It’s a good thing we stayed on the sidelines yesterday.
Thanks to fears of a “second wave” of the coronavirus, the Dow Jones fell more than 1,800 points. With more than 7.4 million confirmed cases now on the books, with 417,829 unfortunate deaths, the coronavirus is still a massive threat.
Coronavirus hospitalizations are exploding in Alaska, Arkansas, Kentucky, Mississippi, North Carolina, Oregon, South Carolina, and Utah. In Phoenix, Mayor Kate Gallego says, “We opened too much too early and so our hospitals are really struggling.”
Even experts at Johns Hopkins University are warning of another severe breakout, especially with recent riots and protests, state reopening, and a good number of people failing to socially distance themselves.
However, after such a brutal rout, markets will attempt to regain some lost ground, with Dow futures now up 545 points. NASDAQ is pointing to a gain of 156.
As for new opportunities, electric car maker, Nio (NIO) is piquing a lot of investor interest.
Since late May 2020, the stock has exploded from a low of $3.25 to $5.91, and could see further upside thanks to stronger deliveries, and a recent upgrade from Goldman Sachs. The firm believes liquidity risks that challenged the company “have started abating,” as quoted by MarketWatch. In addition, the company is seeing much stronger demand.”
While NIO does carry some risk, it appears the company has turned the corner.
