The outbreak of the coronavirus has dealt a shock to the global economy with unprecedented speed. Following are developments Friday related to national and global response, the work place and the spread of the virus.
SUPPLY DEMANDED: The virus has upended supply chains and shut stores that would typically furnish goods and services.
— Amazon India is filling nearly 50,000 seasonal positions across its fulfillment and delivery networks to keep up with increased demand. The company said in a blog post Friday that the jobs will include part-time flexible work opportunities as independent contractors with Amazon Flex.
— Bed Bath & Beyond plans to reopen about 600 additional stores within three weeks and bring back 11,000 furloughed workers. The vast majority will be Bed Bath & Beyond locations, but it’s also opening dozens of its Christmas Tree Shop stores and Cost Plus World Market stores. Its buybuy BABY and Harmon Face Values stores have remained open because to provide essential goods.
EARNINGS SEASON: The worst was expected this season and must Wall Street analysts believe the majority of companies at least dodged that. But 40% of all S&P 500 pulled all financial guidance for the year due to the chaos of a pandemic.
— Deere CEO John May said the virus has created a lot of uncertainty and the company expects global sales of its agriculture equipment to fall between 10% and 15% this year, and for construction and forestry equipment to fall as much as 40%. The company on Friday reported that revenue fell 18%, and profits tumbled 41% in its most recent quarter. Both were better than expected.
— Foot Locker’s comparable-store sales plunged 42.8% in the quarter and its loss of $98 million far exceeded all projections. The footwear chain suspended its dividend for this quarter, cut its capital expenditure expectations in half, slashed salaries, and also deferred executive compensation for top executives.
— The Buckle, which closed all of its stores on March 18, reported a loss of $11.8 million, and sales slumped 42.7%. It has since opened 331 of its locations in 42 states.)
WANDERLOST: Travel has come to a standstill and tourist destinations, from Florida to Italy face potential catastrophe.
— Spain’s National Statistics Institute said Friday that hotel occupancy was “nil,” in April as the nation shut down. The institute published columns of zeros for overnight stays, average length of stays and occupancy rates. Spain is Europe’s second most popular tourist destination, after France.
— Portugal’s foreign minister says tourists are welcome in his country and no quarantine will be imposed on people arriving by plane. The country is pushing for the reopening of all beaches, hotels, restaurants and national monuments.
Foreign Minister Augusto Santos Silva said Friday that “minimal health controls,” which he did not specify, will be enacted at airports. Other European countries, including Spain, Italy and the United Kingdom, have sought a 14-day self-isolation rule for arrivals.
GOVERNMENTS & CENTRAL BANKS: The U.S. this week reported that 39 million people have lost jobs. Federal Reserve Chair Jerome Powell said uncertainty is certain. That is the theme for countries on every continent.
— Japan’s central bank will provide some 30 trillion yen ($280 billion) to banks for financing small and medium-size businesses battling economic hardships brought on by the pandemic. The Bank of Japan will start providing funding to the banks in June, it said Friday. The offer for zero-interest and unsecured loans comes on top of earlier measures, such as 20 trillion yen ($187 billion) for purchasing corporate bonds and commercial papers.
MARKETS: It was another rollicking week on Wall Street, but it appears they’ll finish up for the week.
7 Stocks That Aggressive Investors Can Buy Now
There’s nothing like a steep market correction to test the risk appetite of even the most seasoned investor. With many investors seeing their 401k’s down 25%, 30% or more, it’s not surprising that many investors are taking money off the table.
And even during the most bullish market conditions, keeping some powder dry is a prudent decision.
But if you have an above-average risk appetite, then sitting on the sidelines is not your cup of tea. If you’re an investor with above-average risk tolerance, there are some opportunities to profit in this market. But you have to be looking in the right places.
At this time, the small-cap sector offers some interesting choices. Small-cap stocks are companies that have a market cap of less than $2 billion. Many of these stocks fall under the category of penny stocks, but that doesn’t make them bad. In some cases, they’re just obscure companies.
But right now, many investors will take growth wherever they can get it. And that’s why you should take a careful look at the 7 stocks we have in this presentation. The cost of entry is not high and the potential reward is worth your interest.
View the “7 Stocks That Aggressive Investors Can Buy Now”.
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