NYSE Ends with Upward Trend as Economic Indicators Boost Investor Sentiment; Roadtown Motors Plunges with Bankruptcy Filing

On June 27th, the New York Stock Exchange witnessed a positive trend as the three major indexes closed on a high note. The S&P 500 and Nasdaq showed significant gains of 1.2% and 1.7% respectively, displaying a strong rebound. This surge in the market can be attributed to positive economic indicators and improved investor sentiment.

The release of economic data, including strong new home sales and durable goods orders for May, along with a higher-than-expected CB Consumer Confidence Index for June, alleviated concerns about an impending economic downturn. Ryan Detrick, the chief market strategist at the Carson Group, a leading financial consulting firm, emphasized the strength of the economy and downplayed fears of a recession.

Taking a look at the stock market movements for the day, Roadtown Motors (RIDE) experienced a significant setback, plunging nearly 17% to reach a new 52-week low. The company filed for bankruptcy protection (Chapter 11) in a Delaware court due to financial difficulties. Roadtown also filed a lawsuit against Foxconn in Taiwan, accusing them of breaching an investment contract worth up to $170 million. Foxconn had invested $52.7 million in the first round but failed to meet their commitment to further invest $170 million, leading to the current situation.

On the other hand, shares of Generak Holdings (GNRC) witnessed a promising surge of almost 9%. This growth can be attributed to tangible sales growth, primarily driven by an increased demand for emergency generators, particularly in Texas. With extreme heat waves causing concerns about the stability of the main power grid in the United States, the need for backup power solutions has escalated.

Delta Airlines (DAL), one of the four prominent US airlines, experienced a notable boost in their stock price. It reached a new 52-week high, rising by nearly 7%. The airline presented a strong earnings forecast during an investor day event. The limited supply of air travel, delays in new aircraft deliveries, and pilot shortages have led to increasing air ticket prices and strengthened the pricing power of the industry. Additionally, a 30% drop in jet fuel prices compared to last year has bolstered profitability for Delta Airlines.

Roblox (RBLX), the operator of an online game platform based on the metaverse, witnessed a 6.7% hike in its shares. This increase can be attributed to positive evaluations from Bank of America, which designated Roblox as a ‘leader’ in the metaverse market. The platform has managed to attract developers, brands, and sellers, establishing a virtuous cycle of growth and securing a strong foundation for future expansion.

In other important stock news, Volvo has agreed to use Tesla’s (TSLA) charging network (supercharger) from 2025, Costco (COST) has announced plans to strengthen their crackdown on card sharing, requiring members to present identification when using their membership card, and Walgreens Boots (WBA) has revised its annual EPS guidance from $4.45 to $4.65 to $4.0 to $4.05.

[이데일리 유재희 기자] On the 27th (local time), the three major indexes of the New York Stock Exchange ended with an upward trend. In particular, the S&P 500 and Nasdaq rose by 1.2% and 1.7%, respectively, and managed a sharp rebound.

Economic indicators had a positive impact on investor sentiment. This is because concerns about an economic downturn eased as new home sales and durable goods orders for May and the CB Consumer Confidence Index for June exceeded market expectations as well as the previous month, released on the day. Ryan Detrick, chief market strategist at the Carson Group, a financial consulting firm, said, “This year, we’ve been hearing constantly that an economic recession is imminent, but the truth is that the economy is strong.” I’ll see,” he said.

The flow of stocks in question for the day is as follows.

Roadtown Motors (RIDE, 2.3, -16.82%)

American electric truck company Roadtown Motors plunged nearly 17% to a new 52-week low. This is the result of the news about the bankruptcy filing.

On this day, Roadtown announced that it has filed for bankruptcy protection (Chapter 11) in Delaware court citing financial difficulties. We intend to pursue sales. At the same time, he filed a lawsuit against Foxconn in Taiwan. This is because it has provided cause for filing for bankruptcy by failing to fulfill an investment contract worth up to $170 million.

Foxconn decided to invest an additional $170 million when it bought the Ohio factory in Roadtown last year. Through this, it is a way to secure a share of 19.3% in Road Town. However, Foxconn is known to have stopped investing after investing 52.7 million dollars in the first round.

Foxconn said, “The condition of the contract was to maintain the stock price above $1, but the contract was breached as Roadtown’s stock traded below $1 for more than 30 trading days.”

Shares of Generak Holdings (GNRC, 142.53, 8.79%) increased by almost 9%. We attribute this to the fact that sales growth is tangible.

Recently, while abnormal weather phenomena continue around the world, concerns about the stability of the main power grid are spreading in the United States due to extreme heat waves.

As a result, the demand for emergency generators is increasing rapidly, especially in Texas.

Delta Airlines (DAL, 49.09, 6.84%)

Shares of Delta Air Lines, one of the big four US airlines, rose nearly 7%, breaking a new 52-week high.

Delta Air Lines held an investor day event on the same day and presented a stellar earnings forecast.

Delta Air Lines explained that while demand for travel such as overseas travel is increasing rapidly, air ticket prices are rising due to limited supply due to lack of management throughout the airline industry, delays in new aircraft deliveries, and difficulties in securing pilots. The pricing power of the airline industry is strengthening.

In addition, he explained that as jet fuel fell by 30% compared to a year ago, the burden of fuel costs had fallen and profitability had improved.

Accordingly, we have revised our earnings-per-share (EPS) and free cash flow (FCF) guidance for this year. In particular, he predicted that this second quarter will be able to record a record quarterly performance (second quarter).

Roblox (RBLX, 41.82, 6.66%)

Shares of Roblox, operator of an online game platform based on the metaverse, rose 6.7%. This is due to the positive influence of Wall Street.

On this day, Bank of America evaluated Roblox as a ‘leader’ in the metabus market while maintaining a ‘buy’ rating and a target of $54 for Roblox.

In particular, it is analyzed to have secured the foundation for growth in the mid-20% range by establishing a virtuous cycling structure that attracts developers, brands and sellers to the platform.

Another big stock news

– Volvo agrees to use Tesla’s (TSLA, 3.8%) charging network (supercharger) from 2025

– Costco (COST, 1.3%) maintains the membership fee, but strengthens the crackdown on card sharing…“In the future, you must present your ID when using your membership card”

– Walgreens Boots (WBA, -9.3%) , EPS annual guidance fell from $4.45 to $4.65 to $4.0 to $4.05

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