The Dow was whacked again today closing off 254 at 15,660 on heavy volume. It had been lower during the day but rallied back a bit on renewed chatter of OPEC doing some kind of production cut. Pushing stocks lower was another selloff in Europe on concerns over slowing growth. At this level it appears the Dow might be breaking below support.
A recent study by the Rand Corp estimates that air pollution dings China’s GDP by about 6.5% per year. The costs to the economy are driven mainly by lost productivity when factories are shut down due to spikes in toxic air and by increased sick days when people are affected by the dreaded “Beijing cough”. A lady named Elizabeth Economy (with a name like that she should be the chair of the Fed!) says that while the top brass in China is working to cap coal and build up solar and other forms of clean energy, it will take time to reverse a trend that has been in the making for decades.
In a move that shocked the street, shares of Tesla were up after the company reported earnings. Analyst rushed to buy stock when Elon Musk said he expects to deliver up to 90,000 cars in 2016 which is higher than the 80,000 that most gurus had expected. Revenue at Tesla rose 59% but the company lost 87 cents per share instead of the 10 cent per share profit that was projected. The company will unveil its Model 3 mass market vehicle in March!
WTI crude oil today continued to fall closing down .66% to $27.27. Gold continued to rally gaining 4.2% or $50 per ounce to $1,245. The British Daily Telegraph reported that gold stores in London were seeing long lines as buyers flocked to buy gold as European markets fell.