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Sept. 14, 2020, 12:08 p.m. EDT

This Week's Highlights

Sep 14, 2020 (IAM Newswire via COMTEX) -- Last week was second straight weekly drop following all-time highs reached during the first September days. Both the Dow Jones Industrial Average and the S&P 500 shed more than 2%. Even the tech-heavy NASDAQ had its worst week since March as it fell 4.1% week to date. Even Big Tech tanked. Facebook (NAS:FB) and Amazon (NAS:AMZN) each lost more than 5%. Apple (NAS:AAPL) and Netflix (NAS:NFLX) slid even more than 6%. Although less, Alphabet (NAS:GOOG) and Microsoft (NAS:MSFT) were both down more than 4% week to date. But the biggest drop was by Tesla (NAS:TSLA) whose stuck plunged 10.9% as not only the company was not included in the S&P but was hit with news that General Motors (NYS:GM) bought an 11 percent stake in Nikola (NAS:NKLA) , with this $2 billion-worth investment being all Nikola's Badger needs to challenge Tesla's Cybertruck. However, just shortly after the announcement, Nikola has been accused for intricate fraud, so its stock has now lost a quarter of its market value after this announcement on Thursday. The company claims the accusations are false and misleading. It will be cooperating with SEC to set the record straight.

But aside from all this drama, a few popular stocks will announce earnings results over the next few trading days. Analysts are expecting good news from Adobe Systems (NAS:ADBE) , FedEx (NYS:FDX) , and Progressive (NYS:PGR) .

Just like other software providers that benefited from more people working from home, the digital media tool specialist has enjoyed a great demand boost during the pandemic. During its fiscal Q2 that ended in May, revenues expanded 14%, so another double-digit increase is also expected to be reported on Tuesday with the projected 11%.

Moreover, investors will be keeping an eye on recurring subscription revenue, which recently accounted for over 90% of its total sales base. Another major financial trend to keep an eye on is operating income which increased from $750 million $1 billion in one year. Besides its market-thumping performance in 2020, all eyes are on the company's outlook for the fourth quarter. Adobe has been forecasting a slight growth acceleration quarter to quarter.

Also on Tuesday, investors will be looking for some good news from the package delivery giant. FedEx shares managed to outperform the market since its last report as soaring residential-delivery demand has managed to offset the dramatic drop in commercial deliveries during the first days of the pandemic. Its rival, UPS (NYS:UPS) has also benefited from the consumer stampede towards e-commerce. Now, the question is where the company has room to raise prices which would be the easiest way to improve operating margins and ensure robust shareholder returns. Both transporters are gearing up for the peak holiday season and the expected annual increase in package volume this year.

On Thursday morning, Progressive’s auto-focused insurance business is expected to have benefited from a sharp drop in driving hours and travel time in the early phase of the pandemic. These unexpected lockdown-related trends contributed to reduced payouts and expenses during the spring. Moreover, during this time, premiums continued to grow. Now, after the July's 10% boost in net premiums, the question is whether there was a reversal of these trends as economic recovery picked up in the quarter that covered August. Declining expenses are not as likely to have persevered, so all hope lies in robust sales growth. It remains to be seen if the company's improving earnings profile is headed to become a dependable dividend provider.

Markets are struggling in efforts to find an equilibrium. By the looks of it, near future will be shaped by uncertainties that is bound to result in more struggle. Despite its glory pandemic days, even tech tanked during the previous two weeks. But, if 2020 can be defined in one sentence, it would be to expect the unexpected. The above stock could be the source of this week's positivity.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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