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Today we are watching…
1. BlackRockย (#blckrck)
Larry Fink is the CEO of BlackRock, one of Wall Streetโs 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 canโt understand why stocks continue to climb. โBankers have told me to expect a cascade of bankruptcies to hit the America economy.โ 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. Thatโs massive, and stocks wouldnโt like it!
2. Peloton Interactive (#pton)
Investors were wincing as Peloton revealed its first-quarter financial results yesterday, but it didnโt turn out that bad. The companyโs officially coronavirus-proof. Shares rose 4% as the firmโs 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 itโs looking like the second quarter will deliver for them as well. Donโt forget that stock prices are forward-looking. It doesnโt 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.ย