Today we are watching…
1. American Airlines (#ameriair)
American Airlines will still be around in five years, and you can take that to the bank. President Trump is gathering the tax-payer money required for a massive bailout package as we speak, but there are still unknowns around how much is actually needed. Capital-intensive companies with large amounts of fixed costs will suffer the most from the outbreak of coronavirus. Industrial orders have all-but frozen, and consumers are locked up in quarantine. Boeing, for example, might need a $60 billion all on its own. The public won’t take kindly to every aid distribution this year, and neither might investors.
2. Best Buy (#bestbuy)
Unprecedented new rules for shopping at Best Buy may throw its stock price into further uncharted territory, the retailer reducing store hours and urging stockpilers to shop online. “You will be paired with a dedicated ‘Blue Shirt advisor’ who will help you find what you need quickly while observing safe social distancing guidelines,” says the firm’s website. Investor’s first point of concern, however, will be supply chains, and whether they can cope with surges of demand in spite of shocks to trade around the world.