On today’s episode of Full Court Finance here at Zacks, Ben Rains dives into the continued spread of the coronavirus and its economic impact. We also try to help investors see if the market’s worst days might already be over. Then we breakdown three safe haven-style tech stocks that investors might want to consider buying amid the coronavirus selloff and economic uncertainty.
The coronavirus ended the 11-year bull market at lightspeed. Plus, it only took 22 days for the S&P 500 to fall 30% from its highs, which was the fastest ever recorded. Stocks tumbled again in early trading Monday, but have tried to fight back as Wall Street tries to figure out the Federal Reserve’s latest move.
The Fed on Monday said it would essentially buy unlimited amounts of Treasurys and mortgage-backed securities. This is part of its effort to boost liquidity. Now the question is when will the stimulus package pass, after Senate Democrats on Sunday blocked a $1.3 trillion rescue package.
Meanwhile, more states and cities are rolling out stricter stay-at-home measures in an effort to “flatten the curve.” This has already put a strain on many industries and businesses. And now the question is when will things start to return to normal for the market and the economy?
To help combat some of these market fears, investors might want to consider buying stable tech giants that appear to be solid longer-term holds.
Amazon’s (AMZN - Free Report) case is straight forward since its core e-commerce business and cloud unit seem tailor-made for the current climate. The company also competes against Netflix (NFLX - Free Report) and Disney (DIS - Free Report) in the streaming TV market and it plans to hire 100,000 employees to meet surging demand as people are confined to their homes. Some of AMZN’s other fundamentals are also attractive.
Moving on, Intel (INTC - Free Report) is a stock that investors might want to consider. The chip stock’s dividend yield is solid and it is poised to grow as part of the big-data age, which was highlighted by its neuromorphic computing announcement last week.
We then close with why Microsoft (MSFT - Free Report) stock, which is a Zacks Rank #1 (Strong Buy) right now, might be worth buying for longer-term investors. The diverse tech firm is poised to expand its cloud business and its dividend yield tops Apple (AAPL - Free Report) .
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