The markets are headed for a weak start to the day, as all the key indices are in the red pre-market. This follows the announcement by the Fed chairman Jerome Powell that the Federal Reserve had done everything it could to try and hold the economy together.
The announcement by the Fed Chairman was backed by other policymakers who also called for a fiscal stimulus from the government to help rejuvenate the economy. While a stimulus package can help breathe life into the economy, investors are not optimistic that it can happen any time soon. The pessimism is compounded by the fact that COVID-19 cases are not slowing down. COVID-19 deaths in the U.S have hit 200k and counting.
Across the Atlantic, in Europe, some economies are going back into lockdown. Essentially this means that the world is not close to a solution and the economy may take longer to recover. This is weighing heavily on the markets and are likely to impact on stocks in the day and could see most trade-in negative territory. Nonetheless, there is some good news in the market that is pushing up some stocks pre-market.
The governor of California has announced that the State will ban all carbon-emitting vehicles by the year 2035. This announcement has sent renewable energy and EV stocks rocketing pre-market. Besides EV stocks, companies with positive news are rocketing too, as investors chase gains in a sluggish market. Some of the top performers this morning are as below:
Sunworks Inc [NASDAQ: SUNW]
Sunworks Inc is a top performer pre-market and is up by over 500%. This company deals in photovoltaic systems and is based in California. This makes it uniquely positioned to grow its market share as structural changes brought about by this policy drive up the demand for e-mobility. The company also stands to benefit from the fact that the world is increasingly shifting towards renewable energy as the effects of climate change become more apparent.
Just Energy Group [NYSE:JE]
Just Energy Group Inc is a top performer pre-market and is up by over 80%. This follows the company’s announced an update for its closing plan of arrangement. The company stated that it had got approval from the FERC for this transaction that is aimed at recapitalizing the company. This seems to have created lots of excitement in this stock in early morning trading.
The E.W Scripps Company [NASDAQ: SSP]
This stock is a top performer this morning and is up by over 50% pre-market. This follows the company’s announcement that it’s an affiliated company was given the national Emmy award at the National Academy of Television Arts & Sciences.