Why Is Black Friday Called Black Friday?

Why Is Black Friday Called Black Friday?

In terms of the financial markets, a black day isn’t considered a good thing. The media used terms like Black Monday for the 1987 crash and Black Tuesday for the 1929 market crash. So why is Black Friday called Black Friday? The term is not there to remind us of a significant market downturn but to get the consumer to open their wallet.

The Friday after Thanksgiving become known as Black Friday because of the large volume of shoppers, car accidents and sometimes violence. The shopping holiday has become one of the most profitable days of the year. When you’re making a profit, you’re “in the black” and if your losing money you’re “in the red.” This comes from accountants using black ink to indicate profit and red ink to indicate a loss. 

The popular shopping holiday is quite dangerous, especially at Wal-Mart. Despite retailers’ best efforts to keep the meaning of the day positive, it’s associated with violence and mass consumerism. Are the deals so good that they are worth getting hurt or possibly killed for? 

Despite all the brawls, shootings and folks getting trampled to death consumers are still will to risk it for the once in a year savings. 

Luckily, if you love getting a good deal but don’t want to participate in the most crowded shopping day of the year you can wait for Cyber Monday. The Monday after Thanksgiving become a shopping holiday in 2005 thanks to the website shop.org. 

The stock market will be closed on Thursday the 28th for Thanksgiving and open until 1 pm eastern on Black Friday. 

Tesla Unveils the Cybertruck 

The electric automaker Tesla unveiled the all-electric pickup called the Cybertruck. The futuristic, trapezoid, DeLorean looking vehicle blew up the internet. The design is very unique, to say the least, and most people aren’t feeling it.

The presentation was a bit awkward especially when the shatterproof windows, well, shattered during a demonstration.

The Cybertruck is reasonably priced at $39K and features a cargo bed that can hold and charge an electric ATV. The pickup is expected to be available in 2022. 

Is the U.S. and China Really Close to a Trade Deal?

For almost two years we are frequently reminded how well trade talks are going. This week a tweet from Eunice Yoon came out that tells a different story than our president. The tweet stated the mood in Beijing about a trade deal is pessimistic according to government sources. 

The strategy is to talk but wait due to impeachment hearings and the U.S. election. The elections are 12 months away, that doesn’t sound like we will be seeing any significant trade deal soon.

However, Trump has continued to tweet optimistically about how close they are to sign the phase 1 deal. A complete deal seems to be further and further away, but the algo driven market continues to pump on every Trump and Kudlow tweet.

  • Feb 28th Kudlow claims trade talks made “fantastic” progress.
  • April 3rd Kudlow states “good headway” was made and the U.S. and China will “get closer to a deal.
  • October 4th Kudlow predicted there will be some “positive surprises” out of the most recent round of China trade talks.
  • October 11th Trump said the U.S. has come to a phase one deal with China.
  • October 17th Kudlow said there is a “lot of momentum” to finish a trade deal. 
  • October 18th Trump said he hopes the trade deal will be signed by mid-November.
  • October 21st Trump said the trade deal is coming along “very well.”
  • November 8th Trump said the U.S. and China are close to an agreement.
  • November 14th Kudlow said we are “getting close” to reaching a trade deal. 
  • November 22nd Trump said trade deal with China is “coming along very well.”

These are just some of the times that President Trump or Larry Kudlow have mentioned how close the U.S. and China are to a deal. The Stocks and Coffee post made back in August is just as relevant today as is was several months ago. 

The chances of a large market drop if no trade deal is made are quite high. I do not believe that the market has priced in a no-deal and increased turmoil between the countries. 

Violence and Unrest in Hong Kong Worsens

The grim situation in Hong Kong continues to worsen. Last week a video of a protester getting shot by police within point-blank range circulated the web. As many as 100 activists are camped out in the Hong Kong University as they try to evade capture. President Trump says he’s standing with Xi and the protestors. He also suggested he might veto the legislation that aims to protect human rights in Hong Kong because the bill could affect trade talks.

Wall Street Weekly Performance

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This Week’s Top Gainers

Karuna Therapeutics $KRTX +383%
Myovant Sciences $MYOV +127.23%
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Danaos Corp $DAC -48.27%
Intelsat $I -46.83%
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