Your Monday Market Blip 3/26/18

Your Monday Market Blip 3/26/18

Stocks rebounded from last week’s selloff with the Dow gaining 669 points on lighter trading volume to close at 24,202 on positive trade developements. CNBC host Jim “Mad Man” Cramer said the Stormy Daniels interview might have been a “buy signal” but he was unclear as to whether it was a fundamental or technical indicator! I wonder if Warren Buffett agrees with him.

As the trade/tariff situation continues to unfold it pays to be patient. In what is a positive development, South Korea today announced a revision to the six year old bilateral trade deal with the US. The deal avoids the 25% steel tariff in exchange for a doubling of US auto exports to South Korea, a capping of the amount of steel that South Korea exports to the US at 70% of current levels and a 20 year extension of a 25% tariff on trucks that South Korea exports to the US. Auto exports to Asia run through the Port of Aberdeen and this deal could be a benefit to those operations. China and the US are also lining up meetings with trade reps to work out differences. Chinese Premier Li Keqiang told global CEO’s that China would start treating foreign and domestic firms equally, not force technology transfers anymore and strengthen intellectual property rights.

A cheer went up from Redmond, WA after Morgan Stanley guru Keith “Wise Guy” Weiss issued a research report saying that with cloud adaption, large distribution channels, and a solid customer base and improving margins, Microsoft could hit $130 per share within the next 12 months. This would give the company a market cap of $1 trillion smackers. Microsoft has done well ever since Steve Ballmer stepped down as CEO. Now “that” was a buy signal!