Diamonds and Dogs
Costco (COST) higher after strong sales over the weekend. Costco is rebounding 6% after dropping 12% last week on the coronavirus. One analyst upgraded the stock today ahead of earnings this week while other analysts are telling stories of Costco selling out of products over the weekend with parking lots at full capacity. An LA Costco manager said they are doing double the normal Christmas business. The Department of Health has said the mask-hoarding by consumers can be counterproductive causing a shortage, affecting clinics and hospitals where the masks are really needed.
Coronavirus hitting the travel industry hard. Airlines and cruise ships are cancelling more and more flights and cruises due to the spread of the coronavirus. American Airlines (AAL) is down 6% today and down 40% in the last two weeks. Carnival (CCL) is down 5% today, down 25% in the last two weeks and down 50% in the last year. Business will remain tough for these industries for months to come, but a lot of the bad news is getting priced in.