This fund run by a SAC Capital alum bought restaurant stocks amid the pandemic
Prentice Capital Management was up 6.6% for the first four months of the year, compared to the S&P 500's 9.3% decline and the Russell 2000's 21.1% decline. The HFRX Equity Hedge Index was down 9.4% for the quarter. Q1 2020 hedge fund letters, conferences and more Gross and net exposures In his first-quarter letter to […]
The stock markets in the United States gained driven by speculations that the economy is strong enough to support corporate earnings, and the market correction is over. Bloomberg noted that the S&P 500 was moving towards its longest winning streak this year.
U.S. equities rebounded as companies benefit from the weakness of the dollar, which was caused by the disappointing jobs report. The market pushed aside expectations for interest rate hike by the Federal Reserve due to the weak jobs data.
Michael Purves, chief global strategist at Weeden & Co, told Bloomberg, “Pushing out interest rate hike expectations to next year has been critical. Today is simply a response to oversold conditions.”
On the other hand, Otto Waser, chief investment officer at R&A Research & Asset Management commented, “Those people that wanted to sell have already sold by now, and now the market is coming up a little. Given the current market reaction, the correction seems to be over. The market should stabilize and either rally now or in the first quarter of next year. We’re looking at a very modest pace of rate increases anyway.”
The U.S. equity markets have been trading up and down since the selloff in August amid investors concerns regarding slowing global economic growth and confusion over the Federal Reserve’s statements regarding interest rates.
Investors will now shift their attention to corporate earnings this week to look for signs regarding the health of the global economy and its impact on U.S. companies. Alcoa will kick off the earnings season on October 8.
- Dow Jones Industrial Average (DJIA) – 16, 775.59 (+1.84%)
- S&P 500- 1,986.94 (+1.82%)
- NASDAQ- 4,871.26 (+1.56%)
- Russell 2000- 1140.33 (+2.35%)
- EURO STOXX 50 Price EUR- 3,190.39 (+3.31%)
- FTSE 100 Index- 6,298.92 (+2.76%)
- Deutsche Borse AG German Stock Index DAX- 9,814.79 (+2.74%)
- Nikkei 225- 18,005.49 (+1.58%)
- Hong Kong Hang Seng Index- 21,854.50 (+1.62%)
- Shanghai Shenzhen CSI 300 Index- 3,202.95 (+0.76%)
Stocks in Focus
The stock price of Alcoa climbed more than 9% to $10.41 per share. The company signed a $1 billion agreement with Airbus Group to supply high-tech, multi-material aerospace fastening systems.
Consol Energy gained more than 9% to $10.74 per share. Analysts at Deutsche Bank upgraded their rating on the stock to Hold with a price target of $13 per share. The analysts noted that the company’s growth prospects are primarily dependent on successful asset sales in a crowded market.
The stock value of Twitter increased more than 7% to $28.16 per share. The board of directors of the company appointed Jack Dorsey as permanent CEO and Adam Bain as COO. Mr. Dorsey said his focus is to “build teams that move fast and learn faster,” and “work forward on making the social media easy to understand by anyone in the world.”