Is the Market Still Undervaluing Amazon?
Wealthpress Head Trader Roger Scott and Joy of the Trade Head Trader Jeff Zananiri joined Midas Letter to discuss the big week ahead in the stock market. 172 S&P 500 Index (INDEXSP:.INX) companies and 12/30 components from the Dow Jones Industrial Average (INDEXDJX:.DJI) report earnings.
The “Big 5” tech companies: Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL) Facebook, Inc.(NASDAQ:FB), Google (Alphabet Inc) (NASDAQ:GOOG) (NASDAQ:GOOGL) and Microsoft Corporation (NASDAQ:MSFT) are all reporting. The traders are interested to see if there will be a further divergence between the NASDAQ 100 Index and the S&P 500 Index if those companies earnings are inline with positive expectations. The S&P 500 has been largely weighed down by energy and financial stocks in recent times.
Amazon is expected to come out with positive earnings – perhaps larger than ever before. As e-commerce companies capitalize during the current pandemic, the trio discuss whether this is a temporary phenomenon and what the world is going to look like after the crisis starts to “normalize”.
Its clear to see the economy has suffered since the onset of the Coronavirus or COVID-19. Most indices have supported this plunge in value. Unemployment job claims in the U.S. has been at record highs. However, during more volatile times in the economy, there are still ways for traders to make profits.
As the price of oil plummeted into negative territory for the first time in history, the traders have been profiting from trades such as: Scorpio Tankers Inc. (NYSE:STNG). The negative oil prices are a result of oversupply that doesn’t meet demand due to coronavirus. Oil traders are now selling their future contracts and are not taking the delivery of their oil. Due to this “super contango” situation, oil needs to be stored somewhere. In steps oil shipping tanker companies like Scorpio.
Watch the entire interview to see more companies the investors are making profits trading and where they see the market trending this week.
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