Your Monday Market Blip 4/13/20

Your Monday Market Blip 4/13/20

After a long Easter Weekend the Dow resumed trading and fell 328 points to 23,390 on greatly reduced volume. Oil prices bounced after a weekend deal between Russia, OPEC, Mexico and several other nations that is expected to take 20 million barrels in production per day off the market. Chatter from Bloomberg hinted that Russia had to eat crow because it did not properly estimate the amount of demand destruction from the virus.
As daily virus death counts start to flatten and decline in some spots the conversation begins shifting to the economy and how best to get it up and running again. One example of this is Boeing which is putting 2,500 workers back on the job today in its defense division for its P-8 maritime surveillance aircraft and the KC-46 tanker. Also in Moses Lake the company is bringing back workers to support the 737 Max storage program. The company will implement wellness checks, stagger shift times and require face masks as part of the plan.
GE is using the recent sale of its Biopharma unit to issue extended maturity bonds and use the proceeds to launch a tender of up to $9 billion in debt due between now and 2024. As of March, GE has cash holdings of $47 billion and CEO Larry “Big” Culp said the company is on track to hit long term goals while taking swift actions today to de-lever and strengthen the balance sheet during a challenging time.
Shares of Gilead Sciences have been edging higher as gurus suggested the company could gain limited authorization for its remdesivir drug as early as mid-May. The drug has been in testing and recent results showed an 84% improvement for critically ill COVID-19 patients in a clinical trial.

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