Market Weekly: May 24 – 30 2020


Barron’s Weekend:

The cover story covers the existential threat that small businesses face in the U.S. and the struggle for many to jump through administrative hurdles or get the attention of banks for PPP loans.

The publication notes that Q1 earnings results turned in last week confirmed a trend long in place among U.S. retailers of large, well-capitalized chains with big e-commerce units growing rapidly, while smaller companies are struggling to stay relevant amid the virus pandemic.

Retail giants Walmart, Target, Home Depot and Lowe’s (NYSE:LOW) are all setting themselves up for the longer term with market share grabs, while Urban Outfitters (NASDAQ:URBN) and Kohl’s (NYSE:KSS) are seen getting weaker.

Investors are pointed to look at the recent boom in the convertible bond market, with Columbia Convertible Securities (MUTF:PACIX), Franklin Convertible Securities (MUTF:FISCX), Calamos Convertible & High Income (NASDAQ:CHY), Ellsworth Growth & Income (NYSEMKT:ECF), SPDR Bloomberg Barclays Convertible Securities (NYSEARCA:CWB) and iShares Convertible Bond (BATS:ICVT) all seen as intriguing opportunities.