Markets rallied 2.5% to 2.7% after Trump backed off firing Fed Chair Powell and the Treasury signaled progress on China trade talks. Tesla missed earnings but stock jumped 4% after-hours; Capital One beat with $4.06 EPS from strong credit-card business.
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Alright, so here's your money recap for today so you know exactly what is going on in the markets. So after the markets dropped yesterday, the markets came back swinging strong. The S&P 500 jumped 2.5% and the Dow rose 2.7% and the Nasdaq also rallied 2.7%. So yes, the bounce back was real and it was good. So here's why. Okay, so Trump pulled on his threat to fire Federal Chair Jerome Powell, saying that he actually does not plan to remove him at all. That little walk back calmed the markets real quick. Plus there's some good news out of DC, my hometown, and that is the Treasury Secretary hinted that progress is finally being made on this whole US-China trade talks, and that helped boost investor confidence a lot. Now let's talk earnings. First up, Tesla. So their Q1 numbers missed the mark. Their revenue was $19.3 billion and the profits actually dropped 71%, but Elon did say that he's stepping back from politics to refocus on Tesla, and investors really like that. So the stock actually popped over 4% after hours. Now Capital One also came through with their strong earnings, and profit was up, actually beating expectations at $4.06 per share thanks to a boom credit card business, even though charge-offs rose to $2.74 billion. And we're not done yet because this week we still have Chipotle and American Airlines and a bunch of others all dropping earnings. So please make sure that you stay tuned because this week is not slowing down at all. And the bottom line, as always, is that the markets are moving fast. They always have and always will, but If you stay plugged in, you can move a lot smarter. And then make sure that you follow me for daily recaps that actually help you to build wealth. And if you are serious about securing your bag no matter what is going on in the economy, you can comment "ready" and I'll send you my recession-proof Your Money Masterclass to help you get all your finances right no matter what is going on in the market. See you soon.
