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The stock market may have been ravaged by coronavirus fears, but despite the gloomy situation overall there can be bright days.
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A Bright Day in the Overall Volatility of the Stock Market The stock market may have been ravaged by coronavirus fears, but despite the gloomy situation overall there can be bright days. Despite the overall gloom, there can be bright days in the market. Favorable opinions by analysts and great performances by some stocks can make the difference. This is something you learn when you do direct market access trading. A Day for Bullish Investors to Remember There were various factors that caused volatility in the US markets on Wednesday, March 4, but overall, bullish investors had their day. Super Tuesday’s results made the situation upbeat, though fears about the coronavirus outbreak persisted with more cases being reported in the United States. The Fed announced rate cuts on Tuesday, and the Nasdaq Composite soared by 4% while the Dow Jones Industrial Average (DJIA) rose by 3% on Wednesday. www.tradezero.co+1.954.944.3885
Two stocks that were upbeat were General Motors ($GM) and Cronos Group ($CRON). General Motors had an ace up its sleeve with new battery technology that could help it take the fight to Tesla ($TSLA). Cronos benefited massively from a favorable view given by analysts from Wall Street. General Motors’ EV Presentation Instilled Confidence For General Motors, it had to take on a seasoned player in the field – Tesla. The presentation therefore had a lot to live up to, but GM managed to impress. Mary Barra, the company CEO, mentioned that GM is planning to set apart capital worth over $20 billion for autonomous and electric vehicle (EV) programs. There are many engineering resources as well that the company plans to channel towards developing electric vehicles. It plans to sell 1 million EVs in the North American and Chinese markets each year by around 2025. Raised Rating Gives Cronos Group a Break Cannabis company Cronos Group received favorable remarks from prominent analysts who raised their rating on the company to “buy” from “neutral”. That caused a break in the stock plunge of the company. In fact, there was big drop the previous day fueled by the news that the company’s annual report release would be delayed. But the analysts considered that the annual report delay was caused by some issues with its bulk cannabis wholesale business. That isn’t important, they believe, because the wholesale business isn’t the major performance driver for the company. According to the analysts, the relationship of Cronos with the Altria Group ($MO) is providing it with a strategic advantage that could prove to be useful. Still, they slashed their price target to 11 Canadian dollars per share from 12. Even though it had a move higher, the company still lost over three-quarters of its past year’s value. Motley Fool’s Dan Caplinger reckons that there is more positive news needed for restoring confidence in the company and the marijuana sector overall. Look out for such great instances of bright days in gloomy periods. No matter how volatile the situation could be, things can unexpectedly get brighter which is what you learn in online stock trading. www.tradezero.co+1.954.944.3885
