Trump’s Stock Market Has Been An Escalator Up But May Be An Elevator Down

Even though earnings growth was essentially zero in 2019, the markets hit record highs throughout the year as valuations increased combined with an outlook for earnings to grow in the high single-digits in 2020. Unfortunately, the combination of rich valuations and the diminished outlook for earnings growth due to the Wuhan coronavirus, has led to very step declines in stocks the past week. The Dow has fallen around 3,000 points or over 10% and entered correction territory.

After dropping over 900 points early on Thursday the market has recovered about half of it. Algorithms are playing and will continue to account for a large portion of the movements of the market as news items cross the wire and they react almost instantaneously. Numerous companies are pulling their financial guidance that they gave just about a month ago.

Mastercard disclosed that if current trends continue that its first quarter revenue growth will be lower by 2% to 3%. Starbucks has closed over 2,000 or half of its outlets in China and while United Airlines said it could still achieve its full year EPS guidance of $11 to $13 it was withdrawing it. Microsoft announced that it would not meet its guidance for its Personal Computing Business. It said, “Although we see strong Windows demand in line with our expectations, the supply chain is returning to normal operations at a slower pace than anticipated at the time of our Q2 earnings call.

Good - those gains came from the backs of those who did not benefit from it. WORKERS. I hope Wall Street crooks lose their shirts.

Buy the dip.

Oof

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Pelosi: Stock market’s plunge is ‘disturbing,’ Trump ‘silly’ to pin fall on Democratic debateHouse Speaker Nancy Pelosi on Thursday expressed concern about the stock market’s coronavirus-driven selloff and the California Democrat also criticized President Donald Trump’s analysis of the market’s action. Nobody cares what that American hating woman thinks! How this woman is still in charge is amazing. Dems have many issues. She should go talk to “silly” gundlach then
Source: MarketWatch - 🏆 3. / 97 Read more »

Trump is reportedly furious that the stock market is plunging on coronavirus fearsAccording to a new report, President Trump believes health officials' warnings over the coronavirus has sparked the market sell-off. I am too Fiscal Stimulus So what happened to Tuesday’s bounce CNBC was so sure of 🤔
Source: CNBC - 🏆 12. / 72 Read more »

The Dow just logged its worst 2-day percentage drop in two years — here are 5 reasons the stock market is tanking, and only one of them is the coronavirusThe U.S. stock market rally is starting to unravel, with a period of historic gains coming to a screeching halt, as fears the coronavirus epidemic may reach... 1) It was overbought 2) It was overbought 3) It was overbought 4) It was overbought 5) It was overbought
Source: MarketWatch - 🏆 3. / 97 Read more »

Donald Trump is furious about coronavirus-related stock market drops, blames CDC for spooking investors: reportThe president has informed his advisers not to make dire predictions about the financial impact of the virus, The Washington Post reported. Only a matter of time before he is spreading theories that China spread the virus deliberately to favour Democrats. Yep...he doesn't give a shit about no one past himself. LindseyGrahamSC I blame you for this monster.
Source: Newsweek - 🏆 468. / 52 Read more »