is playing out in the energy market.

Oil prices are up for the sixth straight day. Benchmark crude futures are up about 2.2%, bringing their month-to-date gains to about 82%. Shares of oil producers, however, are starting to diverge from the daily moves in the price. Occidental Petroleum (OXY) shares, for instance are off 0.7% in premarket trading. Exxon Mobil (XOM) stock is down 0.4%. Stock in the energy-services giant Halliburton (HAL) is down about 1.3%.

Marijuana producer Aurora Cannabis (ACB) stock is also moving, up on deal news. Shares are up more than 30% in premarket trading after the company announced a deal to buy a CBD company. It’s a huge move, but Aurora shares are down 50% year to date and 90% below their all-time high. Even after the premarket jump, the stock is still down about 88% from its highest point.

This article was originally published on finance.yahoo.com/news

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

Expert who called the 2008 crisis says the signal to sell stocks is coming soon

It is a bumper week of U.S. corporate earnings and one that will tell us more about the devastating impact of coronavirus on the...

Will Prudential (PRU) Beat Estimates Again in Its Next Earnings Report?

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain...

Airlines are issuing billions of dollars in vouchers — but can you still get a cash refund for coronavirus-related flight cancellations?

While airlines are providing refunds when they cancel flights, very few carriers are doing so when a customer proactively chooses to cancel a trip...

Iranian fuel reaches Venezuelan stations as prices set to rise

Fuel shipped from Iran began arriving at Venezuela's gasoline stations on Saturday, just hours before President Nicolas Maduro announced higher prices at the pump...

Learning will change with COVID-19’s social distancing

In response to the spread of COVID-19, on February 3, 2020 the islands off the east coast of China, known as Hong Kong, closed their schools....
Home of Science
Follow me