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Well happy july subscribers hope you guys are doing great out there as always stocks absolutely skyrocket today in a massive massive way but if you don’t know where to look you might not have seen the ridiculous gains that happen in the market today okay so if you’re just simply looking at the indexes you’re not gonna see a heck of a lot okay you’re gonna look at
It dow jones today up a hundred points and you’re gonna say to yourself okay what’s the big deal with that a hundred points that’s like nothing the market usually moves a hundred plus points on a given day like that’s nothing right so where are these stocks that are soaring you then you see the s&p 500 had a respectable day today up about point eight three
Percent but that is certainly nothing crazy and that wouldn’t constitute as stock soaring and then you look at the nasdaq and you see for sure that nasdaq 100 had the best day of all three of those indexes up 1.3 percent so you see that and you’re like that’s really strong performance 1.3 percent that’s impressive but where are these stocks that are soaring let
Me show you some of these stocks that have absolutely gone crazy and keep in mind this is just a small amount of the stocks these are ones i either own or i track on a daily basis okay and there’s a massive amount of stocks that went up massively today okay and keep in mind none of these stocks had anything to do with earnings coming out today or anything like
That skyworks solutions my second biggest investment went up 6% today huge move no news came out in relation this guy worked as far as any press releases from the company or anything like that but up 6% today ok cirrus logic up nearly 3% today they’re an audio chip supplier okay alibaba my fifth or sixth biggest investment went up 3.3% today on a day when the dow
Was up point four percent now alibaba didn’t come out and announce any news today so why the heck did that stock move up so big home at home was up over six point three percent today massive day from one of my newest investments out there kay wynn resorts was up nearly six percent today wynn resorts obviously has you know huge casino resorts all over the world
They have many in macau they have some in my city las vegas and they have a new one they just opened out in boston stock up nearly six percent today like that’s ridiculous no press release from came out from wynn resorts i was like oh we had great earnings or some type of good news or something like that in the stock went up 6% today okay micron ticker symbol mu
This is one of the best performing stocks last week okay the stock was like thirty to thirty three dollars a share last week and by the end of the week it was 38 and now we’re looking at stock over $40 a share today up four percent today and micron if you guys didn’t know is one of the biggest memory chip suppliers out there dram nan they’re a huge player in those
Markets so you see those type of performances and you see the market was just okay and you got to ask yourself why are some of these stocks absolutely soaring like crazy today they didn’t come out with earnings they didn’t have any press releases around good news and yet so many of these stocks went up in a huge huge way today specifically when the market was just
You know a decent day out there why did this happen okay well two different reasons okay the first one has to do with a company named whole huawei okay and if you don’t know this is a hole always a massive massive company out of china one of the biggest companies out of china they provide phones they provide telecom solutions and whatnot massive massive company
Huawei is essentially they were in the news for some really bad things recently okay so on may 15th specifically the president united states donald trump effectively banned hawawa with a national security order basically meaning that no one could do business with hawawa that was a us company okay think about all the different chips that are in a smartphone right
That are in a huawei device well many of those chips inside that huawei phone are provided from us companies now us companies overnight we’re not allowed to do any more business with hawawa so if you’re any type of chip supplier whether you’re providing them memory whether you’re providing them audio solutions whether you’re providing them with the processors the
Connectivity chips it doesn’t matter across the board what you are providing for all way with you cannot do business with them if you are a us company and that was huge because so many companies out there get 10 plus percent of their revenue and profits from halawa so when a company like that is banned overnight if you do business with them you basically just like
Lost 10 percent of your revenue and 10 percent of your profits over and this was a huge deal okay and so when you see stocks like skyworks solutions up today 6% when you see a stock like micron up 4% today these type of stocks had gotten absolutely slammed over the past month and the reason was all of these businesses microns the skyworks solutions got more than
10 percent of their business from hawawa so if huawei getting banned was just a very very negative thing for their businesses okay and then you see them go up huge day and why is this well your today trump officially says he has eased the hawaa way restrictions only applies to widely available products as of right now you know the question is what constitutes
As a widely available product so basically what this means now is american companies can start doing some business with huawei again for widely available products so it is definitely a confusing situation because if you’re a let’s say you’re a chip supplier to huawei you got to ask yourself like like what can i provide chips for it is as product over here this
Sells a million units is this a popular enough product that i could actually start selling my chips into them or what if it does ten million in volume does that then constitute as a product that is widely available enough and i can actually provide chips into so it’s a very confusing situation but needless to say it is definitely definitely definitely a positive
For a massive amount of semiconductor companies that do business with whole huawei because they basically win from 10 percent well all these companies had ten or fifteen percent of their revenues and profits coming from huawei it went to zero overnight and now with this band being somewhat lifted the question is like maybe they can get 5% of that business back or
Maybe they can get their full 10% of revenue back from that customer or maybe they can get 15% if they were all the way up to those type of numbers guys so neither doesn’t say it’s great news for a lot of these semiconductor companies the question is how great of news it is but needless to say with stock price moves like that guys very very good news okay well more
Good news came out of president trump’s twitter last night and this is also what helped a lot of stocks okay said i had a great meeting with president xi of china yesterday far better than expected i agreed to not increase the already existing tariffs that us companies pay while we continue to negotiate and then he goes on to say china has agreed that during the
Negotiation basically china will start to purchase large amounts of agricultural product from us farmers and whatnot so needless to say this is definitely a move in the right direction in regards to the trade war because that has gotten really ugly over the past few months guys and so if you think about this if if a trade deal can get done that would obviously mean
Great things for china in us relations that would be great for obviously us and china business okay because of right now with this whole trade dispute situation with the tariffs it is not good for either side almost every single us company in the entire world that does business with china their earnings are being hurt right now this is pretty much not a company
I can find that does business in china and their earnings are not down year-over-year or at least significantly hurt the companies that are actually doing okay or the companies that basically don’t do any business with china you know companies like facebook companies like google some of those massive companies that basically we’re never allowed to be in china some
Of those businesses are still thriving but a ton of the actual chinese businesses have been hurt dramatically okay so needless to say it’s a step in the right direction this chart shows you how much revenue exposure some of these companies have in relation to how much revenue comes from china essentially okay you see humm china obviously a hundred percent you see
A company like i bought recently wynn resorts seventy five percent of their revenue comes from china cuervo huge semiconductor supplier at seventy four percent of their revenue coming from china qualcomm one of the biggest semiconductor companies in the world and probably wanted going to be one of the biggest companies when it comes to 5g sixty-seven percent of
Their revenue comes from china micron 66 percent las vegas sands with all their casino resorts over there in china okay 62 percent nvidia 53 percent broadcom 49 percent so company after company get massive amounts of their revenue and profits from china and if you look at what those stocks did today like you could pretty much go down that entire list and almost
Every single stock that i just said was up 3% 4% 5% 6% you saw a company like alibaba massive chinese conglomerate right look at their stock today up three plus percent on a day when the market was you know point four percent or whatever you need to say this is a step in the right direction and the question is what is next and that’s obviously the big question we
Have to ask ourselves because if we just go back in time let’s go back in time about two months ago it was looking like you know two two and a half months ago was looking like oh a trade deal is probably gonna get done this is gonna be great for corporate profits this is gonna be great for us and china relations and oh my gosh the stock market’s gonna go roaring
In the second half of the year and then all of a sudden two two and a half months ago that the situation got far worse okay and next thing you know it was like oh tariffs are gonna go way up in china wanting to fight back and it’s just it’s just a bad situation in every single company that’s an international company has been hurt significantly by this so the
Question is what is next and in my opinion a trade deal is probably going to come sometime soon to mean between the next one in three months and in my opinion trump wants to get this done before the election i don’t think he wants us hanging over the election especially the way so many farmers have been hurt he’s counting on a ton of those folks you know farren’s
And family members to go out there and vote for him so if i’m looking at this i think trump really wants to get a trade deal done asap because if he doesn’t get a trade deal done and things are getting ugly and the economy is getting worse then all somewhere in a situation there’s obviously not good for a reelection usually if somebody doesn’t get reelected many
Times it’s because the economy’s not doing good so you want the economy as strong as possible going into every election and you want things as certain as possible going into a reelection so if i’m looking at this i’m thinking and trade deals coming and i think the markets are already starting to price this in so if you’re thinking oh let me wait for a trade deal to
Come in my opinion by that time the the trade deals already priced in and honestly when i look at things right now a lot of the trade deal if it does get done is already prices in the market nevermind the week’s progress if the market continues to go up and go up i think a lot of whatever happens if a trade deal does get done will already be priced in the market
So if you’re hoping like you know a month from now or two months from now is going to come out trade deals done massive trade deal between china in the u.s. oh my gosh this is this is so great in you think oh my gosh the stock market is gonna roar like crazy a lot of it will probably already be priced in and that happens a lot in the stock market whether we’re
Talking about stock market as a whole or we’re talking about specific stocks a lot of times people expect there to be a huge move on some type of news but it’s already been priced in guys and that will probably be what happens in this situation so anyways hope you guys enjoyed this video as always make sure if you’re interested in joining my private stock market
Membership group that is linked down there in the description we would love to have you in there guys make sure you smash that thumbs up button if you enjoyed today’s video thank you for watching and have a great day
Transcribed from video
STOCKS SOAR HIGHER TODAY! BUT WHY? By Financial Education