WASHINGTON – Employing a tactic reminiscent of one once employed by the ever-more-disgraceful Washington Post during the Bush administration, the media once again is flogging the spiraling number of new coronavirus cases / diagnoses in red states. This latest surge in media coronavirus fear mongering and terrorism dislocated stocks last week. Indeed, Monday markets promised more of the same. But instead, led by surprising good news from a major Dow Jones Industrials component, the badly battered Boeing (trading symbol: BA), market averages took off like a shot. They remain up as we move toward Monday’s closing bell. It’s a most impressive Monday rally for a stock market that needed it.
(We’ll have a lot more to say about the media fear mongering in an upcoming post.)
A Monday surprise on the upside – Led by… Boeing??
The NASDAQ and the S&P 500 lagged the Dow for a bit in early Monday action. But they, too, eventually joined the ongoing party. Which is still ongoing as of 2:10 p.m. ET. As always, you never know where things will close today, given the weird trading action that always goes down, starting at roughly 10 minutes before the 4 p.m. closing bell. But so far, so good for the bulls.
Monday morning’s good news from Boeing, which I consider provisionally good news BTW, was the announcement of the FAA’s approval for the company to begin test flights of its long-grounded 737 MAX.
The company’s once high-flying shares, mercilessly pounded ever since flaws were found in one of the airliner’s critical systems – flaws that likely helped cause two spectacularly fatal crashes in this new craft – caused the grounding of all existing models. And ultimately, the entire catastrophe caused the complete cessation of manufacturing for this key new aircraft. The ripple effect across the industry was — and is — enormous.
A battered Boeing no more?
That effect quickly spread across the international airline and supply industries. It put a major, if subtle, damper on the Trump recovery that had persisted month after month since the day of his inauguration.
Mass quantities of laid-off Boeing employees proved just the prelude to the current economic massacre initiated by the worldwide coronavirus pandemic. But we may have just witnessed the end of that trend. If Boeing can get its approvals back again from both the FAA and related international agencies, the 737 MAX will fly again. And likely with the safety and economy that made it a one-time smash best-seller. Whether it can regain that status again after this current, damaging episode, remains to be seen. But things can’t get any worse. Perhaps later this year, the currently battered Boeing, and its shares, will be battered no more.
Counterpoint: The media’s continued coronavirus fear-mongering efforts
Leaving perhaps no-longer battered Boeing for now and looking back on last week’s market action, I’d observe the following, which should be obvious but might not be. The ongoing coronavirus fear mongering by the media remains the primary villain behind last week’s substantial (-3%) market decline.
Plus, of course, the seemingly endless Antifa- and BLM-led destruction of individuals and property, allegedly via “peaceful protests” decrying the death of XYZ. Violence, destruction and needless job loss never helps anything, except Marxists and communists hell-bent on “revolution.” But the media tells us it’s all “peaceful.” Who are they kidding?
“George Floyd protests” are protests no longer
These “George Floyd protests” are no longer protests. Indeed, most of what’s going on today merely exploits Floyd’s death as a politically correct excuse to riot and destroy, even as the media covers for them by describing these ongoing festivals of destruction as “peaceful protests.” They’re not peaceful. They’re Antifa- and BLM-instigated riots, meant to destroy small businesses and the livelihoods of middle-class entrepreneurs – of all races – who have the nerve to embrace capitalism and ignore the alleged virtues of socialism. The Stalinist flavor of Marxism driving these destructive (and mostly white) clowns is a bogus philosophy that has failed every single time a government tries to implement it.
Between the highly misleading headline treatment of increasing coronavirus cases (not deaths) and the endless destruction caused by leftist brownshirt thugs, individuals and markets alike continue to get battered by headline risk, much of which is due to deliberately misleading reportage. Some of which has the nerve to blame all the violence, murder, destruction and statue desecration of President Trump and the right.
After all, who’s been instigating and carrying out all the violence anyway? You and me? Those who work for a living to support their families? Or the Marxist, college trained and mostly white thugs who’ve been systematically attempting to destroy the American way of life? For all Americans.
Battlefield prep for Election 2020: Not likely to help stocks
What’s going on here strongly affects the bi-polar nature of current US stock and bond markets. My followup article (hopefully posted a bit later today) explores the reasons why. This next installment is not a strictly business article. But it provides the ideological, Marxist reasoning behind 2020’s serial economic, emotional, and health-related disasters. It’s the latest manifestation of a bogus but persistent ideology that’s meant to destroy our way of life, our markets and, by the way, the Federal government and President Trump as well. It’s not likely to help stocks in the months ahead. Unless we can find a way to turn things around. It would be nice if the good guys won for a change.
– Headline image: Roll-out of the first Boeing 737 MAX in December 2015. Image via Wikipedia entry on the 737 MAX, via Aka The Beav, CC 2.0 license. Slightly modified to fit CDN format.