Tag Archive : Weak

/ Weak

The continuing strength of the stock market, even as the coronavirus pandemic batters the U.S. economy, has baffled many investors. The Dow Jones Industrial Index fell some 35% in 20 trading days the first three weeks of March as COVID-19 began spreading rapidly globally, but it has since gained nearly 60% to levels above 28,650. At the same time, the Commerce Department reported the U.S. economy shrank 31.7% in the April-June quarter. Part of our job at Equitas is to research many areas of the market and the economy, analyze the current environment, and to search for the investment opportunities. While there are numerous views and theories, in this KnowRisk Report we explore and expand on why the stock market is so strong, while the economy is so weak. We start with Wharton finance professor Itay Goldstein who has boiled it down into two reasons: the long-term prospective of the

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Getty Images / Cliff Hawkins


© Getty Images / Cliff Hawkins
Getty Images / Cliff Hawkins

  • An influx of retail-investor interest in Penn National Gaming boosted shares too far, too fast, Deutsche Bank said Thursday.
  • The bank’s analysts lifted their price target for Penn National Gaming shares on Thursday to $31 from $22, implying a 57% plunge over the next 12 months.
  • While Penn National’s improvements to operating costs show promise, the stock has transformed “into an internet meme of sorts” without the fundamentals to support its rally, the analysts said.
  • Few states are interested in passing online gambling legislation, and the company’s total addressable market is smaller than bullish investors realize, they added.
  • Watch Penn National trade live here.

Penn National Gaming shares are up more than 800% from their mid-March trough, but Deutsche Bank doesn’t think the rally will hold.

Analysts Carlo Santarelli and Steven Pizzella raised their price target to $31 from

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The global decline in air travel will be worse than previously forecast and a new report on corporations’ plans for travel through 2021 shows that the recovery of business travel demand will continue be sluggish even after one or more Covid-19 vaccines become available, hopefully, in the first half of 2021.

The International Air Transport Association, the airline industry’s global trade group, said Tuesday that global passenger traffic this year will be down a whopping 66% from 2019. Previously IATA had forecast a decline of 63%.

While the revised view is only 3 percentage points worse than IATA’s previous forecast, the enormous numbers of passenger miles flown

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