The market excitement from last week didn’t continue into this week. Green arrows of the previous week got replaced by almost flat or slightly red arrows on Monday.
Beyond the overall market, the Dow had one stock to thank for its upward movement. And, another company’s investors started to curse at WeWork, not for breaking the IPO market apart, but for potentially ruining a good thing going on for another company.
Oh, and by the way, if you are an investor in Alibaba, make sure you send your ‘Thank you’ cards to Chinese singles who did everything they could do on Monday to make you just a bit wealthier. 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 read more.
- U.S. markets:The Dow barely inched upwards, and the other two indices took the opposite direction, but only slightly.Scroll to the “Overall Market” section to learn more.
- Cryptocurrency: Bitcoin’s price is now back to mid-8,000, and the bears are talking of the possibility of ever further decline.
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Were we just too excited?
What happened in the stock market?
Last week’s excitement about the U.S.-China trade deal has calmed down, and investors are left wondering whether we went overboard.
On Thursday, there was an announcement by Chinese media about the mutually-agreed removal of the previously announced tariffs. However, just a few hours after the market opened on Thursday, President Trump announced he hasn’t yet agreed to such rollbacks.
Now, there is news that the Chinese are as surprised as stock market investors, and everyone is just left wondering, what now? That’s why the stock market just barely budged on Monday. No one knows whether it’s good news or bad.
What does a savvy investor do?
One word: Ignore.
Ignore the news. It’s designed to entertain you, not to inform you. If you accept that the news is only another means of entertainment, and eliminate it as an input to your investment decision, you’d find yourself a lot less stressed and surprised about the direction of the market.
Thank you, Boeing.
So, what happened?
Shares of Boeing (Ticker: BA) were up more than 4% on Monday. The price increase was enough to help the Dow index to move into the green zone, in contrast to the Nasdaq and the S&P 500. It’s rare for us to thank Boeing these days, especially as there was news of more delays to the relaunch of the 737 MAX jets. The stock moved up because investors were happy about getting an update on the status of the fleet. Uncertainty bothers investors, and they appreciate any progress update over not knowing what’s going to happen.
Damn you, WeWork.
So, what happened?
Shares of T-Mobile (Ticker: TMUS) were down almost 2% on Monday. The stock started to fall as the news broke that WeWork is poaching John Legere, T-Mobile’s CEO, to take the helm of the company’s turnaround potential. And, the only reaction we had was to curse WeWork. You already broke the IPO market, and you have to ruin the thing we have got going with T-Mobile. Not to mention the Sprint (Ticker: S) acquisition that is about to come to fruition. Get your hands off of our good stocks.
Thank you, Chinese singles.
So, what happened?
For 11 years in a row, Alibaba has celebrated November 11th as Singles’ day. Every year, the celebrations have gotten bigger, and more elaborate. This year was no exemption.
Taylor Swift kick-started this year’s Singles’ Day, and Chinese consumers were on the clock to spend their money on Alibaba (Ticker: BABA). By the end of the 24-hour window, $38 billion worth of stuff was bought, and Alibaba wrapped up the day, with the biggest 24-hour shopping spree of its lifetime.
If you are single, living in China, we hope you had a great time shopping for things. More importantly, if you are an Alibaba investor, living anywhere in the world, we hope you had a great time watching Chinese singles contributing to your net worth.