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Afternoon Note

Less Than Anticipated

By Charles Payne, CEO & Principal Analyst
5/6/2019 1:20 PM

The stock market is under pressure, as expected.  The carnage however is less than anticipated when the Dow was indicating to be down more than 500 points at the start of trading.  Ironically, market bears would suggest the urgency to buy the dip is a sign of exuberance.  The fact is, the masses aren’t giddy, but they aren’t afraid either.  They are sitting on the edge of their seats ready to act depending on how the market reacts to this latest hurdle.

Today, the first wave of buying has dissipated, for now, so the focus is on whether the market drifts from here.  On the upside, a move above 26,332 would trigger more buying, which could fuel a major bounce into the close.   A close above Dow 26,677 probably catapults the index to a new record high.

Dow Jones Industrial Average (one-month chart)

A lot of tech names have the greatest exposure to China trade, and this is pressuring tech in general, and making it the worst performing sector in today’s session.  Material and Industrial names are also under pressure.

There are other things going on with the market today, and this week.   There are 59 S&P 500 companies reporting this week, and the Uber IPO, which could be one for the record books.

Don’t panic lads! 

Charles - In your opinion did stocks recover from the near 500 point drop because of the buying in the bond market or the algo trading on the headlines?
Also how much gaming is being done by the Fed when it comes to using their tools to maintain the market "Open Market Operations" - https://www.federalreserve.gov/monetarypolicy/bst_openmarketops.htm

dipak patnaik on 5/6/2019 2:23:24 PM
Charles, once again you hit the FACTS out to ALL on varney show, thank you. We love this firesales gift to pickup a few extra shares before dividends. Do you think DEMS SCHUMER is PULLING a Dems move, acting in tweet to "push China hard president Trump!" SO later dems can use the selloff as President Trump attacks and ruins the market ,costing USA CITIZENS billions of dollars, and backing out changing agreements to add more, so NO ONE WILL BELIEVE USA CONTRACTS!? Just can't TRUST DEMS OR SCHUMER BY THE ENTIRE HISTORY AND MOTIVES ARE TO CAUSE A RECESSION AND BLAME PRESIDENT TRUMP. Thank you Charles PAYNE & FBN. Thank you president Trump. Keep USA growth & IP SUPPORT FROM THEIVES.

J on 5/6/2019 2:56:38 PM
Trump & his trade rep, need to get something meaningful done on the CHINA issue, in the 2Q19. Not sure why he keeps referring to CHINA paying for the tarriffs, cause, those are born by the consumer, and just lead to less economic activity for us all. Hoping, both parties can see it a way to WIN-WIN, where less tarriffs, less market barriers, less subsidies. Just let Capitalism sort out the winners and losers, and each society will be better off, in the longrun....

Richard on 5/6/2019 3:44:41 PM

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