2020-6-12 17:48 |
Coinspeaker
Amazon (AMZN) Stock Up Nearly 1%, Dow Futures Down Over 800 Points
Amazon.com Inc (NASDAQ: AMZN) stock dipped 2.13% in the pre-market to trade at $2,591, having closed yesterday at $2,647.45. However, at the time of writing as the market opened, Amazon stock is 0.77% up, meanwhile, the Dow Jones Industrial Average futures plummeted over 800 points after the market opened. This comes as a possible second wave of coronavirus infection may arise in the United States attempting to reopen.
Now the Dow futures are down 840 points, 3.10%, at 26,168.46 points.
Almost all of the index components except Walmart Inc (NYSE: WMT) were down at the beginning of the day, as investors rush to liquidate their shares in the company. This comes as the United States reached 2 million confirmed coronavirus cases with 115,163 confirmed fatalities and 808,556 already recovered.
The conflict between reopening the market and prioritizing peoples’ health is putting the Wall Street hostage as the uncertainty level increases with time. Besides, the level of unemployment and jobless claims are higher than pre-COVID-19 due to businesses stalling as a result of the shutdown.
In the last week, 1.6 million Americans filed for jobless claims, bringing the total unemployed to 20.9 million. The volatility is anticipated to continue in most traditional stocks as it spills over in the crypto market, which has seen the top digital assets shed around 3% each.
Amazon Shares on a Good Vantage Point to Continue RisingAmazon shares have been dubbed as COVID kingpin. While Dow is down, Amazon shares are up nearly 1% to trade around $2,667.82 at the time of writing after falling in the pre-market. However, the fall might not be sustained as the company tends to thrive with the worsening of the coronavirus state.
According to MarketWatch data, Amazon shares have added 40% in the past one year, 42% year-to-date, 56% in the past three months, 9.81% in the last month and around 7% in the past five days. This makes the shares a strong buy, as the level of uncertainty around coronavirus rises.
Tough Times AheadTo make matters worse, the number of coronavirus infections might continue rising with the protests taking place in several U.S. cities. With the presidential elections approaching fast, the Trump administration is seeking an agenda to sell to the electorates, putting in mind his best card on employment has been squashed.
The other possible play card might be the stimulus package meant to offset the harsh economic condition. However, some political and economic analysts disagree with the move as the federal government is merely printing cash out of thin air, purporting it can solve issues with money without creating goods and services.
If the second coronavirus wave catches momentum, it might spell doom to several businesses as they might never recover after that. However, if it is tamed soon enough and a possible vaccine or cure is approved as soon as possible, it will be a relief to the whole American economy.
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Amazon (AMZN) Stock Up Nearly 1%, Dow Futures Down Over 800 Points
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