Will it last? Today (May 18, 2020), the DOW gained 900 points spurred on by Fed Chair Jerome Powell's comments on 60 Minutes and Moderna's positive vaccine trial data, showing a rotation from growth to value stocks. “Stay-at-home-in-your-socks” stocks rallied hard off the bottom; companies like W, COUP, MDB, OKTA, ZM, CHGG, & TWL gave way to gains in CAT, URI, DE & others.
But will the up-trend continue?
This NYTimes article says “Yes!”: “trading on Monday had all the characteristics of a rally focused on the prospects for a return to normal.” Let’s hope they are right … normal sounds wonderful.
In a bit of more good news, it was great to see that FedEx Corp. (FDX) and Microsoft Corp. (MSFT) are gettin’ married! I can’t think of a more attractive couple.
This power couple will “help transform commerce by combining the global digital and logistics network of FedEx with the power of Microsoft’s intelligent cloud.” John Klyce of BizJournal writes “FedEx has been reimagining the supply chain since our first day of operation, and we are taking it to a new level with today’s announcement.…Together with Microsoft, we will combine the immense power of technology with the vast scale of our infrastructure to help revolutionize commerce and create a network for what’s next for our customers.” That’s a union I can applaud.
We don’t have answers about what’s going to happen with the market or the economy, but optimism and Fed action like we saw today is a great sign.