Dow closing up 6 points. S p declining 4. 6 . The markets favorites return to glory after a very Difficult Run although i should add that they were substantially higher until a late day sell off knocked them off much higher pedestals. Its been a welcomed fight. The markets taking it right on the chin. Today though they got off the canvas and they came back hitting. Lets take down the names. First theres the come back of the cult stocks, netflix, amazon and tesla. These stocks shouldnt matter in the long run. Theyre not leaders. Theyre solo disruptors of big time establishments that caught the fancy of individual investors like many of the people that watch mad money and that makes it crucial to the markets psyche. There was no news from netflix. It just resumed its climb to the 100 million market it can get to. Nearly twice the current market cap because it represents worldwide entertainment. Amazon is going higher up 3. 75 today because some of the bricks and mortors are down his bli
Sara eisen is joining me once again. Hi there, sara. Good to see you, mandy. Triple digit rally for the dow be up with over 300 points at this hour. Still have a long way to go to make up for yesterdays losses. Bob pisani jones me here on the floor. Youve been looking at historical rebounds. Were due for a rebound, getting it right in line with a historical pattern. Let me show you the s p. We flat lined at the open, up 300 points on the dow, 37 points on the s p and we sort of have been right there throughout the day. A little bit of rise after europe closed once again. Saras right, once we had a correction, 3 down with the s p 500 two days in a row, that has been a rare occurrence. This only happened eight times since 1980, five in 2008 and each time, two sessions in a row, one day later, the s p has been up 75 of the time, averaging 2. 3 . Sara, guess what, were up 2. 2 on the s p. Thats today. Not bad. Its happening exactly in line with expectations. One week later, its up 86 . The
What here we go back to the new normal each as the torrential rains continue to wreak havoc on life in texas, after opening down big, i mean like big, horrible the averages had a huge turn, with the dow bouncing almost nearly 200 points, closing up 57 points s p gained and nasdaq climbed 0. 3 it was quite a turn around that could have some follow through so whats the new normal that drove todays action, including the intraday comeback. Americas not the worlds policemen any more sure, an attack on japan is like an attack on us. But if north korea ever sends a missile at japan instead over it, that missile needs to be headed off the question here is who pays for the Patriot Missile system the answer, trumps views on Foreign Policy is easy you can expect japan to pay and theyll be buying the missiles from raytheon. I know the rally seems long in the tooth, from lockheed to the often asked about cratos if theres one thing countries will keep spending money on, its defense now that north ko
What do i mean by the Bigger Picture . For starters, think about this for a second the fourth largest city in the u. S. Has been taken off line but for the most part, the state and local authorities seem to have it under control. While harvey has been a real tragedy for the millions caught in its path, the Natural Disaster hasnt been accompanied by any man made catastrophes like during katrina. Trumps visit to texas wasnt a fiasco if anything, it was workmanlike the president has had a real gift for being divisive in recent weeks, but if you only focus on the negatives, you miss the good things. Like the 3 gdp growth, smashing figure by the way. More important, though, the president is acting president ial the fact that we have now a world class Reclamation Project in houston that he can lead. This storm hit a heavy republican state im betting they could get tens of billions quickly to rebuild the moment the flood waters recede its going to be a massive shot in the arm for the nation,
Traditionally, for stocks. Dow is usually down more than 1 on average does that hold true to form this time listen, i dont know if history is your guide on this. I think the relevance of whats going to happen here in september is really about the tremendous amount of obstacles that the market faces right now. And what do you do with that do you allocate new money . Do you expect a correction to be coming right now i think the best strategy, when you look, is to be defensive if hedge things out, if you have the ability to use options or the ability to access the volatility market, i think those are the right things to do because i think the certainty about september is that volatility is going to rise. Predicting which direction overall the market is going to go, i think, by the end of the month, that would be a fools game but im rather certain that volatility will be spiking interesting way you put it. A tremendous amount of obstacles, you say lets go down the list what are we most wor