E WFH Stocks - How They Respond To The Third Pandemic Wave

Over the past seven days, COVID-19 records have been shattered in many countries across the globe. The US is particularly hard-hit, with daily case numbers now tallying in at over 70,000. All the statistics point towards the pandemic gearing up for a third wave - the worst one yet. 

When the virus first hit the global economy, companies had to adapt - fast. They set up systems for telecommuting and invested in the necessary hard- and software infrastructure. 

Now it looks like remote work is here to stay. An October flash survey by S&P Global confirmed that almost two-thirds of organizations look to adopt distributed workforce models permanently.  

Unsurprisingly, these developments have resulted in a powerful performance of work-from-home (WFH) stocks throughout the year. Stocks of companies such as videoconferencing giant Zoom (ZM) have soared over 450 points - nearly 680% - year-over-year. At the end of June, Direxion successfully brought a pure-play ETF (WFH) of telecommuting providers to the market. 

With the pandemic wave now surging, the question is how the market will respond - in particular with a view towards WFH stocks. 

The S&P is Taking a Dive 

On Monday, Wall Street saw its worst day since September, with US stocks selling off all day.

The Dow closed down 2.3%, the S&P 500 down 1.9%. The tech-heavy Nasdaq Composite, which includes many WFH stocks, fared somewhat better, finishing down only 1.6%.

The reasons for this slump include political uncertainty (with the presidential election only eight days out and a stimulus package in limbo), the economic implications of rising virus numbers, and the anticipated earnings reports by big tech companies, including Microsoft (MSFT), Apple (AAPL), Google (GOOG/GOOGL), Facebook (FB), and Twitter (TWTR).

Amidst the tumble, WFH stocks did initially take a hit, but bounced back faster and stronger than other sectors. Here is a closer look at how five of the most significant remote working stocks are faring.

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Disclosure: None.

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