Mrkt nos..30 Jul 2020 06:00
Kodak sprinted higher after yesterdays 200% gain the stock surging over 300% to ($34) by mid'day and adding 25,000 Robinhood investors into the mix. It has been a remarkable turnaround. Any sensible valuation is nigh on impossible for a generic drug maker with no products and no sales. Drug makers trade on c.1.5x sales so Kodak might bring $300-$400m in sales based on the $765m loan but very much a finger in the air, buggins choice as to fair value. Its thought the 'shorts' have had their pants taken down to the tune of $50m betting against Kodak.
Back in the real world of stock jiggery- pokery US mrkts edged up nervously awaiting pointers from the 2 day meet of the Fed. Powell said little that wasn't already well known, rates at near zero and the economic recovery thwarted by increasing corona-v and stay at home consumers.
Stocks reporting saw GE fall 5% as eps fell 66% and revs off 8%. GM fell 2% ($26) on reporting its first Q loss since emerging from bankcruptcy and AMD rose on earning beats and raised Y/E forecast, shares up $9 to $76. To date 78% of the 166 companies to report have beaten the 'Streets' estimates, low as they undeniably were.
US airlines were parked in slots awaiting the big take-off, all losing around 2%-5%. With global capacity down c.70%, flights by 53% airlines will struggle for years to come and some may land up in the Nevada Desert sands. Boeing was given a 'pass' by the mrkt as it reported widening 2Q losses, eps down 90%, revs off 26% and NP down 140%. The Co has $32bn cash on the balance sheet. Boeing shares traded down $7 to $166 and lagged the Big Board gainers.
Coronas were quiet, Novavax and Moderna off 2% and Pfizer u/c. The US Health Dept said it had agreed to buy all of the next 3 months output of Gilead's 'remdesivir' drug, a single treatment will cost $2340. Gileads stock fell $1 to $73. As London closed the Dow was 100 better, techs back in favour up 112 and over 10,500 mark. Tesla up $28 to $1505, Amazing added $17 to $3017, Msoft u/c $203 and Flix off $3 ($485).
Messrs Cook, Zucks, Bezos and Pichai (Google) are being grilled by the House Judiciary Committee. Their year long antitrust investigation into the monopoly and abuses of FAANG companies, their massive mrkt dominance of the digital/e-commerce space continues a'pace. Today sees Eli Lilly, Fbk, Amazon, Alphabet (ex Google), Gilead, AZ, RDSA+B & P&G (Q4) report.
At close:
DJ +160 (26540)
SP +40 (3258)
NS +141 (10,543)
R2 +31 (1501)
WTI $41.27
10y/tb 0•576%
Nos: Oil $44.11. Vix 24.
Gold $1.298. Palm $718.
$1.298.€1.202. IDR 14598.
MSCI(W) 555. FF +12. DF -26.
Morning all.
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