Market Shows Optimism on Recovery

The fear index declined as investors hope for an accelerated economic recovery.
Belinda ZhouMay 21,2020,06:55

States in the U.S. are stepping up reopening and the new cases confirmed each day dropped to 20 thousand, which cheered up stocks on Wednesday with blue-chip benchmarks up.

Gainers

Renren Inc. (NYSE: RENN), which sells used automobiles and related products in China, gained over 81% on Wednesday. The company’s trading volume hit 3,452,618, while its average volume is nearly 50,000.

Shares of Cheetah Mobile Inc. (NYSE: CMCM) skyrocketed nearly 47% Wednesday on the news of it approving a cash dividend and selling its remaining stake in Bytedance Ltd. The deal will also add around $130 million in cash inflow to Cheetah's balance sheet. 

Chinese manufacturer of ceramic tiles China Ceramics Co., Ltd. (Nasdaq: CCCL) jumped 39% on Wednesday as the company turned profitable and announced $20.8 million for its second half-year revenue in 2019.

Futu Holdings Ltd. (Nasdaq: FUTU) gained 7% on Wednesday, closing at $15.16 per share. The Hong Kong-based digitized brokerage and wealth management platform announced its doubled revenue of $63.3 million on May 14.

Fang Holdings Ltd. (NYSE: SFUN) gained 8% to reach $1 per share, which is the minimum bid price set by the exchanges.

Autohome Inc. (NYSE: ATHM) gained 8% to reach $82.61 per share. The Beijing-based company operates as an online destination for automobile consumers in China.

JOYY Inc. (Nasdaq: YY) gained 4% and its peer HUYA Inc. (NYSE: HUYA) jumped 2%. Both of them operate game live streaming platforms in China.

Losers

One of the big news on Wednesday is that Luckin Coffee stock (Nasdaq: LK) is on the move again after its halt since April 7. Shares in Luckin plummeted 36%, closing at $2.82 per share.

Clinical stage biopharmaceutical company I-Mab (Nasdaq: IMAB) lost 16% to $22.70 per share.

Online K-12 after-school tutoring agency GSX Techedu Inc. (NYSE: GSX) lost 10% to $30.58 per share.

Phoenix Tree Holdings Ltd. (NYSE: DNK) dropped to $9.40 per share, down 8%. The Beijing-based company leases apartments from property owners and rents them to residents and corporate clients in China.

Shares gained in NetEase, Inc. (Nasdaq: NTES) and its intelligent learning arm Youdao, Inc. (NYSE: DAO) declined 1% and 6% despite they announced strong revenue growth of 18% and 140% year-over-year.

Browsers developer Opera Ltd. (Nasdaq: OPRA) reported better-than-expected revenue growth on Wednesday, but its stock price fell over 3% on the loss.

Bilibili Inc. (Nasdaq: BILI) lost 7% to $32.70 per share. The Shanghai-based online entertainment gained 5% Tuesday after the company announced a 69% year-over-year revenue increase.

Momo Inc. (Nasdaq: MOMO) lost 5% on Wednesday.

Indices

The S&P 500 added about 49 points or 1.67%, the blue-chip benchmark of the Dow Jones Industrial Average gained 369 points or 1.52%.

The Russell 2000 index of small-capitalization companies gained 3% and the tech stocks-biased the Nasdaq Composite rose 2.08%.

The Hang Seng Index in Hong Kong was at 24,340, up 0.05%. The Shanghai Composite lost 0.51% to 2,884 and the Shenzhen Composite lost 0.94% to 10,948.

The fear Index VIX fell 8% and oil prices rose 5% for crude oil WTI front month futures.

Bitcoin was trading at $9584, gaining over $4,000 from its recent low of $4904 on March 16.






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