Hey Scoopers,

The stock market closed the day with almost 1% gain, and we are only one signature away from phase one deal between the U.S. and China before the new round of tariffs kicks in on Sunday.

Beyond the overall market, so far in 2019, investors have been so cruel to one stock that it has lost almost half of its value. However, the possibility of a trade deal between the U.S. and China has brought back life to this stock. At the same time, reportedly, FTC is getting ready to crush investors’ hopes and dreams about another stock, at least in the short-term.

Oh, and by the way, have you ordered your Baby Yoda? More on that in the “Water Cooler” section.

Also, don’t forget to scroll down to the “Overall Market,” “What’s Up?” and “What’s Down?” sections to learn more.

Market Recap

    • U.S. markets: All three indices finished Wednesday in the green with at least 0.7% gain. Scroll to the “Overall Market” section to learn more.
    • Cryptocurrency: We don’t know what to tell you here. Bitcoin’s price is still hovering slightly above $7,000, with no major change or news to share with you at this point.

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OVERALL MARKET

Is it time to pop the champagne yet?

The two indicators that we have been watching this week seem to be boosting the stock market. First, we heard from the Federal Reserve that the economy is on track and there is no need for an additional interest rate cut for the time being.

And then, the news broke that the American and Chinese negotiators have reached an agreement about the fate of the trade deal, in preparation of the December 15th deadline. All that is left, at the time of writing the Scoop on Thursday afternoon, is for President Trump to sign off.

Should we pop the champagne?

Well, hold off on that. Who knows what’s happening behind those closed doors in White House. We don’t know what priorities either of the two sides of the deal has, and whether it is to their respective political advantage to sign the deal. Until its signed, it’s no deal. And, even if it’s signed, there is always a chance to revert back. So, no, don’t pop that champaign yet.

Trade deal matters, but, the economy must also hum along. One concern is the “uncomfortable” pop in the number of weekly unemployment claims last week. Chief Investment Strategist of Charles Schwab & Co. Liz Ann Sonders brought that up in her tweet earlier in the week. Thus, not everything is rosy, even if the trade deal goes through.

WHAT’S UP

The holidays may save this stock.

So, what happened?

Shares of iRobot (Ticker: IRBT) were up more than 6% on Thursday. Investors have been borderline cruel to iRobot in 2019. The company’s stock price has lost almost half of its value this year over trade war fears and competition concerns.

The possibility of a trade deal between the U.S. and China and an extremely low price has helped the stock price to gain a few percentage points. Not to forget that the holiday season can end up being a godsend for the maker of home robotic appliances. We can’t wait for the company’s next quarterly earnings report to see how this story will pan.

WHAT’S DOWN

FTC is after this stock.

So, what happened?

Shares of Facebook (Ticker: FB) were down more than 2% on Thursday. The media reported that The Federal Trade Commission (FTC) is investigating the company’s plan to merge the backend infrastructure used by Facebook, Instagram, and WhatsApp.

It is rather an unusual move. These three platforms belong to FACEBOOK, the parent company. The time to intervene was when the company was paying billions of dollars to acquire them. We are torn on this one. The investor in us is not happy to hear this. The human in us is applauding the move by FTC. Regulatory oversight is what protects consumers and societies.

Nevertheless, even the investor in us knows that if the regulators force Facebook to spin off Instagram and WhatsApp, we will still be the winners. Splits, typically, leave investors at a much better place than where they were pre-split. Instead of owning one successful stock, they end up with 2 or 3. In the end, we don’t have anything to complain about in the long run when it comes to the possibility of breaking up Facebook.

WATER COOLER

Have you preordered your Baby Yoda?

So what happened?

Disney’s (Ticker: DIS) streaming service has evoked the maternal instincts of every man, woman, and child who has streamed The Mandalorian series. We are not kidding you. We listen to quite a few business podcasts, and it was hard to avoid hearing Baby Yoda at least once a day in one of those podcasts since the series went live on Disney+. It didn’t matter who is talking. Everyone wants to hold a Baby Yoda plushy.

And, the wait is over. Hasbro (Ticker: HAS) is ready to take preorders for Baby Yoda. This is good for Hasbro, sure. But, do you know who wins the most from evicting maternal instincts of the society at mass? Disney (Ticker: DIS) and its shareholders.

Here we go again. Another genius marketing and merchandising campaign by Disney in the form of cute, cuddly, fuzzy Baby Yoda.

We just have to hug it. Is that wrong?!

Disclosure: Authors of this Scoop own shares of IRobot (Ticker: IRBT), Facebook (Ticker: FB), and The Walt Disney (Ticker: DIS).

Hoda Mehr

Hoda Mehr

Brought to you by Hoda Mehr, Editor at Trade Stocks, CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 8,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism and storytelling to all aspects of her work. Subscribe for free here: Stockcard.io