SPX 3443.12 +16.20
Multiple personality. The market was showing off its propensity to be addicted to greed and paranoid of fear. The real drivers of the stock market are not P/E ratios and value, rather it is fear and greed. Yesterday, we saw both Jekyll and Hyde several times.
The market opened higher on hopes a stimulus would be done. Nancy Pelosi scheduled a press conference at high noon. Leading up to the press conference, she stated that she is drafting the stimulus bill, and that they would negotiate after. You have to love the “you have to sign the contract to see what is in the contract” approach – her trademark.
At noon NY time, that market started to climb as it was announced both sides were talking but apart on some issue. I have no idea why that was good news, but the SPX ran higher by 47 points and cash hit its high of 3476.93.
After hovering there for 30 minutes, hope was dashed as both sides were not in agreement, amazingly, like they were at noon when the market ran higher. This “no agreement” was announced when the medication was wearing off, and the market didn't care for it. This time, the market erased all but 8 points of the SPX run.
For the rest of the day, the market hovered with the Dow higher by about 100 and the SPX higher by about 12, but looking shaky and nervous. SPX settled at 3443.12 (+16.20).
AFTER the close, SNAP reported earnings and is going to FLY higher on the open.