When the market gives you a chance you got to do some buying, unless were talking about a stock and company thats in decline, then you got to take advantage of it. Critics today with all three major averages, record closes, dow gaining 85 points, s p gaining. And nasdaq climbing at 100 . You have to take the negative to get the best buys. That confuses a lot of people including you, so well explain it tonight why dont we start with the stock of apple not that long ago this stock had plummeted from 164 down to 150 why . Fears that the new iphone would bust now its back to 159. 88. I keep hearing, there was never anything wrong with apple the whole time but the stock got too heated then it got too hated in a compressed moment. When i asked obviously like a lot of other people so, i asked around and talked to many people i said what do you thinks happening here a bunch of me pointed me to an upgrade of key bank with the profits. I never thought its the acts in apple, meaning the acts is t
Rig count at 1 00 p. M. Eastern time. Our road map begins with a big set back for Prime Minister may. Yesterdays snap election ending in the Hung Parliament. What does it mean for the looming brexit talks . Plus, stock futures are pointing to new records as investors shake off that political turmoil in the uk and back here in washington, d. C. And complete vindication, thats the take away from the president on the testimony by comey but the reality may be a bit murkier. Well talk about that. But first, the uk is the lead. Mays conservative party lost the majority after the election. Resulting in a Hung Parliament meaning no party has the 326 seats that are necessary for an outright majority. May had called for the snap election in the hope of strengthening her hand in brexit talks after her meeting with the queen, the Prime Minister spoke about forming a Coalition Government. What the country needs more than ever is certainty. And having secured the largest number of votes and the grea
The stock market, you would want the Labor Departments monthly nonfarm payroll number. If the number is strong, you want to buy stocks if its weak, you want to sell today we got a barn burner of a number, 222,000 new jobs hallelujah with every area of the economy generating, which is why the dow rallied 94 points and the nasdaq and s p both advanced. When i wrote this book, i spent a tremendous amount of time trying to figure out what mattered to the market over the years running by Charitable Trust. Again and again, over those 15 years, the answer has been one single number. Growth is king theres been so much gloom lately that this number is busted, making me feel like a good reason stocks have rally sod hard lately. Employment growth means money to buy a car or a house heres why the housing stocks were taking a ride do i need to explain how hiring helps the banks and techs and industrials. The Labor Department gives you a very good report right now its health care and these stocks ha
Anything worth buying or selling off of this new cycle. So maybe we should open that were at a peculiar point in the calendar a couple ofweeks where historically nothing has happened, yet we get great volatility then the stocks rally as they did this afternoon ive got to tell you, i know why. No apparent reason why am i certain were trading on nothing i thought a lot about these periods and learned there is random movement periodically, and it always gets ascribed to something. The market is not always logical and the action doesnt always have to have a concrete cause. Thats why we might as well be adescribed the action to the eclipse. Its about as dark as these glasses. This morning, starting with f. A. N. G. , which is facebook, apple, netflix and google, they were up and down and people scrambled to find any reasons whatsoever there was a lot of instant analysis about what was wrong. Everything then within minutes, we start to see the usual obituaries being written about f. A. N. G.
Leapfr leapfrog. Whats leapfrog . Its when a particular companys stock moves up. It causes other stocks to be revalued higher, almost instantly. How does it happen . Lets start playing. Take the actions in the airline the reason we had gary kelly the perfect ceo thug, he had solid things to say about novembers bookings. The name of the traffic pickled up week after week after week postelection. That was news today and the stock quickly moved up smartly. Now we get to the valuation part t. Priced earnings multiple. Remember stocks dont trade on absolute basis, they trade on a relative basis. Nobody cares that southwest is a 50 stock. We dont think its twice as expensive as a 25 stock or half as expensive as a 100 stock, thats nonsense. What matters is the earnings per shares, what we are willing to pay for them. It often symbolizes. When gary came on this show, southwest was swell selling 13 times next years earnings estimates and they are wildly regarded as the best capitalization in a