Wall Street ends higher on hope that partial coronavirus stimulus deal may occur

During market hours yesterday, Trump stated that he was killing the stimulus bill until after the election and the market sank 600 points. Then, after hours, he reversed course and urged the passage of another stimulus package. It’s like he watches the ticker tape and when he sees something he says driving the market down, he turns around and takes it all back. Anyway the Dow had a field day today surging 530 points on the reversal that gave investors new hope. Also helping the market was the new view, stated by today’s expert, that “focusing on the potential positives that would come from a Democratic White House and not the stereotypical negative view for the stock market that was maybe in vogue three months ago.”  Q3 reporting starts next week and S&P earnings are expected to contract 21 percent. Volume was below average at just under 9 billion. 

Wall Street ends down 1% after Trump calls off coronavirus economic relief talks

Just as good news yesterday boosted the Dow 465 points, some truly bad news (at least bad according to everyone from Wall Street to the Fed) sank the index 600 points (after an initial rally that ultimately closed the Dow down 375 points) when Trump announced that he had instructed Republican lawmakers to discontinue negotiations with the Democrats on the stimulus bill, thereby assuring there would be no stimulus until after the election (and then, he made clear, only if he wins; otherwise we’re looking at January!) Fed Chair Powell stated that “the domestic rebound could still slip into a downward spiral if the coronavirus is not effectively controlled and growth sustained.”  It was a shock to everyone and triggered a selling spree at above average volume of 10.5 billion. 

Wall Street gains as Trump to leave hospital, investors hope for stimulus

The prospect of Trump’s speedy recovery with the announcement that he would be returning to the White House today (which in fact happened at 6:37 p.m.), potential for the two parties to reach agreement on a stimulus bill, and the positive economic news of the services sector reaching and even exceeding pre-pandemic levels was more than enough to boost the Dow 465 points.  (I’m not sure how the new services data jives with the reality that so many small businesses, most of which are in the services sector, have gone bankrupt.) There remains considerable concern that Trump left the hospital too early as the doctors have been very clear that he is not at all out of the woods yet and they won’t have a better idea on that score until the end of this weekend.  Volume is below average at just under 8.5 billion. 

Succinct Summation of Week’s Events 10.2.20 (plus Making Big Purchases)

So here's the weekly summation, the main positives that the markets continue to stabilize and unemployment continues to decline.  The main negative, of course, is Trump testing positive for COVID and, unfortunately, this went to press before the news broke on Friday of his hospitalization. Since the late news tonight is that he may be sent home as early as tomorrow, suggesting they may be releasing him too early, who knows how the market might react tomorrow?  

Today's AAII Zoom Webinar on Taxation In Retirement

 Today's AAII Zoom webinar on Taxation In Retirement was canceled to a defective Zoom link.  Stay tuned for an announcement regarding rescheduling.  Meanwhile, enjoy the (wet) weekend.  

Wall Street closes sharply lower as Trump tests positive for coronavirus

The market opened today with the already overnight breaking news that Trump had contracted COVID-19. And the market immediately sank almost 300 points. But evidently investors didn’t find the news too surprising since there was also an almost immediate trend to the upside achieving full recovery shortly after noon.  News that the House had passed a stimulus package (though unlikely to be approved by the Senate) helped to the upside but then the employment news of only 661,000 new jobs added in September, below forecast and the slowest increase since May, put additional pressure to the downside to ultimately close the Dow down 134 points. We remain a long ways from regaining the 22 million jobs lost in this shutdown. Of course, the big elephant in the room is that the really big news of Trump in the space of less than 18 hours since announcing his infection with only mild symptoms to being taken to the hospital didn’t hit until after the market closed so Trump’s progress will be monitored very closely this weekend and who knows how the markets will react come Monday.  So there was much uncertainty today and that was reflected in the below average volume of 9.3 billion. 

Wall Street ends choppy session higher as stimulus hopes ebb and flow

It was a wild ride today with the Dow swinging back and forth hundreds of points to finally settle at a very modest 35 point gain as new hopes for a stimulus bill got tempered with disappointing data on jobless benefits and consumer spending. Yesterday we got a big boost from positive economic data, today a whipsaw from lukewarm numbers. Everyone continues running to big tech for safety. Q3 reporting starts in two weeks with the forecast of a 21% drop in S&P earnings. Nobody’s holding their breath on Congress anymore. Volume was again a little below average at 9.5 billion.