The bulls continue to add to their momentum, with another rally in the stock market today.
While the S&P 500 finished off the session highs thanks to some commentary from Federal Reserve Vice Chair Richard Clarida, the market is looking to erase last Friday’s bruising session. Remember, the index lost 2.8% to close the week. With mega-cap tech earnings out of the way, investors are turning their attention to a different cohort of reports.
Where’s the Beef?
The novel coronavirus outbreak is wreaking havoc on the meat industry and its supply chain. Reportedly, roughly one-fifth of Wendy’s (NYSE:WEN) U.S. restaurants are out of beef. On a different note, Shake Shake (NYSE:SHAK) stated that it hasn’t had any beef shortages yet, but it does see beef prices climbing significantly.
Despite Tyson Foods (NYSE:TSN) taking it on the chin on Monday after disappointing earnings, wholesale beef prices continue to climb. They have now risen for 18 straight sessions, doubling in that span.
Finally, Costco Wholesale (NASDAQ:COST) announced that it will be limiting customers to three packages of meat each. This news follows Kroger’s (NYSE:KR) announcement that it has “limited inventory on various items.” That comment was made on Friday, although we’ve yet to hear anything from Walmart (NYSE:WMT).
In a pivot away from beef to fake meat, Beyond Meat (NASDAQ:BYND) will report earnings on Tuesday after the close. After a big rally from the lows — up about 100% — investors will be anxious to see if BYND can continue its run.
Movers in the Stock Market Today
As the pandemic continues to beat down the cruise line industry, Norwegian Cruise Line (NYSE:NCLH) warns of “substantial ‘going concern’ doubt.” Further, the company expects a loss in both its first quarter and the full year. With cash flow and revenue drying up virtually overnight, liquidity has been a concern among cruise operators.
Additionally, Norwegian also announced that private equity firm L Catterton invested $400 million in one of its subsidiaries, NCL Corporations.
Shares were down 22.6% in the stock market today.
Uber and Lyft (NASDAQ:LYFT) are in the hot seat. California Attorney General Xavier Becerra is suing the companies for misclassifying their drivers as contractors. If the companies are found guilty, they could have to back pay California employees, as well as face some pretty big fines. Joining in the lawsuit are city attorneys from Los Angeles, San Diego and San Francisco.
Separately, Uber will reportedly make a layoff decision in the next two weeks.
Giddy up? Ferrari (NYSE:RACE) shares burst higher on Monday, climbing more than 6% at one point on better-than-expected earnings. That allowed it to close with a market capitalization of $39.1 billion, edging out the Big Three.
Ford (NYSE:F), Fiat Chrysler (NYSE:FCAU) and General Motors (NYSE:GM) command market caps of $19.2 billion, $13 billion and $29.3 billion, respectively. The last of the group — GM — will report earnings on Wednesday morning. Perhaps it will be enough to push out Ferrari.
When it’s versus Tesla (NASDAQ:TSLA) though, it doesn’t matter. The company’s $142 billion market cap tops all four of its peers — combined.