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Today we are watching…
1. BlackRock (#blckrck)
Larry Fink is the CEO of BlackRock, one of Wall Street’s huge asset managers. He went on tele yesterday to talk about how the stock market was disconnected from reality. He sees more pain ahead, and he can’t understand why stocks continue to climb. “Bankers have told me to expect a cascade of bankruptcies to hit the America economy.” Fink has been advising the president on economic matters and believes the Federal Reserve should jump in with even more stimulus to stabilize markets. If more is done, however, Fink reckons corporate tax will need to jump from 21% to 27% next year. That’s massive, and stocks wouldn’t like it!
2. Peloton Interactive (#pton)
Investors were wincing as Peloton revealed its first-quarter financial results yesterday, but it didn’t turn out that bad. The company’s officially coronavirus-proof. Shares rose 4% as the firm’s revenue rocketed 66%, and paid digital subscribers went up 64%. These numbers could carry the home fitness machine brand for the rest of the year, but it’s looking like the second quarter will deliver for them as well. Don’t forget that stock prices are forward-looking. It doesn’t matter how good things are today. All eyes are turning to unlocking the lockdown, and how many quarantined customers will stay loyal when real gyms reopen.Â