We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pre-market futures are way up this morning, following the worst market sell-off since the beginning of the Great Recession in late 2008. Dow futures are currently +851 points, which under any normal circumstance would be incredibly beneficial to the overall market. But as we say repeatedly here of late, we are not living under normal circumstances.
The Dow lost more than 2000 points Monday, the Nasdaq down nearly 625 points and the S&P 500 -225.8, each down well more than 7%. So filling in gaps, covering shorts and extreme bargain hunting are carrying today’s pre-market. This is in no way endorsing that the coronavirus — or oil price war just begun over the weekend between OPEC (Saudi Arabia) and Russia — is on the wane; on the contrary, many analysts expect another down-leg sometime in the near future.
Should we need convincing of this, consider that Norwegian Cruise Lines (NCLH - Free Report) is up 11% at this hour. Carnival (CCL - Free Report) is up 10%. United Air Lines (UAL - Free Report) has gained 6.6% in today’s pre-market and Delta (DAL - Free Report) is +3% — even as it announces this morning it has seen a 25-30% decline in bookings, which is expected to accelerate going forward.
No one expects cruise lines and airlines to gain in near-term bookings, so that should tell you all you need to know about this rebound. Those investors looking to stay long would do better to just not look at their investment statements, as even with an 800+ gain in the Dow, we’ve given back a year’s worth of market gains. This current market is business for short-term players, looking to swoop in on oversold equities before panic subsides.
Going back to our Norwegian Cruise Lines example — and not to pick on them directly; we see this company properly representing the Consumer Discretionary/Leisure Products & Services industry at this stage — shares closed at all-time lows yesterday, at $19 and change. The buyback has brought shares up to $22 per, which remain below its 2013 IPO price.
So take this pre-market bounce with a grain of salt. Along with a vitamin regiment and plenty of soap and water.
With almost unimaginable profit potential, legalized marijuana is skyrocketing from $9 billion in 2017 to an expected $32 billion in 2020 to a possible $146 billion by 2025. Not since the Repeal of Prohibition has there been such a release of pent-up demand. See Zacks’ recommended buys >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bounce-Back Brings Cruise Lines Up Double Digits
Tuesday, March 10, 2020
Pre-market futures are way up this morning, following the worst market sell-off since the beginning of the Great Recession in late 2008. Dow futures are currently +851 points, which under any normal circumstance would be incredibly beneficial to the overall market. But as we say repeatedly here of late, we are not living under normal circumstances.
The Dow lost more than 2000 points Monday, the Nasdaq down nearly 625 points and the S&P 500 -225.8, each down well more than 7%. So filling in gaps, covering shorts and extreme bargain hunting are carrying today’s pre-market. This is in no way endorsing that the coronavirus — or oil price war just begun over the weekend between OPEC (Saudi Arabia) and Russia — is on the wane; on the contrary, many analysts expect another down-leg sometime in the near future.
Should we need convincing of this, consider that Norwegian Cruise Lines (NCLH - Free Report) is up 11% at this hour. Carnival (CCL - Free Report) is up 10%. United Air Lines (UAL - Free Report) has gained 6.6% in today’s pre-market and Delta (DAL - Free Report) is +3% — even as it announces this morning it has seen a 25-30% decline in bookings, which is expected to accelerate going forward.
No one expects cruise lines and airlines to gain in near-term bookings, so that should tell you all you need to know about this rebound. Those investors looking to stay long would do better to just not look at their investment statements, as even with an 800+ gain in the Dow, we’ve given back a year’s worth of market gains. This current market is business for short-term players, looking to swoop in on oversold equities before panic subsides.
Going back to our Norwegian Cruise Lines example — and not to pick on them directly; we see this company properly representing the Consumer Discretionary/Leisure Products & Services industry at this stage — shares closed at all-time lows yesterday, at $19 and change. The buyback has brought shares up to $22 per, which remain below its 2013 IPO price.
So take this pre-market bounce with a grain of salt. Along with a vitamin regiment and plenty of soap and water.
Mark Vickery
Senior Editor
Questions or comments about this article and/or its author? Click here>>
Zacks Responds to Pot Stock "Gold Rush"
With almost unimaginable profit potential, legalized marijuana is skyrocketing from $9 billion in 2017 to an expected $32 billion in 2020 to a possible $146 billion by 2025. Not since the Repeal of Prohibition has there been such a release of pent-up demand. See Zacks’ recommended buys >>