5-Chart Friday (9/11/20)

By Charlie Bilello

11 Sep 2020


5 charts from the past week that tell an interesting story in markets and investing…

1) End of a Trend?

The Nasdaq 100 ETF closed below its 50-day moving average today for the first time since April, ending one of the longest runs ever.

Created in YCharts

It is now down over 10% from its recent high, marking the fastest 10% correction in its history.

2) A Quarter to Forget

99% of companies in the S&P 500 have now reported second quarter earnings.

The results: -49% over the prior year.

Sales were down 10.3%.

Current expectations from S&P Dow Jones are for earnings to improve to a -20% year-over-year decline in Q3 and -16% in Q4 with a new high in earnings by Q3 2021.

3) No V-Shape Recovery in Jobs

The good news: US Unemployment Rate continued to improve in August, moving down to 8.4%. In April it hit its highest level since the Great Depression, 14.7%.

The bad news: a v-shape recovery this is not, as it stood at 3.5% in February before the covid shutdowns began.

As of the end of August, there were still over 29 million Americans filing for some form of unemployment, pointing to a slower recovery in overall jobs than the 8.4% number would imply.

4) Peloton Proliferation

Can’t go to the gym? Buy exercise equipment and workout at home. Few companies were poised to benefit from this trend as much as Peloton, whose pricey bikes became a staple item for many Americans.

In the second quarter of 2019, Peloton reported $223 million in revenue. This week Peloton reported $607 million in revenue for the second quarter of 2020, a 172% year-over-year increase.

The result: a booming stock price. When Peloton went public one year ago, it had a market cap of $7 billion. In after hours on Thursday its market cap approached $27 billion, nearly as high as Ford…

Created in YCharts

5) US Covid-19 Declines Continue

The US reported an average of 34,703 new covid-19 cases per day over the last week, the fewest since June 25.

With schools reopening across the country, hopefully this downtrend will continue.

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And that’s it for this week. Thanks for reading.

Have a great weekend everyone!

-Charlie

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Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For our full disclosures, click here.

About the author

Charlie Bilello

Charlie is the founder and CEO of Compound Capital Advisors.

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