Your Monday Market Blip 2/10/20

Your Monday Market Blip 2/10/20

Monday began the trading week with a nice uptick. The Dow closed up 174 on light trading volume at 29,276. Amazon was a big mover and pushed the NASDAQ higher by 1.13%. IBD has markets in rally mode.
The latest coronavirus news shows continued concern over the spread of the virus. Some car plants in China like Tesla, VW and Ford are starting to operate again while others like Toyota and Honda are extending curtailment. Fiat Chrysler is the first automaker to flag multi-week disruptions at European plants due to parts shortages caused by idled factories in China. The central bank of China has injected $1.7 billion into the economy and also is reportedly telling banks not to foreclose on businesses that miss debt payments. Meanwhile the CCP is wrestling with food shortages in areas on lockdown and overall inflation is over 5.4% thanks to rising food prices. China is in a bind and it will be interesting to see how they work through this.
The slowdown in China continues to affect prices of materials and energy. In the US, WTI crude prices are hovering just below $50 per barrel. Natural gas prices are at a 3 year low of approx. $1.86 per mbtus. Metal prices are also down and these trends look to continue until more data on virus spread rates is confirmed.

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