Hertz So Good

Tale of the Tape

Good evening everyone. It’s Friday, so please feel free to drink every time you read Place Your Bets

We drink everytime we write it and we believe there is no better way to usher the weekend than with stupid drinking games and stock market repartee.

Stocks closed higher today, though they faded off a strong start after yesterday’s drubbing. The S&P 500 rose 1.31% but fell 5% for the week. The Small Cap Russell 2K rose 2.3% but fell 8% for the week, stinking the joint as usual.

Real Estate, Financials, and Energy were strongest all up more than 1.5%, while no sector closed down more than 1%.

Airlines rose over 11% which is hilarious as the volatility there continues with gusto. We can’t take our eyes off ‘em.

Lululemon dropped 4.5% after reporting earnings last night. Netflix fell 2.3% and Zoom fell 1% on rotation out of COVID stocks and into Airlines and Cruise Lines. Tesla gave up 3%, after closing at an all time high earlier this week but it’s still over $900. 

Docusign closed at an all-time high. Congrats longs!

Here’s your closing prices on the major equity indices:

S&P 5003,041+1.31%
Nasdaq9,588+1.01%
Russell 20001,387+2.32%
Dow Jones25,605+1.90%

Hertz So Good

Hertz wants to sell $1B in stock and seeks approval from the bankruptcy courts. The stock was up 37% today after already rallying 410% off the 56 cent low. lol

If you were not aware, $HTZ declared bankruptcy so it’s kinda worth zero.

Fancy behavioral economists call this Limits to Arbitrage.

This’ll be the first time a company raises money in the stock market while going through a bankruptcy. 

Everyone might think it’s ridiculous but it’s genius really.

Remember, the year is 2020 and nothing makes sense if you are still looking through a pre-2020 lens.

Last month Crude Oil traded below zero. A global pandemic grips the world. NASCAR banned the confederate flag. The whole world flipped its lid so why should Hertz be different?

If you are still having trouble grasping all this you might try the magic mushrooms. 🍄🍄🍄 

Place your bets…

Faded.

Stocks gapped higher this morning and faded most of the day.

Here’s the intraday performance of the major index ETFs. 

The Qs lagged while the small-caps led. Is this a tell for the week ahead? Place your bets… 

Streak Over

Yesterday, the Airline ETF, $JETS snapped a record streak of 70 straight days where fund flows were positive. 

In the last 70 days $1.2B poured into the ETF. Incredible. 

Yesterday was the first day since February where cash flows were negative. 

Check out this chart from Eric Balchunas.

Patagonia’s CEO Stepped Down 

Patagonia’s long-time CEO, Rose Marcario announced on Wednesday that she would be stepping down as of Today.

Here’s what she had to say in response to her resignation:

We have been planning my succession since late last year and believe now is the right time for the next-generation team to step in to reimagine the business for a bright future. Patagonia is in great hands, and on a path for 100 years of success.

And here’s what Patagonia founder, Yvon Chouinard, said about his former CEO.

Rose has grown our advocacy efforts in ways I could never have imagined. With Rose at the helm, we are leading an overdue revolution in agriculture, challenging this administration’s evil environmental rollbacks, growing a movement to increase voter participation in our elections and raising the bar on building our product in the most responsible manner possible.

Great work, Rose. 👏👏👏

For those interested, here’s the press release.

Real Sports on TV This Weekend

The Charles Schwab Challenge at Colonial in Fort Worth, TX is live this weekend and you can watch it on Network TV. 

This is not Celebrity Pro Am. This is not Australian Rugby. This is not Korean Baseball.

You can watch Saturday starting at 1PM ET on Golf Channel and 3PM on CBS.

Here’s your leaderboard as of 4:15PM ET Friday June 12.

Going into the weekend, we got 7 guys within 3 strokes of the lead. Thank goodness for sports. 🙏

We’ll take Team Speith. Place your bets…

Links That Don’t Suck

📃 How Often Do Stocks Fall?

📃 Ten reasons the “second wave” hasn’t spooked the markets (yet)

📺 2 Chainz Tries a $300 Sleep Mask 

📃 Spies Can Eavesdrop by Watching a Light Bulb’s Vibrations

📃 The Longest Bridges in the World

📺 Pedaling 141 Miles from Vermont to Canada

📃 Why do graduates wear those square hats?

Have a Great Weekend!

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