Your Thursday Blip 2/4/21

Your Thursday Blip 2/4/21

Stocks continue to move higher as the Dow gained 332 to finish the day at 31,055 on lower trading volume. Bank and industrial stocks fared best and were market leaders while tech continued to waffle. IBD continues to list markets in rally mode.
Ohio based Marathon Petroleum, one of the largest refiners in the US reported earnings this week and it was interesting to listen to management talk about a paradigm shift to clean energy occurring in the industry. Marathon this past quarter converted one of its refineries to producing renewable diesel and is in the middle of converting its refinery in California to renewable diesel as well. Renewable diesel is made of biomass (food waste, ag waste, garbage, wood waste, etc) but the refining process is different and the end product is chemically the same as petroleum diesel but with 80% less emissions. This direct substitute does not need blending , reduces maintenance costs and stores well. Fleets are buying the product and refiners are moving smartly to meet demand.
There are rumblings that the rush by car companies to catch up with Tesla (and its 79% share of the market) is causing a chip shortage. Toyota and GM recently took some production offline due to a tight semiconductor inventory. Meanwhile Apple is finalizing a deal with Hyundai-KIA to make an Apple branded EV at the KIA plant in West Point, Georgia. With Apple getting into the car business and considering its name, will they call their cars after “varieties” of apples instead of “models” like everyone else does. Will we finally get to see an Apple Golden Delicious or Cosmic Crisp driving down the road? Will we get a purchase a Granny Smith that does 0-60 in 2 seconds?