🍨 Daily Scoop: A few silver linings

The Fed cut the interest rate and the stock market lost interest. Say what?

August 1, 2019 The Daily Scoop What you need to know? Cut, cut, cut... Oh, you did cut the interest rate?! Meh, not interested anymore. Sell, sell, sell... That was pretty much the state of the stock market on Wednesday. Aside from the interest rate cut news, as always, we've got the market's highlights for you. From more than 60% stock price decline to disappointed millennial investors, we have them ready in the "What's up?" and "What's down?" sections. Scroll down to read about which companies moved the stock market or made the most noise on Wednesday. Markets S&P 2,980.38 -1.09% Nasdaq 8,175.42 -1.19% Dow 26,864.27 -1.23% 10-yr 2.015 -0.047% Gold 1,426.30 -0.81% Oil 57.92 -1.13% *as of market close U.S. markets: The gloom from Tuesday crept into Wednesday and dragged all three major indices lower than where they started the day. Scroll to the Overall Market section to read more about what happened. Cryptocurrency: Bitcoin's price moved slightly higher than $10,000 per coin. However, the coin is on track to post its first monthly loss since January. Sponsor [Revealed] $50 Marijuana profit sharing plan There's a one-of-a-kind marijuana profit-sharing plan that could quickly have you sitting on $17,667, $25,921, $38,898, or even $55,563. And possibly a whole lot more. The company that created the plan is legally obligated by the U.S. Federal Government to send you profit-sharing checks for as long as you stay a member. But you must take action today. Get the full details here now. Overall Market Didn't you say to cut the interest rate? What happened on Wednesday? The Federal Reserve did it. After 10 years of slow but steady growth, the interest rate cut came, and the stock market hated it. All three major indices lost more than 1% of their value on Wednesday. I bet you the Feds are scratching their head in disbelief while murmuring how delightfully entitled the stock market can be? Now What? Some attribute the decline in the stock market to the fact that the Fed's Chairman initially closed the door for additional cuts in the coming months. Also, don't forget that almost all of the trades in the stock market are managed and initiated by algorithms. Therefore, regardless of what investors feel, the algorithms follow their own patterns. The decline may not be entirely due to the news of the interest rate cut. Don't be too surprised to see such a drop after seemingly positive news. What's Up These stocks had a good Wednesday. So what happened? Investors in CannTrust (Ticker: CTST) are seeing some light at the end of the tunnel. Earlier in the week, the board terminated the CEO's tenure. And, on Wednesday, the company announced that it is exploring selling itself or other strategic alternatives. The investors liked this new direction, and the stock jumped more than 9%. The next good news and stock price pop came from cannabis-associated stock Scotts Miracle-Gro (Ticker: SMG). The stock price jumped around 10% after the company announced better than expected revenue growth boosted by higher demand from legal cannabis production. What's Down These stocks didn't have a good day. If you thought 16% decline on Tuesday was the full story for 2U Inc (Ticker: TWOU), you’d be mistaken. The stock lost a whopping 62% of its value on Wednesday. The enormous decline of this magnitude is rare. But when the CEO of a company talks about slashing the number of new customers by more than half, investors have nothing to do but run for the hills. Where is that little Fitbit (Ticker: FIT) wristband you once had and competed with your friends over the number of steps? If it is somewhere in your desk drawer, collecting dust, you are the reasons for Wednesday's double-digit decline in Fitbit's stock price. Well, you and maybe a million other people, as well as the company's lowered forecast during the quarterly earnings, are all the reasons behind the decline. For some reasons, millennials love chipmaker AMD (Ticker: AMD). But, on Wednesday, the company disappointed its millennial investors and the stock plummeted more than 10% after the company revised its forecast downward. Water Cooler One billion gym-goers. So, what happened? Can you believe there are one billion gym-goers on this planet? Well, not so much human gym-goers, rather Pokémon GO gym goers?! Fooled ya! Apparently, one billion people have played Pokémon GO since its launch three years ago, and you know what would a Pokémon love to do the most? Going to the gym and fighting other Pokémon. Disclosure: Authors of this Scoop own shares of 2U Inc (Ticker: TWOU) and CannTrust (Ticker: CTST). About the Author Brought to you by Hoda Mehr, Editor at Trade Stocks, CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 8,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism and storytelling to all aspects of her work. Subscribe for free here. Feedback We want to hear from you. How are we doing? Please do us a favor... reply to this email and let us know a.) which sections you like the most and b.) what you would like to see more of. We appreciate your feedback. Copyright © 2019 Trade Stocks Our address is 580 Broadway Suite, Laguna Beach, California 92651 If you do not wish to receive future email, Click here to opt out. (You can also send your request to Customer Care at the street address above.)