Good morning,
Investors may have a case of whiplash after the performance of the stock market in the last few days.
The Dow made a 500 point-plus gain on Tuesday but has a way to go make up the lost ground.
The downturn was hard on DowDuPont. The newly merged company had been riding a wave of optimism after signs that cost-cutting and stronger markets were making their way to the bottom line.
Going along the ride is DuPont spin-off Chemours, which also saw its shares plunge. Chemours shares rose sharply last year as titanium and other markets recovered.
Optimism over the company’s prospects may have been as excessive as the correction.
Some analysts say the company has some running room, especially with the recent downturn.
DowDuPont’s share price for the past three months is still up about 4 percent.
Still, a lot can go wrong when a company is merged and split into three parts.
We also have a global economy that seems to be in sync for the first time in many years.
Lower unemployment rates and signs that wages are finally rising have added to fears of inflationary pressures. There is also the matter of the federal government borrowing nearly $1 trillion.
The downturn was a reminder that unbridled optimism can turn into pessimism. Meanwhile, in early trading today, the Dow was up.
Here’s to a better day for the Dow. The newsletter returns tomorrow. – Doug Rainey, publisher.
