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Atlanta Braves Sputter in Stock Market Amid a March Toward World Series

Atlanta Braves Sputter in Stock Market Amid a March Toward World Series

(Bloomberg) — The Atlanta Braves are on a big winning streak. But the company that owns the team isn’t faring as well in the stock market as the baseball club is on the field.

With the global pandemic necessitating a shortened baseball season that saw fans outlawed from attending games in person, shares of Liberty Media Corp.’s baseball assets, commonly known as Liberty Braves, remain about 27% lower than their pre-pandemic high. Second-quarter revenue fell by 95% due to the loss of games and the restriction on fans.

Still a group of investors, spurred on by the recent sale of the New York Mets and the spread of legalized sports gambling, see the potential for a windfall profit.



Liberty Braves shares have yet to recover from pandemic plummet


© Bloomberg
Liberty Braves shares have yet to recover from pandemic plummet

Investors like Hawk Ridge Capital Management and Shapiro Capital Management were lapping up shares even while the fate of the baseball season was still up in the air.

“We don’t think there’s any permanent impairment to the value of sports franchises,” said Hawk Ridge founder David Brown. “That view is bolstered by the recent transaction with the Mets and the Red Sox rumor.”

The Mets are set to be sold to hedge fund titan Steve Cohen in a deal that values the franchise at a record $2.42 billion. Fenway Sports Group, which owns the Boston Red Sox, is reported to be in talks with RedBall Acquisition Corp. to go public through a merger that would value its holdings, which also include Liverpool Football Club, at a valuation of $8 billion, including debt.

Brown also cited the uptick in sports gambling and the opportunity for the Braves to strike a more lucrative television deal once their current agreement with Sinclair Broadcasting ends in 2027 as reasons for buying the stock.

Hawk

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The stock market is sending signals that a Biden-led blue wave is getting less certain, says one Wall Street strategist

The stock market is sending signals that a Biden-led blue wave is getting less certain, says one Wall Street strategist

trump biden


  • While the polls suggest a blue wave victory is in reach for Democrats this November, the stock market isn’t so sure, according to a note from Evercore ISI.
  • Wall Street strategists have been forecasting that a blue wave would likely be positive for stocks on hopes of a large stimulus deal shortly after the election, which would help spur a surge in value and cyclical stocks.
  • But this week’s rotation out of value and into tech suggests that chances of a blue wave in November are less likely, according to the note.
  • Visit Business Insider’s homepage for more stories.

Wall Street is increasingly expecting a blue wave victory for Democrats this November after the polls close, which would likely lead to the reflation trade: a surge in cyclical and value stocks at the expense of technology and growth stocks.

But recent trading activity in the stock market suggests odds of a blue wave are less likely, according to a Tuesday note from Evercore ISI. 

Specifically, this week’s rotation out of small cap and value and into large cap and growth could be chalked up to declining odds of a Democratic sweep, according to the note.

The firm pointed to the October surprise in North Carolina’s Senate race between Republican Thom Tillis and Democrat Cal Cunningham as evidence for declining chances of Democrats overtaking the Senate.

“The Democratic ‘dream fiscal program’ odds are lower,” Evercore said as explanation for what is driving the rotation back into tech.

Read more: Jeff James has crushed the market this year thanks to a stock pick that’s soared 1,155%. He shares another bet he expects to deliver similar returns – and lays out 3 additional opportunities in tech.

The firm did concede that other factors could be moving tech stocks, including excitement

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Covid Is Making a Comeback. The Stock Market Is Watching.

Covid Is Making a Comeback. The Stock Market Is Watching.

A medical worker takes a nasal swab sample from a student to test for Covid-19 on October 8 in New York City.


ANGELA WEISS/AFP via Getty Images

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New Covid-19 infections are rising as the weather turns colder—and the stock market is paying attention.

U.S. coronavirus cases reported Tuesday hit more than 46,000, up about 21% from a week ago, while the seven-day average of new infections, which has been rising steadily since the beginning of October, sits at roughly 51,000, up almost 17% from a week ago.

To this point, more than 7.8 million Americans have become infected with Covid-19. About 3.1 million have recovered. Tragically, more than 207,000 have died. America has roughly 4.5 million active cases.

Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, warned Americans about increasing infection rates in the fall, but believes the U.S. can halt the progression. In recent months, he has consistently advocated for wearing a mask, avoiding crowds, staying outside, washing hands and maintaining six feet of social distancing where possible.

The market, however, appears to be betting on vaccines and treatments. On Tuesday, for instance, the

Dow Jones Industrial Average

fell 157.71 points after pauses to

Johnson & Johnson

and

Eli Lilly

trials.

That’s not a huge drop, which suggests that confidence remains high that Covid will be conquered.

Still, it never hurts to wear a mask.

Al Root

*** Just five years ago, Fitbit was one of the hottest companies in tech. Now it’s hoping a sale to Google can save its business and help it compete with Apple. Listen to the latest episode of the

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Stock futures struggle for direction as bank earnings come in mixed

Stock futures struggle for direction as bank earnings come in mixed

Stock futures traded flat to slightly lower Wednesday morning, as a host of major banks released their quarterly results.

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Goldman Sachs (GS) on Wednesday reported third-quarter results that well exceeded consensus estimates, as investment banking and fixed income trading revenue each grew over last year and topped expectations. The trading boost Goldman Sachs and other banks including JPMorgan Chase and Citigroup but it did not extend to Bank of America (BAC), which posted lighter-than-expected trading revenue from stocks and bonds, and a miss on overall revenue compared to estimates. Bank of America also built its credit reserves during the quarter, adding more padding in case of potential customer loan defaults amid the pandemic.

Meanwhile, lackluster prospects for more stimulus and concerns over the timeline for developing a COVID-19 vaccine and treatment weighed on investors. Each of the S&P 500, Dow and Nasdaq declined for the first time in five sessions as of Tuesday’s close.

An impasse among U.S. lawmakers in Washington has kept hopes running low that more virus relief aid will come to fruition before the November election. Senate Majority Leader Mitch McConnell said Tuesday he will have the Senate take up relief legislation after the chamber’s return on Monday, with his narrower proposal set to include funds chiefly targeted to the Paycheck Protection Program. House Speaker Nancy Pelosi, however, has rejected slimmed-down stimulus proposals and deemed them inadequate, and even President Donald Trump said on Tuesday on Twitter to “Go big or go home!!!” for more stimulus.

Meanwhile, a pair of front-runners in the race to develop a COVID-19 vaccine and treatment announced that their respective trials were put on pause over safety concerns. Eli Lilly (LLY) said Tuesday afternoon that enrollment for its COVID-19 treatment would be temporarily halted, less then a day after Johnson

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5 things to know before the stock market opens Wednesday

5 things to know before the stock market opens Wednesday

1. Futures higher after Wall Street ends four-session winning streak



a person standing in front of a building: People walk by the New York Stock Exchange (NYSE) in lower Manhattan on October 5, 2020 in New York City.


© Provided by CNBC
People walk by the New York Stock Exchange (NYSE) in lower Manhattan on October 5, 2020 in New York City.

U.S. stock futures pointed to a higher open Wednesday, one day after the first down session in the past five for the Dow Jones Industrial Average, S&P 500 and Nasdaq, as investors digest more bank earnings and keep watch for any coronavirus stimulus developments out of Washington. Gains on Wednesday would avoid back-to-back losses for the major stock benchmarks, something that has not happened in more than three weeks. Despite Tuesday’s slide, the October gains for the Dow, S&P 500 and Nasdaq are still larger than the losses they experienced in September.

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2. Goldman beats on earnings while BofA and Wells Fargo disappoint

Dow-30 stock Goldman Sachs rose in Wednesday’s premarket trading after the Wall Street firm posted third-quarter earnings and revenue that best estimates. Per-share profit of $9.68 far exceeded analyst expectations of $5.57. Quarterly revenue came in at $10.78 billion.

Bank of America shares fell in the premarket after the lender posted third-quarter results that missed on revenue. The firm said it generated $20.45 billion in total revenue. Profit in the quarter slumped 16% to $4.9 billion, or 51 cents a share, edging out the 49 cent estimate.

Shares of Wells Fargo dropped in the premarket after the bank also reported disappointing earnings for the third quarter as low rates put pressure on net interest income. Wells Fargo earned 42 cents per share on better-than-expected Q3 revenue of $18.86 billion.

3. Walmart spreading out Black Friday sales



a person standing in front of a store: A shopper is seen wearing a mask while shopping at a Walmart store in Bradford, Pennsylvania, July 20, 2020.


© Provided by CNBC
A shopper is seen wearing a mask while shopping at a Walmart store in Bradford, Pennsylvania, July 20, 2020.

Walmart, a

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