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Quote of the Day
“There are 10^11 stars in the galaxy. That used to be a huge number. But it’s only a hundred billion. It’s less than the national deficit! We used to call them astronomical numbers. Now we should call them economical numbers.”
― Richard Feynman. On this day in 1945, Feynman’s and many other scientists’ top secret research would be shown to the world by its devastating effects in Hiroshima, Japan.
August 6th – This Day in Stock Market History
August 6th, 1932 – The Dow Jones Industrial Average caps off one of the best weeks in history by rising 6.33% on the day, and 25% for the week.
Here are the returns for this week in history in 1932:
August 3rd – up 9.52%,
August 4th – up 2.42%,
August 5th – up 4.98%,
August 6th – up 6.33%
The run would take the Dow from 53.16 to 66.56 – a rise of 25% in just 4 days. The bounce would help put in a permanent bottom in the stock market from the great depression. Stocks would continue to rally as the year went on, and 1933 would be the best year in US stock market history.
August 6th, 1945 – At 8:15 am local time, the United States detonates the first atomic bomb on Hiroshima, Japan.
And here is how the Wall Street Journal would cover the Hiroshima bombing:
The development of the bomb and its use against Japan would be the deciding factor at the end of World War 2. Japan would surrender August 15th, 1945.
The U.S. stock market was rising rapidly into 1945 as investors sensed victory approaching. The day after the bombing of Hiroshima, stocks would fall 1%, but the Dow Jones Industrial Average would rise by 20% from its level on this day in 1945 by the end of the year.
August 6th, 1997 – Microsoft, with new CFO Greg Maffei, announces it will invest $150 million in Apple Computers in exchange for Internet Explorer becoming the default internet browser on the iOS software.
Apple’s stock would close the day up $6.56, to $26.31 per share – a rise of 33%.
Of course, the Apple Computers of 1997 is not the same Apple that we know today. Apple’s stock in 1997 was down 79.77% from its 1992 highs!
It was widely reported that Microsoft was “saving” Apple, however the investment may have been more symbolic than a rescue. Apple Computers was struggling – The company would end up reporting a $1.045 billion loss for the year just a couple months later:
However, it was unlikely that Apple was desperate for cash. At the time they had about $1.23 billion in cash in the bank, with a current ratio near 2:
Regardless, the investment by Microsoft gave investors the confidence to invest in Apple. After a brief drop in late 1997, Apple’s stock would begin rising rapidly through the tech bubble:
(Note: the price for Apple shares in the chart below are adjusted for both splits and dividends)
Best August 6th in Dow Jones Industrial Average History
1932 - Up 6.33%, 3.96 points.
Worst August 6th in Dow Jones Industrial Average History
1990 - Down 3.32%, 93.31 points.
Read of the Day
I personally believe Richard Feynman to be one of the most interesting men to have lived.
One of my favorite of his books is a collection of his writing in a book called: The Pleasure of Finding Things Out: The Best Short Works of Richard P. Feynman (Helix Books)
There are several great biographies on Feynman, my favorite is: Quantum Man: Richard Feynman's Life in Science (Great Discoveries)
If you are more into his physics, his famous lectures in physics are now available online, here: http://www.feynmanlectures.caltech.edu/info/
By the way, Apple Computers would later use Feynman in an ad campaign:
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