Stocks opened the day lower by almost 100 points but then fought back and closed with a miniscule loss to 23 points at 27,198 for the Dow. Trading volume was higher which indicates big investors used the weakness to go long. Both IBD and BTS indicators are positive and Brian “Mr Sunshine” Wesbury, Chief economist at First Trust has recently upped his year end Dow target to 29,250. Even the gurus at Fidelity are noting that odds of a recession are on the decline due to underlying consumer strength and business optimism plus they expect the Federal Reserve to lower interest rates tomorrow. Apple reports earnings after the closing bell today.
Shares of Capital One lost big after it was reported that a Seattle based ex-Amazon software engineer hacked into the database of Capital One (which uses Amazon cloud services) and got ahold of about 140k credit card applications which had been on file from 2005 to 2017. The perpetrator, a lady named Paige Thompson, is now in custody and looking at 5 years of “brick and mortar” time. How ironic! Capital One said it will cost them roughly $150 million in mitigation costs. I wonder if Paige will try to post bail in bitcoin?
US trade representatives are in Shanghai today working on the trade deal with China. Some estimates put the current level of manufacturing job losses in China at roughly 2 million since the trade war broke out. The job loss is due to supply chains shifting back to the US and to other nations like Vietnam. One study noted that over 50 manufactures have given notice of their intention to move away from China and mitigate tariff damages.