Steering as far from politics as possible, I will say this as succinctly as possible. After Tuesday's close, Biden announced his VP running mate would be Kamala Harris.
Running on a platform of higher taxes, higher capital gains taxes, and a nudge closer to socialism that markets hate. I have said that if Joe Biden picks a VP that could dramatically help his campaign (Michele Obama or Oprah), the market would move lower. If he picked someone riddled with problems and little benefit to his campaign, then the market would run higher.
Right after yesterday's close, the Minis started to climb after Biden's pick was released. Immediately after this was announced, the Trump campaign sent out a video mocking the Biden/Harris ticket. The media immediately lowered their ethics another notch and painted the 4th most liberal Senator as a “moderate” who brings huge energy to the campaign.
I will NOT point out that a jar of vitamins or narcoleptic could add energy to Biden's perceived “basement campaign”.
OPEN TO CLOSE
On the open, the SPX printed higher by almost $22, and kept climbing all day. Near the close, the SPX cash hit a high of 3,387.89, but closed at 3380.35 (+46.66, or 1.4%). This missed the previous closing high of 3386.15 which was made on 2/19/20. The intra-day high was 3393.52.
All week in the Morning Coffee Report, I have be predicting that we will make new highs by Friday. The pressure is on.
TSLA announced it would have a 5:1 stock split. This sent shares higher by $180.37 (close 1554.76), or 13%. It still amazes me how people buy stocks simply because it splits, almost as if they think they are going to get free money.