Today’s Early Stock Market Opinions
Good morning stock market investors. Grab a cup of coffee and relax to some nice music like I do in the morning.
It’s news which stimulates stock market reactions, and it’s the top market factors that determine which way stock prices go. It’s news about Fed interest rate intentions, stimulus money, Corona Virus fails, and trade deals. Fluffy political posturing and propaganda don’t have a lasting effect on markets.
Jobs, ISM, Falling Covid Cases, new Executive Orders
There’s so much news lately, it’s tough to keep track of what is influencing stock prices today. Earnings reports certainly gave the NASDAQ, Dow Jones and S&P a life last week and into this week. Yesterday’s excellent jobs report and the recent ISM manufacturing index rise is bring optimism to the markets.
Besides the executive orders to aid renters and landlords, perhaps the big story this is the reduction of negative factors. Jim Cramer of Mad Money is bewildered but he’ll come to see this.
However, if you’re not using AI stock market software or some sort of computer program to weigh the markets and find threats, then you should find a financial advisor you trust to interpret the wild events that will keep happening. And you should bookmark this blog and get a non-propaganda view of what’s driving the markets.
In other stock market news posts, I highlighted tech stocks as it indicators seemed to forecast big gains, and wow has the NASDAQ produced. Here in this screen courtesy of Yahoo Finance, you can see its meteoric rise since mid April.
Yesterday, Jim Cramer was really giving it to “clueless investors” who are apparently ignoring warning key signs:
‘Sometimes the market rallies and it makes perfect sense. Then there are days like today, when I can’t take how stupidly bullish this market can be.’ from the MarketWatch blog.
But his criticism is that individual investors are acting on their own judgement. However, many investors are guided by various algorithms, experts, news reports, expert forecasts, Cramer reports and AI based stock trading systems.
And it could be that investors don’t see huge value in stocks right now, but rather could be fleeing the money markets for Gold, oil stocks, and stocks. And the very positive US manufacturing stats reports this week were phenomenal.
The ISM’s forward-looking new orders sub-index increased to a reading of 61.5 in July, the highest since September 2018, from 56.4 in June. The survey’s measure of order backlogs at factories rebounded as did orders for exports — Reuters news release.
US manufacturing volume is well and recovering. This is the dream Trump had but could not make real. Looks like it’s finally happening just as he might get fired from his job.
Have You Been Researching the Vaccine Stocks?
There’s lots of good news regarding Covid 19 vaccines and other drugs that treat various dangerous symptoms. There are 140 companies officially pursuing a vaccine product that could become a trillion dollar money maker. Experts believe that any vaccine will work similar to current flu vaccines and have to be administered yearly, which would create big ongoing revenue.
Are investors buying up the vaccine stocks? It doesn’t appear their prices are rising commensurate with the potential payoff. Given these companies are reporting substantial progress in testing, these stocks should be a cornerstone in investor’s portfolios.
But if Corona Virus stocks are a gamble, it suggests investors are cautious, contrary to what Cramer is suggesting. There’s no guarantee that any of the top antivirus companies will create the successful vaccine, but odds are some of them will take part in the successful vaccine distribution and sale.
There’s more than one way to skin a Covid 19 cat.
Are You Serious: US China Trade Deal?
Yesterday, the Wall Street Journal reported that a meeting between the US and China will take place on August 15th, to discuss the bilateral trade agreement. It’s important because with President Trump lagging in the polls, his trade position might be a little more lenient on the Virus producing nation.
Seems hypocritical to change stances against the communists and American jobs, but that’s politics! My bet is the China US trade war is about to escalate. China just captured two more Canadians and may be inclined to execute them. This will not endear them to Canada.
This brings us back to the Corona Virus pandemic in the US and whether it can be curtailed. The infection trend in California, Texas, Arizona and Florida is downward, so investors likely have a hunch Jim, that the worst is over.
Has this era of misery finally broken the backs of young protesters and the thrill of spreading virus? If President Trump supports small business and the poor, will that signal the end of riots, covid transmission and the work shutdowns?
Be sure to buy some good Covid 19 masks and observe strong social distancing as the danger period approaches.
What Could Cause a Stock Market Crash?
What will lead to a stock market crash in the United states markets is friction with China, inflation meddling, interest rates rises, and incompetence in managing US finances.
Check out the best tech stocks including Facebook, Google, Tesla, Apple and Amazon. Just to be safe, investors have them in their portfolios. Keep a close eye on the antitrust hearings, as there is a remote possibility that it isn’t fake.