The market recovered from last week’s negative sentiment without any major positive news. — More on that in the “Overall Market” section.
Beyond the overall market, resuming dividend payout made investors of one REIT quite happy, and work-from-home (WFH) stocks took a breather for a day. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, can the stock market predict the election’s results? — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
- U.S. markets: All three induced started the week in the green. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price is hovering slightly higher than $9,000 per coin.
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Green Is Back
Investors went back to their giddy ways, and the market started and finished the first day of the week in the green. The Industrial, Energy, and Utilities sectors drove the market’s movement on Monday, while every other sector also finished the day in the green.
Dividends Are Back
So, what happened?
Shares of Simon Property Group (Ticker: SPG) were up more than 17% on Monday. We have discussed this real estate income trust (REIT) in the past. It is the second-largest REIT in the United States. It’s no surprise that the stock was hit significantly due to the COVID-19 pandemic and the shift to work-from-home living across the world. The fear of drastic change in the way people live and work spooked investors away from real estate income trusts. Similar to most REITs, the company had stopped its dividend payment, and just announced resuming it at 50%. Investors were already expecting a 50% dividend-cut. The return to dividend payments gave investors the confidence that the company is on solid footing despite the COVID-19 impact.
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Taking A Breather
So, what happened?
Shares of several work-from-home (WFH) stocks took a breather on Monday. Zoom Video (Ticker: ZM), Twilio (Ticker: TWLO), Fastly (Ticker: FSLY), and DocuSign (Ticker: DOCU) were down between 3% to 10% on Monday. The surge in COVID-19 cases in the U.S. has given investors a pause. They are taking their feet off the pedal and locking their gains, perhaps in anticipation of a market decline.
Can The Stock Market Predict The Election Results?
So what happened?
Typically, we do not talk about politics here, and we don’t intend to do so today. However, we’ve read about an interesting observation with regards to the correlation between the stock market’s return in the three months leading to an election and the result of the election in the United States since 1984. How crazy is that, and maybe more importantly, can the market keep it’s prediction skill this year? We shall watch and observe quite curiously.
(Source: Business Insider)
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Source: Trade Stocks