On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains takes a look at the continued market volatility surrounding the coronavirus. We also dive into some economic outlooks and company-related news. And the episode closes with a look at why Applied Materials (AMAT - Free Report) is a Zacks Rank #1 (Strong Buy) stock right now.
The Dow fell 13% on Monday. This marked its second-worst day ever and helped it close at its lowest level since May 2017. Monday’s market downturn marked the continuation of not just the coronavirus selloff, but also the volatility, which was on display again Tuesday morning.
The novel coronavirus has caused governments to restrict travel, while large gatherings are canceled and businesses close. Meanwhile, the global economic slowdown and uncertainty caused by the virus has many—including J.P. Morgan Chase (JPM - Free Report) , Goldman Sachs (GS - Free Report) , and other big banks—calling for a rough second quarter.
In company-related news, McDonald's (MCD - Free Report) said that it would close dining rooms at company-owned restaurants in the U.S. and is now calling on its franchisees to do the same. This came after Apple (AAPL - Free Report) , Nike (NKE - Free Report) , and other retail giants over the weekend announced they would close their stores.
In some positive news, Amazon (AMZN - Free Report) said it plans to hire an additional 100,000 employees amid the stay-at-home push. And Tesla (TSLA - Free Report) announced that it delivered its first Model Y SUV.
The episode then closes with a look at why Applied Materials is a Zacks Rank #1 (Strong Buy) stock, within a strong Semiconductor Equipment - Wafer Fabrication industry that includes Advanced Energy Industries, Inc. (AEIS - Free Report) and Lam Research (LRCX - Free Report) .
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