The equity markets are up this morning driven by the increased optimism that the worst of the COVID-19 pandemic is over. Even before a vaccine is found, the numbers are pointing to a slowdown in new virus cases. This means that if a vaccine is found any time soon, the markets could return to pre-pandemic levels when the economy was strengthening and unemployment numbers were getting lower.
Economic numbers are also pointing to a potential post-COVID-19 recovery. One of the key metrics that is pointing to a potential recovery is consumer data.
Despite the hard economic times, consumer data is pointing towards resilience. As has been the case over the past few months, big tech stocks continue to lead the way in gains. With their market dominance and strong growth during the lockdowns, investors expect that in a post-pandemic economy, these stocks stand to lead the way in growth.
Companies that have shown to be adaptable to the new normal are also gaining exponentially. One such stock is Zoom. The stock has grown its clientele during the pandemic and is on a similar growth trajectory as the likes of Tesla and Apple.
The momentum that these stocks have created is being felt across the markets. This morning, some of the biggest performers ahead of markets opening are:
Shilow Industries Inc [NASDAQ: SHLO]
Shilow Industries Inc is a top performer this morning and is up by 19%. While there is no news around the stock, its price action shows that it is still looking for direction after the August 30th announcement that it had entered into a stock and asset purchase agreement with Grouper Holdings LLC.
Under the deal, Grouper will buy all of the company’s assets for $218 million in cash, in a deal that will be subject to working capital adjustments. To ensure the deal works, Shillow filed for voluntary Chapter 11 bankruptcy that will see it get reorganized under the U.S bankruptcy code.
Lonestar Resources Ltd [NASDAQ: LONE]
Lonestar Resources is another top performer this morning and is up by over 70%. This is largely a price action driven move. As long as the markets open positive and maintain that momentum in the day, this stock could see its value keep growing all through the day.
China HGS Real Estate [NASDAQ: HGHS]
China HGS Real Estate is another top performer this afternoon and is up by over 100%. This is on the basis of the company’s announcement that it will start trading on the NASDAQ on a split-adjusted basis today.