The Wall Street trading day opened with gains but moved to a mixed trend, following President Trump’s orders over the weekend. These are orders designed to ease the US economy in parallel with orders banning transactions with BiteDance, Tiktok’s parent company, and Chinese Internet giant Tencent, which runs the WeChat messaging app. In response, Tencent shares fell on the Chinese stock market (expansion here). The market will also examine the implications of the continued government support given over the weekend which mainly relates to the continued support for unemployment benefits, when there are expectations for continued support for businesses and financial markets.
Indices on Wall Street
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Wall Street Trading Week opened up against the backdrop of the mixed closing of the past trading week, when no new fiscal incentives have been announced and the US economy is recovering, but analysts say it is fading relative to other economies around the world. In addition, despite the crisis, profit multipliers are at their highest level in 20 years. The good news: The number of people infected in the US has started to decline recently, with some of the major European countries actually showing an increase (for the full article).
Against this background, US President Donald Trump on Saturday signed a series of presidential decrees, designed to ease the American economy. This, after Democrats and Republicans failed to reach congressional agreements on a new fiscal plan. The two weeks will be $ 400 a month, and student loans will be deferred to the end of the year. In addition, tax relief will be given for a certain period to those eligible, and the permit to defer loans and mortgages will be extended. In the powers of Congress (for the full article).
Following a sharp rally recently, sentiment around major technology stocks has weakened in the past two trading days amid rising tensions between the US and China. Last Friday, President Trump signed two presidential decrees banning transactions with BiteDance, Tiktok’s parent company, and Chinese Internet giant Tencent, which runs the WeChat messaging app (for the full article). A few hours after the orders were signed, the US announced economic sanctions against Hong Kong leader Carrie Lam, alleging violations of freedom in the former British colony.
Tensions between the two countries continue to intensify today, with the Chinese foreign minister claiming that the country is expected to announce its own sanctions on American public figures, in response to sanctions on the mother (for the full article).
Shares in the center
The Israeli biotech company Floristem (NYSE: PSTI) jumped 6% in early trading after the German health regulatory agency, the Paul Ehrlich Institute, approved the company’s clinical protocol for Phase 2. Floristem’s study deals with intramuscular injections of PLX PAD, for treatment In severe corona patients. (To the full article)
Following the announcement that more than 800,000 passengers had visited airports across the United States last Sunday, the aviation sector soared. American Airlines (NYSE: AAL) rose 7.4%, United Airlines (NYSE: UAL) jumped 9.3%, Delta (NYSE: DAL) rose 8%, Boyang (NYSE: BA) added another 5.4%. In what appears to be a recovery, it culminates at best in the beginning of a long and painful journey of the airlines, for which many more challenges lie ahead.
Seres Therapy Company (NYSE: MCRB), which specializes in microbiome therapy, reported positive results in a Phase 3 trial of the SER-109 drug, which treats colon infections. The company’s stock, which traded at one of the highest trading volumes today, jumped 390%, reaching a market value of $ 1.7 billion. (To the full article)
The biggest losers so far from the deterioration in China-US relations are the big technology stocks. Tencent shares fell 4.8% this morning and completed 9.6% declines in the last two trading days – the sharpest two-day decline since last October. At the same time, US technology stocks Show weakness – Apple (NYSE: AAPL) fell 2.5% last Friday – but rose 1.5% today.
Shares of Nicola (NYSE: NKLA) jumped 21.9% after the company, which designs and manufactures non-polluting trucks traveling on hydrogen batteries, announced that it had signed an agreement to sell 2,500 trucks to the garbage disposal giant, Republic Services (NYSE: RSG) – whose market capitalization is about $ 29 billion. The amount of the monetary consideration of the transaction was not reported (for the full article).
Shares of Kodak (NYSE: KODK) plunged 28.2%. After the company’s shares rose more than 1,000% last week, in light of the US administration’s intention to provide the company with $ 764 million in assistance, last Friday the US Government Development and Investment Fund (DFC) announced that the company is suspected of using inside information and for now the aid has been stopped Until the allegations are refuted (for the full article).
Shares of Trevena (NYSE: TRVN) soared 32.3% after the biopharmaceutical company received FDA approval for the company’s OLINVYK drugs to treat severe pain that is severe enough to require intravenous opioid painkillers for which alternative therapies do not provide. The drug will be available in about 90 days.
Is the retail giant Amazon (NYSE: AMZN) on its way to expand into malls as well? In the US, the company is reportedly in talks with mall operator Simon Properties (NYSE: SPG) about the possibility of turning parts of the mall, which had been abandoned following the collapse of JC Penny and Sears, into warehouses for Amazon (full article).
Berkshire acquires Berkshire – Buffett took advantage of the declines for repeat purchases. Following the huge loss in the first quarter of 2020, Berkshire Hathaway (NYSE: BRKA, BRKB) posted a net profit of $ 26.2 billion in the second quarter. The amount of repurchases soared to $ 5.1 billion in the quarter. And yet, cash has risen to a record $ 146 billion (for the full article).
Microsoft (NYSE: MSFT) was the first to publicly announce that it was courting the Chinese video app “Tick Talk”, with Twitter (NYSE: TWTR) also joining the race. According to a Wall Street General report, Twitter executives held preliminary discussions on a “merger” with Tic Tac. It is not clear whether Twitter is obsessed with purchasing the app, and it should be remembered that every transaction will face major obstacles (for the full article).
In the Israeliness segment, the share of the Israeli technology company, Siva (NYSE: CEVA) rose by 8.6% after reporting a record income. Revenue rose from $ 18.4 million in the same quarter last year to $ 23.6 million – an increase of 28%. The consensus was $ 21 million. Net income also jumped, rising from $ 1.2 million in the second quarter of 2019 to $ 2.9 million, an increase of 130%, while the net profit margin stands at 12% (for further article).
Shares of WIX (NYSE: WIX) fell 4.7% after the Israeli website development company announced a private placement to institutional investors of senior bonds for $ 500 million. The bonds will be repaid in 2025, which of course means a possible dilution of the company’s shareholders. The round of raising is expected to last about two weeks, with the company leaving an opening to raise an additional $ 75 million in case of high demand (full article).
Gilat (NYSE: GILT), which provides solutions for satellite communications networks, reports that it has won a contract worth more than $ 10 million for the provision of 4G mobile transmission services in Latin America. As part of this, it will provide cellular coverage to half a million people in hundreds of remote villages, with significant expansion potential, estimated at tens of millions of dollars more in the future (for the full article).