July 29, 2020, 12:58 pm EDT
Stock Market News: Fed, Checks and Kodak
Fed, checks and Kodak are three important factors to keep driving the stock market higher regardless all negative news about the economy, jobs, and virus.
- Fed: Chairman Jerome Powell will conclude its 2-day FOMC meeting today. It is likely and expected that the Federal bank will keep its attitude on “whatever it takes” to save the US economy. It means lower interest rates, loose monetary policy and more money to the capital markets.
- Checks: Congress also will discuss another round of stimulus packages, including another $1200 checks for adults and $500 for a child and extension of unemployment checks, previously $600 per week.
- Kodak: KODK is +330% today to 34 as of now. Compared to 2.6 two days ago, it is more than 10X return. Trump gives loans of more than 700 million to once-bankrupt traditional filmmakers to get into drug ingredients makers. The purpose is to shift back the drug industry from China to the US. Also, it creates jobs in the US.
Based on these facts, it is easy to understand why stock markets are up again: DJIA +100 points as of now. Retailers (LB +33%, GPS +8%), restaurants / drink (SBUX +4%), hotel (MGM +4%) and healthcare insurance (UNH +3%) are up may be benefited from these reasons.