Case got it wrong. Nobody expected things to turn this thing this fast. The trump rally trademark is still available. Nobody patented that, copyrighted that, its still available. Arent you proud of the fact this show two days before the election, the day before the election, asked the questions over and over, if he wins, they control all houses of government, you at minimum get tax reform and less regulation, why would that be bad for the stock market . That question was asked over and over again on this show. I had to be called a jackass on twitter by a supposed colleague because i disagreed that the market would go down 1,000 points. By definition when this Insane Person with his finger on the button of the nuclear code, when he was going to be elected. We put up with a lot. We pit up with a lot to. There have been a lot of speculation about where this would all go. Lets juxtapose the wisdom of the American Public versus the elitist intellectual ruling class that permeates this entir
Some big winners, it could also start producing some big losers with the dow edging up 21 point, snaep declining marginally, and the nasdaq falling 0. 36 . Before i go into how things are playing out, let me say candidate trump may turn out to be different from President Trump. Candidate trump, what does he want to do . He wants to cut taxes, right . He wants to build infrastructure, build up our armed forces, and be tough on our trading partners. A philosophy that included scrapping nafta to get back at mexico and perhaps throwing tariffs on the host of goods we import from china. Last weeks rally was based on the first part of the premise. You got taxes, you build more and Interest Rates go high, which is good for the banks and theyve continue to rally. You give people more disposable income. Thats good for retailers and travel and leisure companies. You want to pump up our military, you need to order hardware from Lockheed Martin and northrup grumman, to name two. The moves in those
Apple or a netflix or a tesla. After another day where the market hung in there, the dow gaining 67 points, nasdaq advancing. 26 , starting to be a pretty good year. I think its shining a light on the stocks that i follow in order to get a better feel for whats going on out there in the real economy, both domestic and international. So you have a sense of where we truly are. Lets start with my mainstays. Lets start with the rails. All aboard im always trying to measure the actual strength of our economy, and im not using all those data that comes from the fed and the government. That doesnt get there for me. One way to do that is by looking at the rails before there are only four publicly traded railroads of any size, and they all carry the same cargo so we can get some valuable nationwide comparisons. They move chemicals, iron, lumber, steel, cars, coal, ag products. Dont forget that they carry trucks too. So they doship merchandise that would normally be viewed as over the road cargo
Beat after the close, and its stock soars. Twitter reports once of the worst quarters of the year, and again, correctly, it gets crushed i find the action needs two stocks for reassuring companies that have stocks that go higher, and clown Show Companies that have stocks that go lower without everything and everyone its straight forward. Sometimes stocks can rally simply because they repuce to go down. Even when the federal reserves hinting that they might raise rates. The averages barely budged. Dow losing a point. S p declined 1. 2 . Nasdaq advanced 1. 8 . Sometimes individual Companies Just dont give you enough reasons to sell their stocks. When they report. And that can lead to tremendous rallies. I know that its go being up because its not going down. Can sound like some kind of weird zen riddle. So, let me explain. We saw four of these stories play out today. Panera bread, Buffalo Wild Wings, caterpillar and boeing. Two restaurants, voila, a heavy Machinery Company and the Worlds
Numbers, and theres very visible reputable companies. You would have expected a scorcher of a session. Instead, the market itself got scorched. Dow dropped 196 points. S p falling. 93 . Nasd thanks to concerns, some say justifiable concerns, over the sole vensy of Deutsche Bank, the largest bank in germany. These concerns had ripple effects all around the globe. Whenever we start worrying about the solvency of any bank rpg theres always going to be negative pin action. The stock is down again today. Its going to play out, and none of them is good. People will fear this huge banks problems will spill over to others as banks are always lending each other money, and theres a presumption that you shouldnt be lending any money to Deutsche Bank right now because maybe you wont get paid back. When you look at the bank collapses from the recent financial crisis, they were caused not by classic bank runs that depositors are pulling out all their cash, but because their credit was cut off by oth