Your Monday Blip 1/11/21

Your Monday Blip 1/11/21

Markets were lower today as the Dow fell 89 points to 31,008. Trading volume was well off indicating that big investors were mostly holding tight. Value stocks like steel, mining, energy and banks were higher along with renewables while tech stocks pulled back in what appears to be continued sector rotation ahead of a new administration entering the White House.
The price of a barrel of oil has surged 45% since the end of October after a series of vaccine breakthroughs raised expectations for a sustained rebound in fuel consumption. Goldman Sachs is now expecting oil to reach $65 per barrel by the summer. WTI crude traded today at $52 per barrel after a sustained rally last week.
Steel and material stocks have been on a run. Shares of US Steel have risen from $8 to $23 since the end of October and on Friday the company received a “double” upgrade from Deutsche bank guru Chris “the man with two first names” Terry. A double upgrade is where the stock gets both a price target increase and a rating change. In this case Chris switched his rating from sell to buy and he upped his target price from $4 to $28. Reasons behind the strong call was rising demand for steel from car makers plus the improving prospects of an infrastructure bill in Congress. One mining stock has been on the rise is Freeport McMoRan which is big in copper mining. Martin Marietta Materials which produces crushed rock and sand has also bolted higher.
Over the weekend I met with another young man about his “path to Eagle Scout”. He has 4 merit badges to finish up and is starting to research ideas for an eagle project. He wants to do something related to construction and his deadline is 9 months from now. If anyone knows of a good project idea in the North Seattle area please send it along and I will shoot it over to him.