Stocks stabilized after yesterday’s selloff as we enter a quiet period before trade negotiations resume tomorrow in Washington D. C. At the close the Dow gained 2 points to close at 25,967. Trading volume was significantly lower than yesterday’s figure. IBD now lists markets as being under pressure while the latest news from BTS is still positive on high yield.
According to Barron’s, the tariff threat issued by President Trump came as a result of “systematic edits” to the 7 chapters in the 150-page draft summary of the trade deal. The edits involved deleting parts where China had committed to enforcing intellectual property protections, forced technology transfers and currency manipulation. All of these are core US complaints about the current trade situation with China.
Earnings continue to come in, but we are now on the downside of the earnings reporting season. Disney reported results that were generally inline with estimates. Revenue was up 3% and net income fell by 13%. The gurus however are already looking forward to Q2 after the astounding release of Avengers Endgame which grossed $2 billion in the first two weeks.
Another Bitcoin “wallet” was hacked last night and the hackers made off with $41 billion worth of Bitcoin. The company that was hacked said it would make up the losses but I cannot help but wonder how something so supposedly high tech could have money stolen and no one seems to have any leads on who took it and where it went. The blockchain, upon which Bitcoin sits appears secure but once you get Bitcoin it goes into a very unsecure electronic storage facility. It’s like having a secure armored car (blockchain) deliver a bag of money (Bitcoin) to your house and just dropping it off in the yard behind a bush in the hope that no one walks off with it. Crazy!