Your Thursday Market Blip 3/19/20

Your Thursday Market Blip 3/19/20

After an opening 700 point drop, stocks stabilized and recovered with the Dow closing up 188 or 0.95% to 20,087. Trading volume was lower. The NASDAQ gained 2.3% as tech stocks bolted higher. Crude oil prices jumped 23% and WTI finished the day at $25 per barrel.
The Feds are saying that a surge of virus testing will occur over the next 4 to 5 days which will lead to a spike in new cases. Once this data is out however it will lead to better insight into spread of the virus and how to potentially address the problem. Knowledge is power. One thing that is surging is unemployment claims as energy companies, restaurants and hotels lay off staff and people begin to file. Its amazing that just 3 weeks ago the Atlanta Fed was forecasting a 3.1% GDP growth rate!
Shares of Gilead Sciences has been doing well through the downturn as the company is now involved in five studies in both China and the US for its drug remdesivir which was originally designed to fight the ebola virus. While early results from these tests are promising the gurus are concerned about getting the right dose for each patient and if they can do this they expect FDA approval ASAP.
Tesla shares are going back and forth. After the local gubment issued a shelter in place order Elon Musk said that employees can stay at home if they don’t feel comfortable, but that he will be there and Tesla will keep operating. The local sheriff then told the company to go to minimum operations but apparently as of this morning Elon is there and the parking lot is mostly filled with cars as it appears people came to work in defiance of the law. This might force the cops to get tough on Tesla! Ford Motor meanwhile announced it would suspend its dividend payments.

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