After the U.S. Senate passed the $2 trillion coronavirus stimulus deal and despite record-setting jobless claims, Apple stock rallied and the Dow Jones Industrial Average jumped more than 1,200 points in trading on Thursday at midday.
Scott Lehtonen for Investor’s Business Daily:
Late Wednesday, the U.S. Senate passed the $2 trillion stimulus plan, sending it to the House of Representatives. A vote there is scheduled for Friday. Per CNBC, Treasury Secretary Steven Mnuchin said coronavirus stimulus checks will arrive within three weeks.
Dow Jones stock Apple rallied 3% in today’s stock market, while Boeing jumped another 15%. Micron Technology advanced about 5% on strong quarterly results, while FANG stock Amazon moved up 1.5%.
The recent coronavirus stock market crash remains at bear market levels — with benchmarks more than 20% off their 52-week high. According to IBD’s The Big Picture, the stock market outlook remains “in correction” due to the extreme volatility in the major stock indexes. Investors should be in cash, avoid new buys on breakouts, and create a watchlist of top stocks to prepare for a future stock market uptrend.
According to Wednesday’s Big Picture, yesterday was day three of a potential rally attempt for the Nasdaq composite. A potential follow-through day — the green light to start buying stocks — can occur as soon as today.
MacDailyNews Take: Apple’s Mac sales during this work-from-home due to the coronavirus period may surprise analysts and investors.
Using the stock market as the weather vane of economic health is pretty worthless. The stock market ≠ economy. The stock market has been disconnected from the real world via the financialization of the economy.
Apple stock has rallied no more than any other major tech stock and certainly less percentage-wise than the FANG stocks and Microsoft, so it’s nothing actually worth mentioning. Apple’s gains don’t hold a candle to Boeing’s daily gains and that company is going to take a much longer time to recover lost revenue than Apple, by far. Sorry, but I don’t see the point of any market rejoicing at this point in time. One day a stock is extremely up and the next day it is extremely down without any major changes in the world economy. People are playing the stock market as they though they are gambling in a casino. I’m just happy my portfolio has only dividend stocks which will give me a fixed quarterly income.
The $2T stimulus package will be like new-found money in hands of foolish children. They’ll probably run through that amount of money in a month or so. Many companies are being handsomely rewarded after they’ve burned through their own cash due to poor management and executive bonuses. However, I’m happy that the base employees have a chance of being saved.
Bear trap. This market isn’t done with the corrections. When next month’s unemployment figures are released, all the righties will be lining up again for Fed bailouts.
So much for the red hat team 11 year talking point about Obama and everyone else on the other team being a socialist communist whatever. Who’s spending trillions to bail out corporations with equity stakes now? This bipartisan deficit spending bill is the bigliest shift toward socialism since Medicare Part D was enacted. Well none of that matters to the MDN Wall Street cheerleaders here. They have a few months to come up with a whatabout story to shift the blame for this administration’s historically great bailout programs. You didn’t bother to post a single story about what Apple may or may not be doing for its workers around the world. All you care about is the stock price. That tells the whole story right there.
You are probably correct. The market will be bouncing all over the place for weeks to come as the algorithms chase each other and large institutional investors sell to cover the last month of losses.
MDN increasingly posts wishes rather than Apple related news. It ignores the downward drops while excitedly posting every upward tick of general indices. Apple hasn’t announced anything but that doesn’t stop MDN from pretending everything will be back to normal by Easter. That is what you want to hear, right?
A word of advice, MDN: the unemployment rate hasn’t bottomed out yet. That is your leading indicator. You can start predicting the return of the good times when the unemployment rate is well into a recovery. That’s several weeks of employment gains, not a single day press release you can post to make the trainwreck president look more presidential. That may be over a year away for the US. Every region of the world will recover in their own pace.