After stock markets nearly entered the -10% correction zone, investors will watch the Middle East and Iran conflicts closely.
On the quarterly earnings front, Carnival (CCL) reports results this week. Airlines and travel/vacation companies faced selling pressure. High oil prices require airlines to raise the fuel charge. This will hurt demand for airplane tickets.
Speculative companies like Chewy (CHWY) and Beyond Meat (BYND) will report results on Wednesday. Investors fled both companies in the last year. Despite a small short float of 7.6% on CHWY stock, shares continue to close at new lows.
Rising volatility will add a premium to options on Coinbase (COIN), Lululemon (LULU), and Sunrun (RUN) stock. Among them, Coinbase has the most downside risks. The short float is 10.97%.
Investors are pricing in the increased chances that stock trading and cryptocurrency volumes will drop. The oil crisis decreased investor risk appetite. In response, Robinhood (HOOD), Futu Holdings (FUTU), Charles Schwab (SCHW), and Tiger (TIGR) are on the decline.
Investors are also dumping fintech. SoFi (SOFI) lost one-third of its value in the last quarter. Customers need to pay back their student debt. That caused markets to price in default risks.
Lenders like Upstart (UPST), Affirm (AFRM), Visa (V), American Express (AXP), and Mastercard (MA) also face more selling pressure this week. The private credit freeze spooked investors. That panic spread to credit card companies.
