Futures are pointing to further losses for the major U.S. stock indices after last week’s big tech sell-off. Nasdaq 100 futures are pointing to a loss of 3.1% which would bring the index into 10% correction territory from last Wednesday’s record high.
It appears that investors are taking profits from the tickers that have benefited the most from the euphoric rise. Focus is shifting to stocks that will gain on America’s reopening.
One such stock to consider is Walt Disney (DIS). DIS shares are still down nearly 9% for the year. It may take some time for a return to business as usual for Disney. Many analysts believe that a return to those levels and beyond is likely in 2020.
This weekend Disney parks operated at normal capacity for the first time since the pandemic forced closure in March. What’s more, Disney’s entry into the direct-to-consumer video market during the previous quarter could push share prices higher through the second half of 2020.
Deutsche Bank recently upgraded Disney to “buy” from “hold.” Noting that Disney had been successful in the “land grab phase,” of direct-to-consumer video streaming offerings and is on its way to becoming a global streaming leader.