Volatile Week Marked by Trump Recovery, Stimulus Updates

Plenty of blue chips made headlines this week as well

Deputy Editor
Oct 9, 2020 at 2:07 PM
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This week was a testament to how U.S. President Trump's tweets affect the market, as stocks saw massive swings based on his coronavirus recovery as well as stimulus updates. To start the week, stocks soared after it was announced that the President would be discharged from Walter Reed National Military Medical Center later that evening. The next day, however, stocks pivoted lower after Trump announced that the stimulus package being debated in congress would be put on hold until after the presidential election. Come Wednesday, sentiment changed course after Trump called for an airline stimulus bill, as well as a second round of $1,200 stimulus checks. This positive news carried the stocks higher into Thursday, brushing off worse-than-expected jobs data, though gains were trimmed after House Speaker Nancy Pelosi announced that there would be no stand-alone airline support without a greater stimulus package. To wrap up the week, all three indexes are on track for weekly gains, and investors await further stimulus and coronavirus vaccine news. 

Energy Stocks Making Headlines

The week started off with news on Exxon Mobil (XOM), after Bloomberg reported that leaked internal documents revealed the blue-chip oil producer plans on increasing its annual carbon-dioxide emissions, while sector peers Shell and BP commit to curbing emissions. On the other end of things, renewable energy has been highlighted recently, due to former Vice President Joe Biden's run for U.S. President, given he and his running mate Kamala Harris' focus on the subject. Sunpower Corporation (SPWR) and Enphase Energy (ENPH) have both been climbing on the charts to reach record highs

Blue-Chip Movers and Shakers 

Shaking things up in regard to their beverages, Coca-Cola (KO) announced that along with reviewing various drinks, they will be discontinuing its Zico coconut water brand. Speaking of Coca-Cola, one of its long-time partners and fellow Dow stock McDonald's (MCD), could continue its climb on the charts.

Meanwhile, the only Dow stock to make it to Schaeffer's Senior Quantitative Analyst Rocky White's list of the best 25 S&P 500 (SPX) stocks to own in October over the past 10 years, Johnson & Johnson (JNJ) could be a good play for options traders. Lastly, bank stock JPMorgan Chase (JPM) announced long-term commitments to helping underserved communities

Looking Ahead Amid Uncertainty

Next week will bring plenty of economic data for investors to sift through, as well as the unofficial start to another earnings season, with several banks giving their quarterly reports. On top of that, Dow names Johnson & Johnson (JNJ), JPMorgan Chase (JPM), UnitedHealth (UNH), and Walgreens Boot Alliance (WBA) will report earnings.

In the meantime, check out this breakdown of two weekly sentiment polls. In it, Schaeffer's Senior Quantitative Analyst Rocky White discusses the divergent attitudes between the weekly sentiment surveys conducted by Investors Intelligence (II) and the American Association of Individual Investors (AAII). 


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