🍨 Daily Scoop: A lightning round

By Hoda Mehr Mon, Jul 8, 2019

We hope everyone had a Happy 4th of July!

Here is a recap of the most important things that happened in the stock market in this short week of celebrations:

• We made history on Monday, July 1st, as the U.S. officially started the longest economic recovery in its history. Read More.
• OPEC extended its oil production cut for another 9 months and pushed the Oil prices higher. Read More.
• The G20 trade conversations between the leaders of China and the U.S. warmed up the investors’ heart, and the stock market prices rallied. Read More.
• There is a possibility of another trade war between the U.S. and E.U. over subsidies to their respective aircraft manufacturers; Boeing and Airbus. Read More.
• President Trump is hoping to convince the Fed to cut the interest rate by nominating two somewhat controversial candidates for the remaining seats at the Federal Reserve Board of governors. Read More.

What does it mean for investors?

Well, if you’ve been investing for a while, you would know that the stock market tends to fluctuate. There is nothing out of the ordinary rhythm of the market and the economy, despite the headlines. That’s why the stock market inches upward or crawls downward. Savvy investors stay invested in the market while keeping cash on the side for a potential pullback of the prices! That sums it up.

• U.S. markets: Wednesday was a short day for the stock market, and all major indices continued their positive movements and wrapped the day slightly higher than where they started. Scroll to the Overall Market section to read more about what happened. 
• Cryptocurrency: Bitcoin price fell to around $9,000, and soared to almost $12,000 on Wednesday. Why? When the prices fell to $9,000, several investors found it an excellent opportunity to stock up some Bitcoin. More demand, higher price!

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We are importing more stuff, despite the trade wars. 

On Wednesday, the Commerce Department said that the trade deficit grew more than 8% in May. America is importing and consuming more than what it sells to the rest of the world, and the trade wars and negotiations haven’t reversed this direction yet.

Why is this happening?

Changing trade balances is not a thing that can happen overnight, or even in one year for that matter. Also, many companies have been stocking up or reacting to the trade negotiations by taking rather emergency measures to avoid running out of the stuff they anticipate they would need if there are higher tariffs down the road. In the end, businesses are mainly accountable to their shareholders, and they will do whatever it takes to maintain their profitability. That’s may be one of the key reasons for why we are importing more now, compared to what the White House had hoped us do.

A good day in the stock market. 

What happened on Wednesday?

Wednesday was a good day for the stock market. All major indices had a green day. Consumer cyclical, Consumer Defensive and Technology sectors lead the charge and all other sectors followed suit.

Steve Jobs of cannabis is out of the door. 

If you are a cannabis investor, there is no way you haven’t heard of Bruce Linton, the leader at the helm of Canopy Growth Inc (Ticker: CGC).

Reportedly, the company’s major investor Constellation Brands Inc (Ticker: STZ) did not see eye to eye with Bruce and decided to send him out of the door, and potentially bring a leader who is more aligned with the direction Constellation Brands would like to steer the company toward.

On Wednesday, when the news broke, shares of the company was down. However, by the end of the short trading day, the stock recovered and finished the day more than 2% higher than where it started. Looks like the stock market investors are in agreement with the move.

Whatever you think of Bruce Linton, he is no doubt a Steve Jobs-like figure in the cannabis industry. Thank you, Bruce!

Is PC gaming on the decline? 

Shares of Electronic Arts (Ticker: EA) did not have a good Wednesday and ended up 4.5% lower. The video game maker has had a good run in the recent weeks and even analysts at BMO boosted the stock with a $130 per share price target. Wednesday’s share price decline can be either due to the overall pessimism about the PC gaming trend, or simply because investors are just taking some of the gains off the table.

You don’t always get a good reason for why a particular stock moves up or down until you get more information in the days after the fact.

Please listen to us, Uncle. 

So, what happened? 

Later this month, Justin Sun, CEO of Tron, is going to have lunch with uncle Warren Buffett. So what? Two rich guys are having lunch for charity! Meh?

Well, hare this:

Justin Sun is not just any CEO. He is running Tron, one of the more successful cryptocurrencies, and he is taking seven of his friends to go talk some crypto senses out of uncle Warren. Justin bid more than $4.5 Million to win this lunch.

Will these crypto misters convince the world’s richest opponent of cryptocurrencies to take a second look at this industry? We shall see!

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