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Weekly Recap: $GM, $F, $FCAU, $BZ, $DAL, $AAL, $UAL and $UA

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:

Detroit Auto Manufacturers

Sometimes, it pays to be prepared. After learning their lesson from the last recession, the cabal of Detroit auto manufacturers aren’t looking for a bailout quite yet this time around. Compared to the airline industry, which is plagued with calls for more cash and angst over bankruptcies, the automakers have gone through great lengths over the last decade to balance their sheets and have ways to sustain during times of crisis. Though the coronavirus is hitting auto manufacturing even harder than the recession of 2008 did, the manufacturers have hoarded cash and called on lines of credit to stay afloat. With the Michigan governor giving the go-ahead for auto plants to reopen soon, auto is in a better place than many industries.


The Bad:

Airlines and Oil

Goldman Sachs recently made a big proclamation: jet fuel demand may never fully recover from the coronavirus crisis. As worldwide travel has come to all but a complete standstill, with restriction measures implemented in 187 different countries in an attempt to stave the virus, jet demand is down gravely. Goldman Sachs analysts elaborated by pointing out that oil demand comes from three main sectors: commuter demand, industrial demand and jet demand. While the former two should rebound quickly, jet demand will take a major hit due not to a lack of vacationers, but due to a loss of business flying. As the global business infrastructure interacts with remote-meeting fully for the first time, Goldman Sachs argues that many companies won’t want to go back to around-the-globe flights for meetings. That’s a win for companies like Zoom, but a blow to airlines and oil.


The Ugly:

Under Armour

After sustaining a rise in sales, brand awareness and revenue, Under Armour hit a wall while rivals like Nike continued to climb. Because of this, Under Armour had planned a massive comeback in order to get back into the ring against other athletic and athleisure companies, including Lululemon, Adidas and Nike. Now, due to the coronavirus and the virus’ impact on wholesale retailers, Under Armour is hitting a wall. In the first quarter, of which only part was impacted by the virus, Under Armour saw sales sink 23%, leading to a slip of 5% in stock value. Under Armour plans to cut $325 million in operating costs to offset the impact of the virus. Under Armour shares are down almost 54% on the year.

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