WTF Just Happened — Yeah, I'm asking myself the same question. Stocks staged a massive comeback yesterday, finishing with the steepest gains since "BTFD" became a full-on movement back in March of 2020.
To sum it up, sh*t was wild. It's not often we live through days that seem as diametrically opposed to ongoing themes as yesterday, so let's enjoy it while it lasts.
Basically, everyone forgot about the macro picture and instead looked at valuations and decided things had fallen enough (for now). The risk-on trade worked like a charm, with the Nasdaq up almost 3.6%, $ARKK up 5.2%, and digital currencies ripping (more on that below).
Oil futures sank a ton, with American crude back below $110 and Brent sitting at $112.50. The story is that nations like the US and especially the UAE were forcefully pushing for OPEC and OPEC+ to drastically increase global supply in response to Russia's scumbag invasion.
Treasuries, meanwhile, largely fell across the board. The US 10-year climbed across 1.9% again (recall, yields rise when prices fall), and global yields rose alongside.
Equity indexes, however, were where the real fun was at… as always. Dip buyers stormed on the scene, especially abroad in places like Germany, where the nation's equivalent of the S&P 500, the DAX, gained 7.92%.
It could be that investors are starting to see the Russia-Ukraine conflict as a short-term (yet horrific) conflict that may only impact global economies for a short time. Or, it could be that Mr. Market decided he doesn't like the color red anymore and needed a change.
Either way, unless your all-in on oil and oil only, your portfolio was up yesterday. Congrats, kings. Let's keep it that way.
Join the Crowd — Always full of surprises, Amazon has never been a stranger to hyping people up. And yesterday, Jassy and the whole crew did exactly that.
Following behind Google, Tesla, and even Apple, Amazon yesterday announced a 20-for-1 stock split incoming along with a $10bn share buyback program. In what Bloomberg has termed the "big tech blueprint," the move will allow us, retail traders, to buy more than 0.62 shares in the firm while also increasing liquidity in trading.
It's nothing major and really has zero indication of performance. But man, do retail traders love a stock split, sending $AMZN up 11% after hours. And sure, a $10bn stock buyback program sounds great. But, Amazon's market cap is a monstrous $1.4tn, making $10bn ~0.7% of the float.
In reality, this could be construed as a negative for the firm. A bear might argue that there's a hell of a lot more the great Amazon could have done with that cash than just buy back shares. Still, the Street is freaking out about it, so we figured we had to tell you. You're welcome.
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