Your Monday Blip 7/6/20

Your Monday Blip 7/6/20

US Markets were higher after positive global economic data pointed to a continued recovery path from pandemic lockdowns. Tech stocks continue to lead the way as Amazon crested 3k per share while Microsoft and Apple also hit new highs. Shares of Tesla were up big after several brokerage houses bumped their target prices. At the close the Dow was up 459 points at 26,287. Trading volume was up. IBD has markets in rally mode while BTS continues to sit on the sidelines.
Chris Low, economist at FHN had an interesting note regarding the big 6.4% jump in Chinese stocks last night. He wrote that state run media outlets in China had urged mom & pop investors to pile into local stocks and apparently this appears to have had an effect. The issue that Chris points out is that shares of Chinese companies are stretched even more than some US stocks and it might not be good for the CCP to be telling its middle class citizens to risk their money in local stocks at this time.
Boeing completed the formal certification flight tests of the 737 Max last week and this week will host a series of test flights with federal pilots and global airline crews intended to vet the changes to the plane’s flight control system. If all goes well the grounding order on the 737 Max could be lifted in September.
Regeneron Pharmaceuticals announced it was starting the phase 3 trial of its COVID-19 antibody cocktail designed to prevent infection in people who are uninfected and have experienced close exposure to someone with an active infection. This could come in handy at bars in Texas and California. The phase 3 study will be a large-scale trial that will involve 2,000 patients. Regeneron stock was up on the news.
Oil prices went above $40 per barrel for WTI crude after Saudi Arabia raised pricing for August shipments to Asia, Europe and the US. This is the third consecutive month that Saudi Aramco has lifted its official selling price saying the move reflects the overall recovery in oil markets even though demand remains uneven and is subject to reversals.

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