[Editor’s Note: This article was updated on April 29, 2020 to correct the spectrum of cloud companies Zoom has relationships with.]
Equities opened with more “oomph” on Tuesday, as stocks gapped higher. However, bears took some control in the stock market today, as tech stocks bit the dust.
The Nasdaq Composite fell almost 1.4% on the day and over 2.5% from its opening highs. Of course, both bulls and bears will have a chance to really make their mark here in the next few days.
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Advanced Micro Devices (NASDAQ:AMD) report on Tuesday after the close. Microsoft (NASDAQ:MSFT) and Facebook (NASDAQ:FB) will dominate the spotlight on Wednesday night, while Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) will report on Thursday.
Remember, these companies represent trillions of dollars in market value and represent a large weighting in the S&P 500 and Nasdaq. These results will set the tone, not just for the next few days, but likely for the next few weeks and possibly the rest of the quarter.
Ford (NYSE:F) is planning to safely start reopening its European auto plants next week. To do so, there will be new protocols in place. Those will include body temperature checks, face masks, shields for some employees, social distancing and daily wellness checks.
Simon Property Group (NYSE:SPG), the largest mall owner in the U.S., is set to reopen 49 of its malls Friday, May 1 through Monday, May 4. There will be new, shortened business hours for operation. The company will also provide free masks, hand sanitizing packets and temperature testing to customers who choose. While those are encouraged but optional to customers, employees will be required to wear masks.
Movers in the Stock Market Today
Elon Musk has some big money coming his way. Tesla (NASDAQ:TSLA) almost has a market capitalization of over $100 billion over a six-month average, with that average currently sitting at about $96 billion. With a current value of $140 billion, it seems inevitable that the six-month average will hit $100 billion. If it does, Musk will be granted the first of 12 tranches of options. That will allow him to buy 1.69 million shares of stock at roughly $350 apiece.
That’s a hefty windfall with shares closing at $769.12 in the stock market today. Hopefully Musk can deliver on earnings tonight, to keep that payday likelihood locked in.
Google is partnering with Electronic Arts (NASDAQ:EA) and adding five games to its cloud-based game platform, Stadia. 2021 will provide a selection of more games, but for now three games are on target to launch before the end of the year. They include: Star Wars Jedi: Fallen Order, FIFA and Madden.
Boeing (NYSE:BA) can’t catch a break, as it’s now facing extended probes of 737 Max production and more legal liability than it originally expected. The reports come just ahead of the company’s earnings report, scheduled for Wednesday before the open.
Let’s see if the company surprises investors with any more negative news, and more importantly, let’s see how the stock responds to it.
Investors can now count Oracle (NYSE:ORCL) as a cloud infrastructure service provider for Zoom Video (NASDAQ:ZM). The company also uses Amazon Web Services too. It’s no wonder Zoom is looking to bolster the backbone of its services, after recently topping 300 million users last week.