Source: Financial Times
The coronavirus brought the global economy to a practical standstill and led to a spike in unemployment. However, financial markets have recovered from their lows shortly after the pandemic initially materialized. The Dow Jones (DIA) hovers around 27,000, and is practically Y/Y. Stimulus measures from policymakers have helped provide funds to millions of Americans displaced by shelter-in-place policies. Monetary policy has also kept financial markets afloat.
GE stock is down over 30% Y/Y, lagging broader markets. After hiving off attractive assets over the years, the company has few catalysts left. Airlines are in survival mode and have sharply reduced orders for the company’s commercial aircraft engines. In Q2, GE’s industrial operations reported revenue of $15.9 billion, down 25% Y/Y. Power, Renewable Energy, Aviation and Healthcare each reported revenue declines. Industrial reported a segment loss of $365 million, down from a segment profit of $2.3 billion in the