Your Monday Blip 3/8/21

Your Monday Blip 3/8/21

This is fascinating. The NASDAQ is down while the Dow continues to climb as rising treasury yields and optimism over the stimulus package drive investors from tech plays into value stocks. At the close the Dow stood at 31,802 up 306 points while the NASDAQ fell 310 points or 2.4% to 12,609. Trading volume was lower across the board. Bank, airline, energy and material stocks like steel and aluminum were higher today.
On Sunday the Senate passed the $1.9 trillion stimulus package sending it to the House where it is expected to win a yes vote by Tuesday or Wednesday. From there it’s on to the President’s desk where President Biden is expected to sign it before March 14th. Gurus at JP Morgan are saying the bill will accelerate growth momentum globally to a rate of 6-7% for the remainder of the year. US treasury yields moved higher in response to the Senate passage and crested 1.6% as investors are worried that a surge of inflation could be byproduct of all that money hitting the system.
Oil prices jumped after an attack on a large Saudi Arabian oil facility by Iranian backed Houthi rebels. The attack on the facility reveals a trend of rising tensions in the region and how they are sending jitters through global energy markets. Prices for North Sea Brent hit $70 per barrel and in the US WTI crude hit $66 per barrel. Energy analysts are expecting to see draws on stockpiles due to recovering demand so any news of supply disruption will have an immediate effect on pricing and inject volatility into the market.
Scouting has been quiet lately but I have been helping several scouts with the Personal Management merit badge which deals with budgeting both money and time. It also involves learning about various aspects of saving, investing and debt. This weekend I helped two lunkheads finish up that merit badge. The troop is also involved in planning for several big hikes this summer in both the Cascades and Olympics.