Stock market

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Don't panic about the stock market

Don't panic: A primer on markets, recessions and financial crises

Feb 29, 2020
Private equity returns fell behind stocks over the past decade

Private equity markets itself as beating public markets over the long term.

Feb 24, 2020
More firms throw weight behind new Wall-Street backed stock exchange

MEMX says it plans to launch in July.

Feb 20, 2020
The stock of the decade: Netflix

Netflix is the S&P 500's best performer of the decade.

Dec 28, 2019

All Stock market stories

Banks are underperforming during the stock market's coronavirus recovery

Data: FactSet; Chart: Axios Visuals

The S&P 500 hit a curious milestone earlier this month: Less than 10% of its market capitalization was made up of financial services companies. That ratio was as high as 22% in 2007, before the 2008 financial crisis.

Why it matters: This is not a financial crisis. America's banks are well capitalized, the Fed has restored liquidity to the markets, and trust in the financial sector is hitting new highs. Still, banks are severely underperforming the stock-market recovery.

The stock market's speculative frenzy

Illustration: Sarah Grillo/Axios

Never has the stock market seen so much gambling. Volume is at record highs, with individual stocks and the market as a whole feeling almost manic. More people than ever are betting more money than ever on which way stocks will move, in a frenzy that feels more like a casino than a safe place for long-term capital appreciation.

Why it matters: Legendary value investor Ben Graham said that in the short term, the market is a voting machine, but that in the long term it's a weighing machine. Right now there is no shortage of votes, but few people believe that the weight readings are remotely reliable.

Podcast: An economic cold war with China

Both Congress and the Nasdaq this week made it harder for Chinese companies to list their stocks in the U.S. Dan digs in with Alexandra Stevenson, a Hong Kong-based business reporter with the New York Times.

Go deeper: Luckin Coffee faces delisting after admitting fraud

May 21, 2020 - Economy & Business

Luckin Coffee faces Nasdaq delisting following alleged fraud

Illustration: Sarah Grillo/Axios

Luckin Coffee (Nasdaq: LK), the Chinese coffee shop chain that recently fired its CEO and COO for falsifying sales data, yesterday received a delisting notice from Nasdaq. One source says that Luckin didn't sufficiently answer questions Nasdaq had asked.

Why it matters: This comes against the backdrop of Nasdaq tightening its listing standards for closely held companies and those that aren't sufficiently transparent about their accounting. It didn't explicitly cite Chinese issuers like Luckin, but its targets were clear.

Some retail traders are taking cues from TV ads

New research shows retail investors are also moved to make stock purchases by ads they see on TV.

What it means: In a new paper, researchers at Cornell and Hong Kong University of Science and Technology find a "predictable, recurring, and robust pattern between investor exposure to television commercials and subsequent retail stock trading."

Moderna has a huge day after igniting hope for coronavirus cure

Illustration: Sarah Grillo/Axios

Biotech company Moderna had a day for the ages on Monday and finished by announcing the issue of $1.34 billion of new stock at a hefty price.

What happened: A small number of healthy patients given the first doses of Moderna's coronavirus vaccine appeared to have generated antibody responses to the virus, according to early phase one trial data released by the company Monday.

Car marketplace Vroom files for IPO

Photo: Julian Stratenschulte/picture alliance via Getty Image

Vroom, a New York City-based online marketplace for used cars, has filed to go public on the Nasdaq under the ticket symbol "VRM."

Why it matters: Vroom's move comes at a time when many other tech companies are holding off on their big public market debut.

Stock market has its best day since early April

The outside of the New York Stock Exchange. Photo: Spencer Platt/Getty Images

The stock market closed up more than 3% on Monday — the biggest rally in over a month — amid news that Moderna's phase one coronavirus vaccine trial showed a positive first step.

Why it matters: The stock market has rebounded in recent weeks in the face of the coronavirus crisis, which has pushed the U.S. economy into the worst downturn since the Great Depression. Long-time investors have warned about stocks' high valuations based on optimism about a vaccine or cure, as well as the economy's ability to fully rebound.

Website builder Wix sees coronavirus-driven stock boom

Data: Investing.com; Chart: Axios Visuals

Website builder Wix saw its stock price jump by nearly 7% on Friday after reporting strong earnings, showing that the coronavirus pandemic is increasing demand for its products.

Why it matters: The earnings report shows you can add website building tools to the list of sectors that are seeing benefits from the virus and could indicate a new area of long-term growth.

Fitch expects record ratings downgrades in 2020

Illustration: Rebecca Zisser/Axios

Fitch is expecting to cut the ratings on a record high number of companies this year as the pace of downgrades has "dramatically increased, owing to the economic crisis caused by the coronavirus pandemic," analysts note in a recent report.

The state of play: After just 58 downgrades in the first 10 weeks of 2020, there have been an additional 347 corporate and financial institution issuers downgraded for a total of 405 through the end of April.

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