Archives for May 2020

May 2020 - Page 5 of 13 - Money Morning - Only the News You Can Profit From

Dow Jones Pops 300 Points on Hopes for Economic Recovery

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The Dow Jones is climbing today despite an expected 38% decline in GDP for the second quarter.

Investors still have hope for recovery as several states work to reopen their economies.

This morning, Lowe's Companies (NYSE: LOW) reported quarterly results.

Investors cheered news that homebuying rebounded nicely after the COVID-19 scare.

Weekly mortgage applications came in just 1.5% lower than this point last year, a massive recovery from one month ago, when applications were off 35%, year-over-year.

Read more...

It's Smart to Enjoy the Bull Parade Even with Economic Rain Clouds Ahead

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The rally we've seen the past few weeks sped up Monday, with the Dow gaining more than 900 points – even though we had two investing legends say last week that things were looking bad for both the stock market and the economy.

That's this week's Reality Gap. Let me explain…

As you saw me saying last week on FOX Business Network's "Varney & Co." and on our own Markets Live livestream, the Fed's and Congress's financial stimulus allowed traders to move markets up above the key support levels recently and pushed them up big time late on Friday.

Then Fed Chair Powell appeared on "60 Minutes" Sunday night. Two quotes from the Fed Chair were particularly important in driving the market's reaction.

First, he said he has plenty of ammunition left if more stimulus is needed, showing that the Fed is not "out of ammunition" to fight further economic downturn: "There's really no limit to what we can do in lending programs."

The second was that the economy could recover over the second half of this year. It was an intermediate-term pronouncement on economic possibilities: "Assuming there is not a second wave of the coronavirus, I think you will see the economy recover steadily through the second half of this year."

Then on Monday morning, biotech firm Moderna Inc. announced positive results from its early trial of an experimental vaccine against COVID-19. This phase 1 study looked only at safety, and there were no significant side effects among the patients. But the fact that all the patients in the small dose vaccine subset developed antibodies the same as a recovering COVID-19 patient really stoked the stock markets.

The mood, in other words, is bullish. (Cue The Beach Boys' "Good Vibrations!")

It's so bullish, in fact, that headlines are starting to leave out some nuance that I don't want you to ignore… Full Story

It's so bullish, in fact, that headlines are starting to leave out some nuance that I don't want you to ignore... Full Story

Markets Live Recap: Why Stocks Gave Back Nearly Half of Yesterday's Rally

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Stocks failed to build off the positive momentum that fueled the rally yesterday.

Yesterday, Moderna Inc. (NASDAQ: MRNA) posted positive coronavirus vaccine data and U.S. Federal Reserve Chair Jerome Powell announced the Fed would digitally add more money to the system as needed.

Today, reality struck back.

Morderna announced it would be raising $1 billion of new stock to take advantage of its 20% surge yesterday.

The stock dropped 10.4% today.

And you can add Howard Marks to the list of billionaire investors who think this market is overvalued after he said these "artificially supported" markets will fall when Fed aid slows.

Consider his remarks another blow to the credibility of Jerome Powell.

Overall, the Dow fell 1.6%, the S&P 500 fell 1% and the Nasdaq dropped 0.5%.

Here's what our experts – Chris Johnson and Shah Gilani – saw at the open and close of today's trading session.

Read more...

The 3 Best REITs to Buy Now Are Nearly Recession-Proof

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We've heard a lot of doom and gloom around REITs since the pandemic shut down the economy.

Some of it is justified, of course.

But the storage real estate market is nearly recession proof.

Today, we'll show you the three best REITs to own there, all paying dividend yields over 5%.

Best of all, the indiscriminate selling has pushed these REITs back down to levels that are attractive buy points for long term investors.

Read More…

Best Options to Trade on Robinhood Turns Volatility into 300% Gain

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You don't have to be a professional trader to grow your wealth using options.

In fact, trading options can be quiet simple with the right guidance.

The real problem for individual investors is knowing what to trade, so it is a good idea to have a trusted mentor to guide you.

That's why we're here.

Our experts sift through mountains of data to find options trades that have high probabilities for success and are still easy to do.

And when you trade options on free platforms like Robinhood, you'll be on your way to big paydays without adding too much risk.

Today's trade offers 300% upside...

Dow Jones Flat After Weak Earnings Report from Home Depot

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The Dow Jones is off this morning as investors turn to the latest rounds of earnings reports across the country.

On tap, keep an eye out for the latest numbers from Walmart Stores (NYSE: WMT) and Home Depot (NYSE: HD).

Plus: See how far can the airline industry fall in the COVID-19 crisis?

Read on for everything moving the Dow today.

Read more...

How to Invest $2,000 Right Now

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"The journey of a thousand miles begins with a single step."

– Chinese proverb attributed to philosopher Laozi

With all the COVID-19 whipsawing we're experiencing in the U.S. economy – and the uncertainty that's created for folks like you and me – Money Map Press is seeing more direct inquiries about stocks than at any time since the Great Financial Crisis of 2008 to 2009.

And one of the most intriguing queries we're seeing is this one: "I have $2,000. I want to invest it in stocks. But I'd sure be grateful for some guidance on which stocks to buy and what 'strategy' to employ."

Let me tell you folks: I love this question.

And I respect the heck out of those who posed it, or who were thinking along those lines, for a few reasons…

For one, you're ignoring the near-term "noise" and are focusing on the long term.

Second, you're taking action – and taking control of your own financial destiny – which is always one heck of a lot better than just sitting back and letting stuff "happen to you."

And, finally, it can be a difference-maker. That two grand is merely the first step. But it shows that you're serious about changing your future. It puts "skin in the game." It forces you to pay attention. And you'll be stunned at how much you learn.

It takes courage to act, to make tough decisions, to move forward.

And by posing this question, you're doing just that.

Just as a long journey can start with a single step, the journey toward a secure financial future can begin with a single investment – even one as seemingly small as $2,000.

And I'm going to start by sharing a personal story that proves the value of a "mere" $2,000 investment. I'll even offer some stock recommendations that will help you take that first step… Full Story

And I'm going to start by sharing a personal story that proves the value of a "mere" $2,000 investment. I'll even offer some stock recommendations that will help you take that first step...

Markets Live Recap: Dow Surges 900 Points as Investors Cheer Potential Coronavirus Vaccine

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Stocks had their best day since April as investors were optimistic that an effective coronavirus vaccine could soon be on the horizon.

U.S. Federal Reserve Chair Jerome Powell also made some long-term bullish predictions for the U.S. economy, saying the Fed will print as much money as it needs in attempts to solve any short-term problems.

The Dow closed up, 3.8%. The S&P 500 gained 3.1%. And the Nasdaq was up 2.4%.

Here's why our experts - Chris Johnson, Tom Gentile, D.R. Barton, Jr., and Shah Gilani - aren't buying it...

The 5 Best High-Yield Dividend Stocks to Buy in This Bear Market

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High-yield dividend stocks typically carry some risk, but the devastating impact of the coronavirus on the economy has upset an otherwise sound strategy.

Many companies that were thriving before the crisis have trimmed or suspended their dividends – including such top names as Disney.

That means income investors are on the hunt for companies least likely to cut payouts as this crisis plays out.

And we've got five top picks to get you started...