Stock Market Update: Earnings Reports, Coronavirus Cases, and Advertising Shifts

Strategic Insights -

The stock market is facing a mixture of concerns and developments on Monday, July 20. Investors are turning their attention to a flurry of earnings reports, including those from IBM and Halliburton, while the situation with the coronavirus pandemic worsens, with the number of confirmed cases reaching 14,508,892 globally and 3,773,260 in the US. Meanwhile, Disney has slashed its ad spending on Facebook and Instagram, joining a growing list of major advertisers boycotting the platforms. EBay is also nearing a deal to sell its classified-ads business to Norway's Adevinta.

Key Takeaways:

  • Stock futures dipped on Monday as Wall Street turned its attention to a flurry of earnings reports, with contracts linked to the Dow Jones Industrial Average falling 43 points, futures for the S&P 500 declining 6 points, and Nasdaq futures down 19 points.
  • The Dow gained 2.3% last week, the S&P 500 rose 1.3%, and the Nasdaq declined 1.1% as concerns remain over the health of the US economy amid the pandemic.
  • International Business Machines (IBM) and Halliburton (HAL) are scheduled to report earnings on Monday, with other major companies like Microsoft (MSFT), Tesla (TSLA), and Coca-Cola (KO) releasing reports later in the week.
  • The number of confirmed global cases of the coronavirus has risen to 14,508,892, with deaths increasing to 606,206, and the US topping the list with 3,773,260 cases and 140,534 deaths.
  • Disney has dramatically slashed its advertising spending on Facebook and Instagram, joining a growing list of major advertisers boycotting the platforms due to concerns over hate speech, voter suppression, and misinformation.
  • EBay is nearing a cash-and-stock deal to sell its classified-ads business to Norway's Adevinta, with the unit expected to sell for roughly $8 billion or more.

Statistics:

  • 14,508,892: The number of confirmed global cases of the coronavirus (Source: Johns Hopkins University)
  • 606,206: The number of deaths globally due to the coronavirus (Source: Johns Hopkins University)
  • 3,773,260: The number of confirmed cases in the US (Source: Johns Hopkins University)
  • 140,534: The number of deaths in the US due to the coronavirus (Source: Johns Hopkins University)
  • $8 billion: The estimated sale price of EBay's classified-ads business to Norway's Adevinta (Source: The Wall Street Journal)

Sources:

  • The Wall Street Journal: "Stock futures dip as Wall Street turns eye to earnings reports"
  • Johns Hopkins University: "COVID-19 Cases"
  • The Wall Street Journal: "Disney slashes ad spending on Facebook, Instagram"
  • The Wall Street Journal: "EBay nears deal to sell classified-ads business"