Your Thursday Blip 12/10/20

Your Thursday Blip 12/10/20

Stocks traded mixed as the usual news of stimulus and vaccines ruled the roost. At the close the Dow was lower by 69 points to 29,999 (its back on sale again!) on lighter trading volume.
Brent Crude oil futures topped $50 per barrel for the first time since March. Optimism that the vaccine may enable a return to economic normality next year was the driver behind the price move. Energy Information Agency spokesman Phil “flying” Flynn noted that prices were moving higher despite a massive increase in US oil supply and added that traders were looking beyond the current numbers and banking on a return to a more normal consumption rate in the months ahead. We have also seen a rise in prices for copper, steel and aluminum as economies slowly get back to normal. Investment house Janus had a report out which speculated on the possibility of a global synchronized economic recovery in 2021 as being the driving factor behind the increase in energy and material prices. At the close WTI crude oil prices were up over 4% at $47.47 per barrel.
Airbnb priced its IPO above early estimates giving the company an initial valuation of $47 billion at an offer price of $68 per share. When it started trading however shares jumped to the mid-$140 range giving the company a valuation of about $100 billion. While many panned the valuation as unreasonable, (and it is) company co-founder Nate “Alphabet” Blecharczyk said the pandemic showed how adaptable their business model was since they were able to post a $219 million profit last quarter and benefited from people booking stays in rural areas to get out of places like Seattle where pandemics and protests made life a little too stressful. Airbnb is considered the 4th largest hotel company in the world and all this is done without owning any hotels.