We are back with another lightning-round edition of The Daily Scoop. Here are the most important events that created a rather happy week in the stock market with the S&P 500 hitting a record-high level:
Despite everyone’s expectation of an economic recession and a market correction, the S&P 500 hit a record-high on Monday. Read more here.
The stock market took a breather, ending Tuesday just slightly lower than where it started the day. Investors were in a wait-and-see mode in anticipation of Wednesday’s Federal Reserve meeting. Read more here.
The wait-and-see mode turned into a mini celebration as investors got the interest rate cut they were expecting. The Fed cut the interest rate by another quarter of a point. And, this small celebration was enough to push the S&P 500 index to another record-high. Read more here.
Thursday was Halloween. However, the stock market didn’t get too spooky, and only managed to finish the day slightly in the red. Read more here.
Finally, the stock market finished the week on a high note. Positive news from the Bureau of Labor Statistics and potential agreement on the core elements of a trade deal between the U.S. and China sent the stock market to a happy place.
Beyond the overall market, just like last week on a new war may be brewing in the business world. It’s not the delivery war, neither the streaming war and not even the trade war. It’s a new kind of war that has been triggered by a $2.1 billion acquisition on Friday. Any guesses? More information is available in the “Water Cooler” section. Also, scroll down to read about what happened in the stock market last week.
- U.S. markets: All three indices finished Friday in the green zone. The Nasdaq took the lead again and grew as much as 1.7%. Scroll to the “Overall Market” section to learn more.
- Cryptocurrency: Following an upsurge in Bitcoin’s price earlier in the week, the world’s largest cryptocurrency is now hovering above $9,000 per coin mark.
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The U.S. economy is doing just fine
What happened in the stock market?
With the latest job-creation report by the Bureau of Labour Statistics that came out on Friday, it looks like the U.S. economy is doing just fine. The number of jobs created in October was higher than expected. Moreover, there were revisions to the August and September numbers. Even the GM strike and some 40,000 people not having a job as a result of it, didn’t dampen the October numbers.
A great start to November
The stock market was on track to close the week lower than where it started until Friday arrived. All three indices jumped up on Friday and saved the week. For the second week in a row, Nasdaq took the lead with more than 1.7% 5-day return.
A possible agreement between the U.S. and China on the principles of a trade deal came to the rescue of the stock market on Friday. China announced that the call between Vice Premier Liu He and Robert Lighthizer and Steven Mnuchin on Friday was constructive, and the two sides agreed on some core elements of a trade agreement. And, the markets loved it.
Hold your horses, and don’t just celebrate by going all-in in the stock market. Actually, never go all-in in the stock market. This news is, of course, fantastic. However, let’s step back and put things in perspective. There was political news about the impeachment inquiries on Thursday, and now we have a trade deal. This could be just a fantastic coincidence or a smart political move to swing the market sentiment.
Remember that savvy investors don’t let their political views impact their investment decisions.
What does this mean?
Last week we talked about the stowage war. We are sure you’ve also heard of the streaming war and the trade war. Today, we have a new war to discuss: “The healthcare war.”
Google, subsidiary of Alphabet (Ticker: GOOG/GOOGL), just made a $2.1 billion acquisition to ignite the health care war. The company is spending that much money on Fitbit (Ticker: FIT), the provider of health tracker wristbands. The acquisition is not for Google to just sell step-counter wristbands. Rather, its because Google wants to go in war with Apple (Ticker: AAPL) and Amazon (Ticker: AMZN) both, companies who have big plans to tap into trillion-dollars of spending on healthcare and wellness industry. Add this war to your watchlist, because this war is just about getting started.