Episode 44: Markets sell-off as the Dow hits a 650 pt drop.

Happy Monday. As we kick off the week we are having a major sell-off because covid cases are up and there is a lockdown now being implemented in Europe, in addition to progress on stimulus conversations drying up and Q4 earnings are under threat.  

With either a red or blue wave it will be a tough road ahead. The current administration continues to push the narrative that we are coming out of the pandemic. The current approach will prolong businesses being able to reopen while we have rising cases of Covid until there is a vaccine. If we have a blue wave you might have to rip the bandaid off for an intermittent shut down until the numbers are under control.  On both sides, the prolonging of the stimulus package is having a critical impact on the recovery of the market.

The second wave has put pressure on casinos, cruise lines, and DraftKings with a 5% drop on the markets today. All the reopening stocks are having a tough time industrials, energy, and consumer staples.  On earnings, SAP reported total revenue down which dropped their stock over 23 percent. They gave guidance that their cloud business is being impacted which is odd given how their counterparts in other cloud services have been performing positively.  

Earnings line up

Monday: Twilio, Hyundai 

Tuesday: Microsoft, AMD

Wednesday: Pinterest, Sony

Thursday: Samsung, Facebook, Apple, Amazon, Google, Twitter, Spotify, and Shopify. 

Friday: LG 

Market Closed Down

Dow 30 27,685.38-650.19 (-2.29%)

S&P 500 3,400.97-64.42 (-1.86%)

Nasdaq 11,358.94-189.34 (-1.64%)

IPO

San Francisco home rental giant Airbnb plans to split its privately held shares in the run up to a planned IPO by year's end.  The split will be effective Tuesday, according to an internal company email.

Shares before the split were reportedly valued at $69.76 as of Sept. 30 and were valued at $34.88 apiece afterward. The report also stated that Airbnb shares have gone up 10.4% from their last valuation reported to the IRS, a boost that came primarily from the summer season.

Airbnb filed confidentially for an IPO in August and inside sources have said that the company plans to make its filing publicly available after the November election. Airbnb is looking to raise about $3 billion in the IPO, Reuters reported.

Get ready for our spooky Friday recap with the Pandocap team.  Have a great week.