“Apple Recovers, Virgin Galactic & Hecla Mining Climb, & Franklin Templeton Buys Legg Mason”

After yesterday’s Presidents’ Day announcement by Apple (AAPL), where they issued a letter confirming that they do not expect to meet its Q2 forecast for revenue pointing to global supply constraints for iPhones and lower Chinese demand as a result of the coronavirus outbreak, it was reasonable to assume that Apple would have a bad day today and the markets might tank too. However, it was not as bad of a day for Apple and the markets as many may have expected, especially if you did not get scared into selling as Apple’s stock recovered over the course of the day to close at $319/share, -1.83% after hitting an early morning low of $314.61/share. Mind you the 52-week low is $169.49/share so if you have been invested over this time period you may not have much of a case to be upset. I guess tomorrow may bring along a different story but today was not terrible. The other FAANG’s results were mixed today. Facebook (FB) closed at $217.80/share, +1.69%, Alphabet (GOOG) closed at $1519.67/share, -.07%, Amazon (AMZN) closed at $2,155.67/share, +.97%, & Netflix (NFLX) closed at $387.78/share, +1.94%.

As for the broad markets, the S&P 500 closed at 3,370.29, -.29%,  The tech-heavy Nasdaq closed at 9,732.74, +.02%. The Dow Jones Industrial Average closed at 29,4232.19, -.56%. The Russell 2000 also moved lower by -.24% ending at 1,683.524.

The “fear gauge” Vix (TVIX) ended at $40.35/share bumping +3.09% and traded in $39.32 – $41.86.

Economic Reports

On Monday we did not receive any significant macroeconomic data as it was Presidents’ Day.

On Tuesday, we received the Empire State Manufacturing Survey for February moved up to 12.9. The NAHB Housing Market Index for February moved lower to 74.

Investing & Inspiration

“The riskiest thing we can do is just maintain the status quo.
I get up at 4:30 in the morning, seven days a week, no matter where I am in the world.
I think it is important for people who are given leadership roles to assume that role immediately.
What I’ve really learned over time is that optimism is a very, very important part of leadership.” Bob Iger, Ceo of Disney

“There are old traders and there are bold traders, but there are very few old, bold traders.”-Ed Seykota

“Let this scenario play out on its own, in its own fashion. As you watch it unfold, you will soon be grateful that you choose the peaceful path. Remember — those who live by the sword, die by the sword.”

“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.” -Jim Cramer

“I rarely think the market is right. I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it.” -Mark Cuban

“Michael Marcus taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.” -Bruce Kovner

“The policy of being too cautious is the greatest risk of all.” -Jawaharlal Nehru

“The only true test of whether a stock is “cheap” or “high” is not its current price in relation to some former price, no matter how accustomed we may have become to that former price, but whether the company’s fundamentals are significantly more or less favorable than the current financial-community appraisal of that stock.” -Philip Fisher

“I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.” -Richard Dennis

“The four most dangerous words in investing are: ‘this time it’s different.” -Sir John Templeton

“Money doesn’t make you happy. I now have $50 million but I was just as happy when I had $48 million.” -Arnold Schwarzenegger

Tomorrow

Tomorrow’s significant economic data report schedule will include the following:

• Producer Price Index for January,

• Housing Starts and Building Permits for January

• The weekly MBA Mortgage Applications Index