Daily summary:
- Wall Street was coming off a losing week as shares of major tech companies struggled and U.S.-China tensions rose. The Dow and S&P 500 each snapped a three-week winning streak. The Nasdaq, meanwhile, posted its first back-to-back weekly losses since May.
- Friday close was red for most stocks: Dow jones (Symbol: DIA) closed -0.72%, S&P500 (Symbol: SPY) -0.81%, NASDAQ (Symbol: QQQ) -1.1%.
- Tesla (Symbol: TSLA) shares fell more than 7% for their biggest one-day decline since May as traders booked profits from some of the best-performing stocks of 2020. The stock was also headed for its first consecutive weekly decline since May.
- Intel (Symbol: INTC) Shares of the semiconductor company sank more than 15% after the company said in its earnings report that its gross margin shrank, and it was experiencing production delays with its next-era chips. The report led to a flurry of downgrades from analysts.
- Advanced Micro Devices (Symbol: AMD) The chipmaker’s stock jumped 16% after rival Intel said it was experiencing product delays. AMD is already selling 7-nanometer processors, while Intel said it is delaying its version by about six months.
- The delay puts Intel further behind chip foundry Taiwan Semiconductor Manufacturing (Symbol: TSM) was up 9.8%, which is already mass-producing chips at 5-nanometer scale. Intel’s current state-of-the-art chips are at 10-nanometer scale. Circuit widths on chips are measured in nanometers, which are one-billionth of a meter. Smaller circuits translate to faster, more power-efficient processors.
- Honeywell (Symbol: HON) — Shares of the industrial name fell more than 2% after the company said it expects to face ongoing sales challenges in certain areas of its business due to the pandemic.
- Shares of eHealth (Symbol: EHTH) were crashing 29.9% lower on Friday. The company reported its second-quarter results after the market closed on Thursday. Its numbers looked great, though investors are concerned about the online health insurance provider’s churn rate — a measure of how many customers leave to shop elsewhere, the company isn’t able to address it. Such a trend would indicate significant underlying problems for the business.
- Shares of electric-semi start-up Nikola (Symbol: NKLA) were trading lower 11.84% on Friday, after the company said that it will begin redeeming 23 million warrants. Those warrants, each give the owner the right to buy one share of Nikola from the company at $11.50, well below recent price levels. assuming that all of the warrants are exercised, it will put 23 million new shares of Nikola into circulation, diluting existing shareholders.
What to look for:
- Treasury Secretary Steven Mnuchin said on Sunday Republicans have finalized their latest piece of coronavirus relief legislation, the bill is worth about $1 trillion and is set to be introduced Monday.
- Biotech company Moderna (Symbol: MRNA) announced the U.S. government has committed up to an additional $472 million to its efforts to develop a coronavirus vaccine. In a statement, the drug maker said the funding would go to late-stage clinical development, including an expanded Phase 3 study of its vaccine candidate.
Critical week for markets as some of the biggest companies report earnings:
BMC: Before Market Open, AMC: After Market Close.
- Monday: BMC: RYANAIR HOLDINGS PLC (Symbol: RYAAY), RPM INTERNATIONAL INC. (Symbol: RPM). AMC: F5 NETWORKS, INC. (Symbol: FFIV), BROWN & BROWN INC. (Symbol: BRO), UNIVERSAL HEALTH SERVICES INC. (Symbol: UHS).
- Tuesday: BMC: 3M co. (Symbol: MMM), Pfizer (Symbol: PFE), Altria group Inc. (Symbol: MO), Yandex (Symbol: YNDX), McDonald’s (Symbol: MCD). AMC: Advanced Micro Devices (Symbol: AMD), Starbucks (Symbol: SBUX), Visa (Symbol: V), Ebay (Symbol: EBAY).
- Wednesday: BMC: Barclays (Symbol: BCS), Spotify (Symbol: SPOT), Six Flags Entertainment (Symbol: SIX), Garmin (Symbol: GRMN), AMC: Facebook (Symbol: FB), PayPal (Symbol: PYPL), Qualcomm (Symbol: QCOM), Teladoc (Symbol: TDOC), Cheesecake Factory (Symbol: CAKE).
- Thursday: BMC: United Parcel Service (Symbol: UPS), Mastercard (Symbol: MA), Procter&Gamble CO. (Symbol: PG), Comcast Corporation (Symbol: CMCSA), Eli Lilly (Symbol: LLY), AMC: Apple Inc. (Symbol: AAPL), Amazon.com Inc. (Symbol: AMZN), Alphabet Inc. class C (Symbol: GOOG), Alphabet Inc. class A (Symbol: GOOGL), GILEAD SCIENCES INC. (Symbol: GILD), MGM RESORTS INTERNATIONAL (Symbol: MGM), ELECTRONIC ARTS INC. (Symbol: EA), SHAKE SHACK (Symbol: SHAK), EXPEDIA INC. (Symbol: EXPE), WORLD WRESTLING ENTERTAINMENT INC. (Symbol: WWE).
- Friday: BMC: EXXON MOBIL CORPORATION (Symbol: XOM), NOKIA CORPORATION (Symbol: NOK), ABBVIE INC. (Symbol: ABBV), CATERPILLAR INC. (Symbol: CAT), PINTEREST (Symbol: PINS), CHEVRON CORP. (Symbol: CVX), COLGATE-PALMOLIVE (Symbol: CL).