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Stocks are rocketing UP today! Anyone know why? (Original Post) at140 Apr 2020 OP
because donald fixed everything mucifer Apr 2020 #1
The big investors sold off when the market crashed (or before as in the case of the well-connected) jmbar2 Apr 2020 #2
Yes, the volatility is out of this world right now at140 Apr 2020 #7
Maybe because Jamie Dimon's JP Morgan Chase is having a lousy 1Q LiberalArkie Apr 2020 #3
Because Joe and Barrack came back to save the world? n/t TreadSoftly Apr 2020 #4
This was my first thought, but I'm not a financial expert... liberalla Apr 2020 #11
trump is dumping money onto wall st from a helicopter rampartc Apr 2020 #5
somewhat encouraging data from china, somewhat encouraging outlook from the banks unblock Apr 2020 #6
Probably as good reasons as any! at140 Apr 2020 #9
the recovery will be interesting because this is a disaster for many companies but huge for others unblock Apr 2020 #12
Yes, Amazon hit a new ALL TIME HIGH today...go figure at140 Apr 2020 #17
That isn't surprising. People who would normally be shopping in stores The Velveteen Ocelot Apr 2020 #26
Yes, what I was trying to say is Amazon is doing great in spite of the economy. at140 Apr 2020 #28
Wall Street groupthink is that a very large portion of the 2trillion of initial NoMoreRepugs Apr 2020 #8
But the law says the money can't be used for buybacks and bonuses ... oh, never mind! LastLiberal in PalmSprings Apr 2020 #31
This one says it's due to short covering progree Apr 2020 #10
Interesting jmbar2 Apr 2020 #16
Let me just say this... at140 Apr 2020 #18
Everyone seems to have an opinion based on their favorite metrics or ideological predispositions progree Apr 2020 #22
Betcha a little bird told the big money guys Donnie is going to announce something today. Girard442 Apr 2020 #13
Yep customerserviceguy Apr 2020 #14
Stocks can go up when "corporate earnings are shitty" FBaggins Apr 2020 #15
Yes true for 1st Quarter. Covid-19 became did not become a crisis until middle of March. at140 Apr 2020 #20
It had a serious market impact in mid Feb. FBaggins Apr 2020 #24
There is a saying about Wall Street at140 Apr 2020 #27
Irrational exuberance over the diversion of the Covid aid package Warpy Apr 2020 #19
I did buy a few weeks back, but keeping some cash in reserve at140 Apr 2020 #21
Yes, when people are down to the last dried bean in the corner of a cupboard Warpy Apr 2020 #25
For the sake of low wage workers, I hope the economy does come back at140 Apr 2020 #29
google the federal reserve xyoungblood Apr 2020 #23
Well... Mike Nelson Apr 2020 #30
The fed is buying stock and transfering it back to the companies at no cost.... getagrip_already Apr 2020 #32
This message was self-deleted by its author progree Apr 2020 #33

jmbar2

(4,754 posts)
2. The big investors sold off when the market crashed (or before as in the case of the well-connected)
Tue Apr 14, 2020, 12:21 PM
Apr 2020

and now they are buying again at lower prices. The stock market is less long-term investing now, and more trading the dips and rips. IMO at least...

at140

(6,105 posts)
7. Yes, the volatility is out of this world right now
Tue Apr 14, 2020, 12:27 PM
Apr 2020

Down 400 points one day, up 500 points next day on DOW.

unblock

(51,793 posts)
6. somewhat encouraging data from china, somewhat encouraging outlook from the banks
Tue Apr 14, 2020, 12:26 PM
Apr 2020

i think there's a sense that the worst has already been priced in.

any hint that the economy might start to reopen even slightly earlier than what's already priced in would cause a rise.

at140

(6,105 posts)
9. Probably as good reasons as any!
Tue Apr 14, 2020, 12:29 PM
Apr 2020

because they say market is looking ahead, not in the rear view mirror.
However I just can't see how corporate earnings will be awful in 2nd & 3rd quarter.

unblock

(51,793 posts)
12. the recovery will be interesting because this is a disaster for many companies but huge for others
Tue Apr 14, 2020, 12:37 PM
Apr 2020

businesses that depend on foot traffic and close proximity to customers are obviously hit hard -- dine-in restaurants, barbers, nail salons, etc. mostly local businesses. but they have suppliers who will suffer as well.

on the other hand, companies like domino's and amazon are doing great as they were always delivery services, which is doing just fine right now.

i expect the "winners" will do really well, and there will be a ton of consolidation among the "losers". to some extent this happens in all recessions/recoveries, but the contrast will be very stark this time. in most recessions, nearly all companies are affected. this disaster is more like a tornado, where some houses remain intact while other are obliterated.

NoMoreRepugs

(9,129 posts)
8. Wall Street groupthink is that a very large portion of the 2trillion of initial
Tue Apr 14, 2020, 12:27 PM
Apr 2020

money is going into buybacks and loan repayments... hence, their coffers.

31. But the law says the money can't be used for buybacks and bonuses ... oh, never mind!
Tue Apr 14, 2020, 04:36 PM
Apr 2020

Just look at what Fat Donnie did seconds after he signed the bill into law. He issued a signing statement saying he wouldn't obey the oversight requirement.

jmbar2

(4,754 posts)
16. Interesting
Tue Apr 14, 2020, 01:01 PM
Apr 2020

I'm also suspecting that this is just a dead cat bounce. The underlying fundamentals are bad for the foreseeable future.

at140

(6,105 posts)
18. Let me just say this...
Tue Apr 14, 2020, 01:27 PM
Apr 2020

anyone who claims to know where stock market is going next is either a fool or looking to pick your pockets.

progree

(10,864 posts)
22. Everyone seems to have an opinion based on their favorite metrics or ideological predispositions
Tue Apr 14, 2020, 03:11 PM
Apr 2020

Last edited Tue Apr 14, 2020, 03:58 PM - Edit history (1)

or whatever. I think it is headed generally down. I think we're headed for a severe recession (and I'm not talking about something that lasts just a couple of months, obviously we're in that now), and the market hasn't priced that in yet. Most in financial pundit-land seem to think that the worst is behind us. And obviously so do investors in general -- with the S&P 500 (2846) up 23.5% from its March 20 bottom (2305), as of today's close.

Then there are the perma-bears (many in this group) that have been yammering about Shillers CAPE ratio or Buffett's total U.S. stock market valuation to GDP ratio since about 2014. And bubble this and bubble that and bubble bubble bubble. And of course the orange shit-gibbon indicator ever since Nov 8, 2016 (S&P 500 closed that afternoon at 2140).

So be it, the tug of war between the bulls and the bears.

customerserviceguy

(25,183 posts)
14. Yep
Tue Apr 14, 2020, 12:43 PM
Apr 2020

Helicopter money is fueling this sucker rally. I'm sure that first time unemployment numbers are going to skyrocket again this week. It must be hell to have to deal with most of the state UC offices, who were probably caught flat-footed by the C-19 crisis.

FBaggins

(26,566 posts)
15. Stocks can go up when "corporate earnings are shitty"
Tue Apr 14, 2020, 12:44 PM
Apr 2020

If they are less so than what was anticipated.

at140

(6,105 posts)
20. Yes true for 1st Quarter. Covid-19 became did not become a crisis until middle of March.
Tue Apr 14, 2020, 01:31 PM
Apr 2020

I was on a cruise ending February 29th, and no one was talking about covid-19.
Except for outfits who sell on line like Amazon, Walmart etc, profits for 2nd and 3rd quarters will be simply horrible.
Boeing for example is losing plane orders by the hundreds from cancellations.

FBaggins

(26,566 posts)
24. It had a serious market impact in mid Feb.
Tue Apr 14, 2020, 03:35 PM
Apr 2020

Nobody may have been worried about it on a cruise... but companies that had supply-chain impacts from China were already tumbling.

Except for outfits who sell on line like Amazon, Walmart etc, profits for 2nd and 3rd quarters will be simply horrible.

Sure... but "simply horrible" isn't enough information. What will the impact be on earnings a year from now? Two years from now? How do those expectations compare to the expectations the market had yesterday?

A cruise line that I've used is up >50% in the last couple weeks... but that's still down almost 75% from where they were in January. Their chance of ending up bankrupt is still substantial... but not AS substantial as two weeks ago. That doesn't mean that their next couple quarters won't be "simply horrible". It could be as simple as "their chance of survival went from 10% to 25%"

at140

(6,105 posts)
27. There is a saying about Wall Street
Tue Apr 14, 2020, 04:11 PM
Apr 2020

(paraphrasing) Best opportunities to buy stocks is when there is blood in the streets. Yes, in mid-Feb the news was mainly from China being shut down, not so much US companies. My February 24th cruise was never going to be cancelled and we did not cancel it either. They did make us sign a form saying we had not traveled to China recently.

In March the market hit a low and it was the time when blood was running in the streets. It was the time to buy cruise company stocks. I should have bought cruise company stocks because I know cruise travel after almost 35 cruises so far. But like everyone else, I was scared what covid-19 was going to do to the economy.

2nd quarter will be horrible for companies like Boeing (hundreds of orders cancelled), airlines (people will not fly in crowded planes), Hotels, oil companies, auto's, etc.

Now when I say earnings will be horrible does not mean stock prices will be horrible. Market is typically looking ahead 6 months. Market was low in March. Which means economy will be low 6 months later, in September. And market is seeing a recovery in October based on recent performance. Market is not accurate 100% of the times, just 90% of the time.

Warpy

(110,518 posts)
19. Irrational exuberance over the diversion of the Covid aid package
Tue Apr 14, 2020, 01:30 PM
Apr 2020

to megacorporations and billionaires. Some investors think the worst is over and it's time to snap up stocks on the cheap.

I think they're wrong. Dummy can't just snap his stubby fingers and declare the economy open and expect it to run smoothly.

at140

(6,105 posts)
21. I did buy a few weeks back, but keeping some cash in reserve
Tue Apr 14, 2020, 01:36 PM
Apr 2020

There is a possibility reality will hit hard by end of summer.l

Warpy

(110,518 posts)
25. Yes, when people are down to the last dried bean in the corner of a cupboard
Tue Apr 14, 2020, 04:00 PM
Apr 2020

their jobs haven't come back, and the unemployment has run out.

This is not going to be an easy time to live through for any of us. It's going to be especially tough for low wage workers who saw the support Congress voted for them going to a bunch of fat cats to prop up the stock market.

It also is likely what it will take to get rid of the cult that screwed everything up.

at140

(6,105 posts)
29. For the sake of low wage workers, I hope the economy does come back
Tue Apr 14, 2020, 04:17 PM
Apr 2020

All will depend on what is the death toll by end of June, and how wisely the country is opened up. There are plenty of possibilities to screw it all up.

 

xyoungblood

(36 posts)
23. google the federal reserve
Tue Apr 14, 2020, 03:18 PM
Apr 2020

They have been giving the banks trillions of dollars for the purchase of securities. They are trying to counter the falling market by re-inflating the market bubble. For Trump and the Republicans? Maybe and probably. Will it work? Nope, it's gonna pop again and worse this time, we are intertwined in the global economy and the Covid-19 virus is going to throw the world to another great depression, the U.S. taxpayers bailed out our banks in 2008, other countries didn't and their banks have been teetering on the edge for the past 12 years. Read some global news. Economists in other countries are telling their citizens to prepare, here in the U.S. the rich are reinvesting, drawing common folk back into the market...guess who is going to get the early news when the Federal Reserve decides to start selling its securities and collapse the market again? Not us commoners.

getagrip_already

(13,674 posts)
32. The fed is buying stock and transfering it back to the companies at no cost....
Tue Apr 14, 2020, 04:45 PM
Apr 2020

Similar to how they are washing bonds, they are washing stocks. It's the only way to sustain the market at inflated rates.

Response to getagrip_already (Reply #32)

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