Stocks Rebound on President’s Health

The stock market is up this morning on news of President Trump’s improved health and hopes for a stimulus bill. The S&P 500 has been up as much as 1.5% today.

Sadly, the president’s health can be a concern for the stock market. In 1955, the market plunged on news of President Eisenhower’s heart attack. That was the single-worst day for the market between the Fall of France in 1940 and the 1987 Crash — a span of 47 years.

This morning’s ISM Services report showed an increase to 57.8. This is good news. Whenever the number is above 50, it means the sector is improving.

The cyclical sectors are leading the charge today. Energy, Materials and Finance are up the most. Shares of Cinemark, a former Buy List stock, are down 18% today.

Posted by on October 5th, 2020 at 11:55 am


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