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Weekly Recap: $DPZ, $M and The Airlines

If there was one word to describe the market in the last year, it would be “volatile.” In a time of trade wars, tariffs, the coronavirus’ impact on global trade, IPOs and so much more, only one thing is certain: we’re living through stock history in real time.

To help keep track of all the sea change on Wall Street, we’ve started a weekly roundup of what stocks are seeing the most growth, which are waning, and which are in deep trouble.

The Good:

Dominos

As many industries are stricken by the coronavirus and the fall-out from government mandated closures, certain businesses are thriving. Take, for example, Dominos, which plans to hire some 10,000 workers to facilitate a dramatic rise in delivery and pickup orders. As many other restaurants lay off entire staffs, Dominos is offering an increasingly rare opportunity for service workers: a steady job. As Dominos looks to build on its very successful delivery infrastructure—some 55% of orders are already delivery—the pizza giant is seeing a raise in stocks. As the rest of the market saw its worst week since the 2008 crisis, Dominos was up 8%. With more than two dozen states ordering the shuttering of dine-in restaurants, Dominos is gearing up to see an increase in orders.


The Bad:

Macy’s

Things for the retail giant have just gone from bad to worse. As the coronavirus pandemic rages on, Macy’s has announced it has accessed its $1.5 billion revolving credit facility. It has also taken the measure of withdrawing its 2020 sales and earning outlook. This comes after the announcement that Macy’s would close all of its stores, including Bloomingdales and Bluemercury, until at least the end of March. Despite hitting its February numbers, Macy’s CEO attested that the retail landscape has recently “deteriorated rapidly.


The Ugly:

The Airlines

Every major American airline is facing serious hits right now despite a potential stimulus package from the Federal government. United warned that, should the package not arrive soon, the airline may begin rounds of layoffs. The airline has already frozen hiring and is asking employees to take unpaid leave. It’s seen a 60% schedule reduction since the advent of the coronavirus. American Airline’s CEO, Doug Parker, said the impact of the coronavirus on the airline industry is more extreme than the fallout from 9/11. The current proposed stimulus of $25 billion would allow US airlines to continue for about 6 months, according to Parker. And Delta warned of a dire second quarter revenue report, dropping some 80% or $10 billion. Despite a variety of loans and other cash-generating measures, Delta says it is losing $50 million a day during the crisis. With May’s schedule looking even leaner than April, Delta is also threatening waves of layoffs.

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