When this market started to fall on Friday and Monday, I stated that the disease is not going to be a big deal, and that the markets are over reacting. Yesterday, we saw the markets get overly optimistic too soon, and without enough selling beforehand.
We are trusting reports from a nation (China) even more full-of-s&#t than N. Korea and Iran with information. We KNOW for a fact a lot of people are dying and China is saying that the cause of death is “pneumonia”. Videos are leaking out of China of ER rooms of patients and doctors melting down emotionally and physically.
YET....the propaganda has shifted from “this is the end of the world” to “We got this”. Elizabeth “Pocahontas” Warren is not helping matters claiming the Coronavirus is the result of global warming, but her opinions are not accepted by the CDC yet.
The impeachment hearings are totally fizzling out, and that little “uncertainty”, as small as impeachment chance was, is evaporating. That will help the markets too.
Going into positive expectations from AMD and AAPL, less of a panic over Coronavirus and diminished impeachment chances saw the Dow rise 187 points and the SPX rise 32.61 points (1.01%).
AAPL – going into earnings, AAPL was up 8.74 (closed 317.69), or 2.8%.
AMD – expecting good earnings and a new female board member saw the stock close up $1.27 (50.53) (2.58%).
VIX – the VIX closed down -1.95 (-11%) at 16.28.