Tale of the Tape
Good evening everyone and welcome to the Monday Rip.
So much humbug this morning about how market breadth has been deteriorating even as indices are making new highs with fewer and fewer larger names responsible for the majority of the gains.
Stocks couldn’t care less about your stinking breadth (at least today) as we rallied again and more broadly to boot. The S&P 500 rose 1%.
Dow and Russell outperformed, while Nasdaq paused a bit so technicians got more of the balance the lack of which they’ve been bemoaning.
The Three Stooges, Energy, Financials, and Industrials, led the way while Tech, Real Estate, and Health Care lagged.
Of course, these three particular leading sectors are Larry, Moe and Curly so don’t get all whoo whoo whoo whoo.
Crazy but you got stocks like Boeing (+6.4%), Simon Property (+6.15%), GM (+6.11%), and Capital One (5.59%) leading the action. How often do we get to say that?
Even retail stocks like Kohls and Gap caught a bid up 7.9% and 7.5% respectively.
Airlines and Cruise Lines rallied too which is its own slapstick comedy…
In news and noise, TikTok is suing the US Government which is so 2020 (See more below) while Microsoft jumped to Fortnite’s side in Epic’s clash with Apple.
Here’s your closing prices on the major equity indices:
Peter Thiel’s Driverless SPAC
So far this year Nikola Motors, Workhorse, and Lordstown have all gone public via Special Purpose Acquisition Company (SPAC). It’s time to add Luminar to that list.
Luminar Technologies, a driverless car startup backed by Peter Thiel, will go public following a $3.4B merger with Gores Metropoulos Inc.
The company uses lasers to guide vehicles, which feels like the future.
Here’s what 25-year old CEO, Austin Russell had to say,
Luminar is well-positioned to dominate the autonomous landscape.
Love this blunt young leader!
Unlike other SPACs… this one has real customers. Volvo plans to use Luminar’s technology starting in 2022. Yowsa…
Volvo to use Luminar’s lidar in production vehicles to unlock automated driving on highways
Tik Tok Lawsuit
Tik Tok sued the US Government on grounds that the Trump administration deprived the company of due process.
Here’s what Tik Tok said regarding the lawsuit:
The Administration failed to follow due process and act in good faith, neither providing evidence that TikTok was an actual threat, nor justification for its punitive actions.
Read Tik Tok’s full post here.
We had news from multiple companies looking to go public.
We’ll start with DoorDash.
The food delivery start-up plans a traditional IPO later this year.
As of last June, DoorDash is valued at ~$16B.
Also, Video Game developer, Unity Software filed its IPO today.
In its filing the company reported 40% revenue growth so far in 2020.
Gaming stocks have had a strong year. Vaneck Vectors Video Gaming and ESports ETF is up 58% YTD.
Will Unity see similar performance? Place your bets…
Here’s Bloomberg with more.
Floating Apple Store
Nobody asked for it but we still got it.
Apple will open its first floating store in Singapore.
Here’s The Verge with more.
Be sure to know when your stocks report earnings. Here’s the full earnings calendar.
Links That Don’t Suck
🗽 Jerry Seinfeld: So You Think New York Is ‘Dead’
🔥 Bay Area braces for more lightning amid massive wildfires
🚨 NASA Researcher Arrested for False Statements and Wire Fraud in Relation to China’s Talents Program
🏝 Bali Will Remain Closed To Tourism For The Rest of 2020
🇲🇽 Foxconn, other Asian firms consider Mexico factories as China risks grow
💰 ‘The Big Short 2.0’: How Hedge Funds Profited Off the Pain of Malls
📈 TikTok reveals US, global user growth numbers for first time