Stocks Get Bear Market Bounce: Masimo, Adobe Hold Up, Tesla Reverses | Summary and Q&A

TL;DR

Despite a historically bad week, the stock market rallied on Friday after Trump's press conference and Vice President Pence's announcement of measures to combat the coronavirus. Massimo, Adobe, and Tesla showed gains, but caution is advised as it remains a bear market.

Key Insights

• 🧔 The stock market rallied on Friday due to positive news regarding coronavirus measures, but caution is still advised as it remains a bear market.
• 🧔 Massimo's performance during the bear market is notable, as it specializes in tests that are relevant in fighting the coronavirus pandemic.
• 💪 Adobe's strong gain can be attributed to its strong earnings and relative strength, making it a stock to watch during a market turnaround.

Transcript

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Questions & Answers

Q: What caused the stock market rally on Friday?

The rally was triggered by positive news from Trump's press conference and Vice President Pence's announcement of measures to combat the coronavirus, boosting investor confidence.

Q: Why is Massimo performing well during the bear market?

Massimo specializes in tests that measure a patient's oxygen levels, making it a relevant player in the fight against the coronavirus. Its strong fundamentals and long-term leader status contribute to its performance.

Q: What contributed to Adobe's strong gain?

Adobe reported strong earnings, with a 33% increase, although sales growth slightly decelerated. Its skyrocketing relative strength line and re-taking of the 200-day line also contributed to the gain.

Q: Why did Tesla close down despite its recent rise?

Tesla's decline can be attributed to concerns about the impact of the coronavirus on auto sales worldwide. The closure of its Fremont and Shanghai plants is causing uncertainty about future production and demand.

Summary & Key Takeaways

• The stock market rallied on Friday, with the Dow closing up over 9% after negative headlines throughout the week.

• Massimo, a company with tests that measure oxygen levels in the blood, showed a gain of 3.9% and has been performing well during the bear market.

• Adobe reported strong earnings and a gain of almost 18%, while Tesla closed down 2.5% and broke its 10-week line.