Missed Good News
By Mon, Oct 5, 2020
Hey Scoopers,
The market moved up and down in response to President Trump’s health status. — More on that in the “Overall Market” section.
Beyond the overall market, the need for good sleep and beautiful bedrooms pushed one stock price up, and a possible large investor was back in the market, pulling a FANG stock price down with its Call options. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, commentators missed a few good pieces of news that were reported in last week’s Jobs report. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: All three indices wrapped last week in the red. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price hasn’t been moving too far from its latest price, ranging between $10,500 and $11,000 per coin.
The Elephant in the (5G) Room
Now is a time when it pays to heed timeless financial wisdom.
John Templeton, one of the world’s greatest investors, once said, “To buy when others are despondently selling and to sell when others are avidly buying requires the greatest of fortitude and pays the greatest ultimate rewards.”
Market Abnormalities
Worries about President Trump’s health spiraled the stock market down into the red zone on Friday. However, by Sunday evening, stocks’ futures were up as investors received more updates about his health status. News such as the President’s health status has the power to send the market on an unpredictable path. Patience and time are the essential tools investors have at their disposal to battle such abnormalities.
Good Sleep & Beautiful Bedrooms
So, what happened?
Shares of Sleep Number (Ticker: SNBR) were up by more than 4% on Friday. The company manufactures and distributes mattresses, and it is widely known for its Sleep Number technology. Due to the COVID-19 pandemic and the temporary retail closures, the stock price was hit drastically earlier in the year. However, as work-from-home-fueled home renovations and re-furnishing continue, so does the rise in a new appreciation for good sleep and beautiful bedrooms. It seems Sleep Number is now becoming the beneficiary of the work-from-home trend despite operating in the retail sector.
5 Stocks to make up the PERFECT 2020 gold portfolio
This report is a primer to today’s evolving gold investment environment. Not only does it cover some of the basics like how to hedge your wealth safely with gold… but it also breaks down industry trends sector by sector… and pinpoints several high-quality growth stocks along the way.
Click here to download your free report right away
Possible Big Bets By A Large Investor
So, what happened?
Shares of Netflix (Ticker: NFLX) were down by more than 4% on Friday. There wasn’t any Netflix-specific news. However, it seems a large investor (perhaps Softbank) sold a significant portion of its FANG’s holdings while buying call options for January and March. This could justify why Netflix lost some value on Friday.
Commentators Missed A Few Things
So what happened?
Septembers’ jobs report came last week, and it wasn’t as exciting as investors were hoping. However, some good news was hidden in between the lines of the report that many commentators missed:
- The private sector’s new jobs exceeded expectations. That means the private sector is now working hard and keeping up with the demand.
- The hours worked per week reported by the Jobs report were up too.
Overall, commentators were worried about how mathematical calculations artificially drove the unemployment rate lower. However, the above-mentioned encouraging news showcased how the underlying economy is still on its path to recovery.
If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you!
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
