Order That Vino
Hey Scoopers,
The stock market ended Wednesday in the green. There was good news to justify the green day but only slightly — more on that in the “Overall Market” section.
Beyond the overall market, investors of a 2019 unicorn IPO got some good news, while a supposedly Amazon-killer company flopped the holiday season — more on that in the “What’s Up?” and “What’s Down?” sections.
Oh, and by the way, retailers are stocking up every ounce of French wine they could get their hands on. Why? — more on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market:
Market Recap
- U.S. markets: All three indices finished Wednesday in the green, even though the gain was only barely enough to make it a green day.
- Cryptocurrency: Bitcoin’s price didn’t just quite get to the $9,000 mark. However, Bitcoin traders are having an excellent January with approximately 21% gain since the start fo the month.
How to spot market trends up to 72 hours BEFORE they happen
This free live training reveals a proven method to escape the bleeding edge of the market and stay on the cutting edge.
Good news, but only slightly.
The green arrows are back but only slightly. Phase one of the trade deal is real, but not as exciting as investors have hoped. The stock market hasn’t crashed, but only for now. There is good news, but only barely. And, the stock market small movement is the perfect depiction of the situation.
Some good news, at last.
Amazon-killer? Not quite there.
So, what happened?
Shares of Target (Ticker: TGT) were down more than 6% on Wednesday. It wasn’t too long ago when everyone assumed Amazon (Ticker: AMZN) would kill Target. Then came quarter after quarter of growth in the same-store sales at Target. Suddenly, everyone assumed, maybe Target has found the secret sauce to kill Amazon. And, the stock soared. However, the excitement is flaring out in 2020. Target just announced a lower than expected same-store sales in the all-important holiday season. The softer holiday season performance was mostly due to rather flat or declining sales in the toys and electronics segment. Top the bad news with a few management change announcements, you could literally hear the hissing sound as the bubble of Target deflated during the trading hours on Wednesday.
The Online Wealth365 Summit January 20-25th
|
Quick, quick, order that French wine.
So, what happened?
Now that phase one of the trade deal with China is becoming real, it’s time to pick the next trade battle. This time is French wines’ turn. The United States has threatened the E.U. with heightened tariffs including a 100% tariff increase on French wine among other E.U. products. This is a tit for tat tactic in response to E.U.’s subsidies and supports to Airbus.
So, what’s the impact?
The first impact we have noticed is the rush by wine distributors and retailers to get ahead of the problem and order a one-year worth of French wine to control their cost if and when the 100% tariff kicks in.
If you are a vino fan, quick, quick, order those last bottles of your favorite Bordeaux, cause you may have to pay double what you pay now, if you wait too long. Cheers to 2020 and its new trade war.