🍨 Daily Scoop: How did we get here? - Trade Stocks
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Daily Scoop

🍨 Daily Scoop: How did we get here?

By Tue, Sep 3, 2019

What you need to know?

Hello Scoopers!

Thanks to the Labor Day holiday, markets were closed on Monday, and we all got a chance to sit in our pajamas and not to worry about the stock market. However, something was missing in our morning routine. Did you feel it too? There was no Scoop!

Well, we are back with another lighting-round edition of The Daily Scoop. Here’s everything you need to know about how we are starting a new month in the stock market:

Last Monday, the G7 Summit came to the rescue of the stock market, and pushed the stock market up, after one of the strangest tit-for-tat tariff showdowns. Read more here. 

Despite the fight between the politicians, the love for American brands and culture disrupted one Shanghai neighborhood when Costco (Ticker: COST)opened its first store in China. Read more here.

The Conference Board Consumer Confidence Index was only marginally lower in August, and investors celebrated the day into the green zone. Read more here.

The good news continued into Thursday as the Chinese official put their retaliatory tariffs aside. Read more here.

Finally, the stock market got ready for Labor Day Weekend, and wrapped the week calmly, with the three major indices barely moving on Friday.However, the economy wasn’t chilling. The first round of tariffs on consumer goods import from China went in effect as of midnight, September 1st. Next week is going to be interesting, to say the least!

We got all those stories and more in the “Economy,” “What’s up?” and “What’s down?” sections. Scroll down to read.

MARKETS

  • U.S. markets: The stock market was pretty chill on Friday. The Nasdaq inched down, while the Dow and the S&P moved up a tiny bit. Scroll to the Overall Market section to learn more.
  • Cryptocurrency: On Friday, there wasn’t much happening in the cryptocurrency market either. However, over the weekend, Bitcoin’s price inched up and passed the $10,000 per coin mark, recovering from a sharp decline last week.

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ECONOMY

Something important happened on September 1st. 

What’s happening? 

While we took some time off to relax during Labor Day Weekend, the U.S. economy got hit by the first round of tariffs. With all the announcements, claims, and tit-for-tat news that flow through the media, it’s hard to keep track of what’s happening. Regardless, as of September 1st, $112 billion worth of imported goods from China got an additional 10% tariff.

What does this mean? 

According to an analysis by Peterson Institute for International Economics, 45% of vegetable products and 77% of textiles and clothing imports from China are among the top categories that got the new round of tariffs as of September 1st. These are products people buy and use. Thus, consumers are about to feel the tariffs’ economic pain. It’s very likely that this new round of tariffs impacts the U.S. consumers’ confidence in the economy and potentially creates a slower economic growth. Expect a whole slew of expert analysis and media frenzy about this topic in the coming weeks.

WHAT’S UP

This company had a great Friday. 

GoPro (Ticker: GPRO) is a household name. Many investors picked up a few shares when the action-camera maker was the new hot stock. In its glory days, GoPros’ stock was trading at around $90 per share. Fast-forward to 2019, GoPro’s stock price is hovering around $3 per share. The fall from grace for GoPro was also a doom story for Ambarella (Ticker: AMBA), the maker of chips and sensors for high-resolution cameras GoPro uses in its products.

Ambarella has been doing its very best to reduce the impact of GoPro on its revenue. After several quarters of struggling to convince investors that it does more than drowning along GoPro, on Friday, the company finally got its break. The stock price was up more than 17% on Friday, thanks to better-than-expected quarterly earnings. Even trade war hasn’t dampened Ambarella’s resurrection party.

WHAT’S DOWN

This company had a bad Friday. 

On Friday, we talked about Ulta Beauty’s (Ticker: ULTA) bad day. Once a darling of the stock market, Ulta has had a two-day streak of lousy days. The company’s stock fell more than 16% on Thursday, and again, another 29% on Friday. It looks like investors continued to fall for the doom and gloom story, due to lower-than-expected full-year guidance in the company’s Q2 Quarterly Earnings report. 

WATER COOLER

Happy Birthday, Uncle Warren! 

So, what happened? 

August 30th was uncle Warren’s 89th birthday. The editorial team gathered around the table and wished investors’ uncle a very happy birthday. To celebrate his birthday, let us share one of Warren Buffett’s finest quotes that we tend to repeat around the office quite often:

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

More insightful Buffett quotes are available here.

About the Author

The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card