A look back at the US election week

Published by: 06.02.2021 11:06:11

In America, the election week was very successful in terms of stocks, the best week since April. However, the week leading up to the election was touted as the worst week since March, so the index corrected losses from the pre-election week. Adding the pre-election week together with the election week, the US S&P 500 index added just over a percent. However, the benchmark has yet to breach the slightly downward trend line before hitting all-time highs at 3,600.

 

Surprisingly, technology dragged (up 22%), while the sector that suffered the most is LG, the oil and gas sector. 

 

With America being the most moved by the election. The results at Erste were relatively in line with expectations, they did not have a major impact on the exchange rate. Erste generally moves a lot with Western European banks and last week was no exception. 

 

At the net profit level, Komerční banka did not present very strong results. 

In relative terms, it can be seen that KB is more expensive compared to regional banks.

 

Shares that are not as liquid and well known. Fernet had the best performance last week, beating the PX index handsomely. 

 

CEZ shares are trading above their moving averages ahead of the earnings announcement (Tuesday, November 10) . Expectations for CEZ are relatively optimistic, with analysts expecting significantly better year-on-year numbers for the first nine months of the year. The market is speculating about an extraordinary dividend after the sale of assets abroad. 

 

On the other side of the Atlantic, Nikola is a big unknown and generates no revenue. This is a stock that investors would do well to stay away from. 

 

Also, Walt Disney should deliver relatively decent numbers, even though the theme parks are open, but people don't go to them for fear of Covid-19. The Disney+ streaming platform, which has been running for about a year, is growing very interestingly. It currently has 60 million subscribers (Netflix has 200 million subscribers), which is an interesting number. Analytical expectations are positive.

 

McDonald's is seeing declining restaurant traffic due to coronavirus, on the other hand they are substituting the revenue loss decently with drive-in and Uber Eats sales. Even a slight increase is expected.