Happy Manic Monday Membership,
The stock market is surge on Monday. Stocks rebounded strongly as trade worries subsided. The Dow Jones Industrial Average l and the S&P 500 both recovered losses from Friday and then some. All sectors were in the green, but technology and financial shares had notable gains. It appears that all those trade wars talk was just that TALK.
The stock market held solid gains in trading Monday as blue-chip stocks outperformed, helped by news that China is interested in working with the Trump administration to avoid an all-out trade war between the world’s two largest economies. Meanwhile, Facebook extended losses, falling another 2%, on news the FTC is investigating the company’s data practices. Shares of Facebook plunged nearly 14% last week on reports that Cambridge Analytica improperly gained access to personal data of millions of Facebook users.
Dropbox’s surge on the stock market has continued, with the company going up another 7 percent on its second day on the stock market. When it priced its IPO, there was a question as to whether Dropbox would surpass the $10 billion valuation it achieved in its last private round. It eliminated those concerns. To recap, Dropbox initially hoped to price its IPO between $16 and $18, then raised it from $18 to $20. Then it ultimately priced its IPO at $21, closing the day above $28. And it still continues to go up.
In closing, the market is very unpredictable these days. In the best of times you can’t time the market and I never recommend you try but these are some of the most usual trading days in some years. But there’s also more value and wealth creation than EVER before. So just be vigilant and patient in your choices and always make sure you involving for the long haul not the quick buck.
Jamaal W Vetose
Director of Research and Analysis