Your Monday Blip 7/13/20

Your Monday Blip 7/13/20

Quarterly earnings reports are on tap as news of progress in covid-19 vaccines continue to influence trading action. After a fast start and a 400 point jump the Dow and NASDAQ reversed and closed the day mixed. The Dow was up 10 points at 26,085 while the NASDAQ lost 226 points at 10,390. Trading volume was up. Techs have been flying high lately so today’s action looks like profit taking in that sector. Value stocks like banks, utilities and healthcare posted modest gains.
The FDA granted fast track designations to coronavirus vaccines being worked on by Pfizer and BioNTech. Both of these outfits have vaccine candidates in phase 1 and phase 2 trials being conducted in the US and Germany. While data is still coming in and has not been peer reviewed the early results indicate that participants in the studies were able to generate significantly more antibodies by multiples of 3x to 46x than that of recovered covid-19 cases. Shares of both companies were higher on the news.
Early in the day shares of Tesla resembled a SpaceX Falcon 9 liftoff today before reversing lower and coming back to earth like one of those reusable boosters. The initial price jump was driven by 3 events. One is the upcoming “battery Day” scheduled for Sept 22nd where gurus are expecting a potential ground breaking technology which might include a micro capacitor attached to each cell, another is the possible inclusion of the stock into the S&P 500 Index which will trigger passive investment purchases. Last but not least is news that Tesla is preparing to sell cars to India. The market cap today hit $300 billion. Shorts had a painful breakfast but lunch was a bit more digestible as shares finished the day lower. Analyst continue up upgrade the stock as Robinhood investors pile on.
This afternoon I will be helping a Troop 100 Scout finish up his Eagle Project. This project involves support of the Ballard Food Bank and will be the first Eagle project since the lockdown.