WASHINGTON, January 2, 2020 – It’s Thursday morning, January 2. And on Wall Street, it’s Happy New Year 2020. Yes, market fans, the New Year is here. And, on this, the first trading day of 2020, we’re watching stocks blast off in bullish trading action on this Happy New Year 2020 celebration across US markets. All three major averages are sharply up and look likely to stay that way. Today, at least. (You never know about tomorrow.) Once you’re done here, check out our Final 2020 Dogs of the Dow list right here (link incoming). It became official as the New Year turned.
Stocks blast off Thursday, January 2. Traders, investors celebrate Happy New Year 2020!
We’ve already noted that US stocks are currently cruising in the stratosphere. America’s stock markets seem likely to remain buoyant Thursday, after they looked a bit wobbly late in December, even after December 31st’s encouraging close. I’m convinced that at some point, we’ll see profit-taking this month of a size and mass that could temporarily damage irrationally exuberant stock averages. Not to mention the individual stocks within them.
However, if we’re seeing increasing optimism in the market, that could mean that Mr Market and his investing and trading friends are already pricing in that Phase I China deal. Allegedly that agreement is to be signed later this month. (In all things China, investors should routinely embrace the approach of Saint Thomas to an apparent reality.)
In addition, resources and materials seem to be in uptick mode as well, a bullish sign.
At the moment, the Dow is up 168+ points for a 0.6% gain. The broader-based S&P 500 is up 71+ points at 9044.12 for a 0.8% gain. And the tech-heavy NASDAQ is up 14.42 for a 0.45% gain. No guarantee these numbers will hold up until the 4 p.m. (ET) closing bell. But it’s a pretty optimistic start to the trading day.
UPDATE: AFTER THE CLOSE
Thursday markets actually ended up rather spectacularly. So I decided to include information on the final, fab closing numbers for this Happy New Year 2020 stock market party, as noted in an aftermarket report from Marketwatch.com.
“U.S. stock indexes closed at new record highs on the first trading day of 2020, with bulls building on the best year for the S&P 500 since 2013 after a move by China’s central bank aimed at stimulating the country’s economy.
“The Dow Jones Industrial Average DJIA, -0.67% rose 330.36 points, or 1.2%, to 28,868.80, while the S&P 500 SPX, -0.62% gained 27.07 points, or 0.8%, to trade at 3,257.85. The Nasdaq Composite index COMP, -0.70% rallied 119.59 points, 1.3%, to close at 9,092.20. All three indexes set new record intraday and closing highs Thursday.”
2020 Politics and Mr Market
President Trump, at the moment at least, looks ready to smash egg on the faces (again) of the clueless #Resistance, which augers well for his fate in Election 2020. Which, for all the seemingly universal opprobrium heaped upon The Donald, seems his to lose. At least for the moment.
Even many of the capitalists who hate the President but love his economic and tax policies stated outright that they’ll send him money for the campaign. While at the same time, they threaten not to send the Democrats one thin dime – assuming Fauxahontas becomes the Democrats’ nominee. Interesting.
The Swamp vs Economic Reality
One thing everyone seems to agree upon: If the Dems win the Presidential sweeps this fall, the market will tank. Big time. Double that if one of the Democrats’ clueless socialists wins the nod. Triple that if America’s Stalinists keep the House and take the Senate as well.
On the other hand, I tend not to make outright predictions. Predicting presidential elections in recent years – like predicting Mr Market’s general direction and outcome – is a fool’s game as even some pollsters have learned. And some hedge funds and other assorted funds and investors as well.
Besides, you generally don’t make money on mere predictions, anyway. (Unless you’re a regular talking head on CNBC.) You make money when you place the right bets on the common and preferred stocks of the right businesses.
– Headline image: Stocks blasted off today, perhaps a bit like this image of a Falcon Heavy, SpaceX’s successful booster rocket. (Image courtesy SpaceX website).