Your Thursday Market Blip 6/4/20

Your Thursday Market Blip 6/4/20

After a 500 plus point rally yesterday the Dow traded both sides of the fence today before closing with a gain of 11 at 26,281. Trading volume was heavier. The NASDAQ was down 67 points to 9,615 on higher volume making this a “distribution” day according to IBD. Bank stocks were higher while shares of tech companies were lower. What appears to be happening is that beaten down stocks like banks and energy are starting to close the gap with high flying sectors like healthcare and tech. Airlines were up big today led by American Airlines which bolted higher by 41%.
The electric truck maker Nikola Corp lit up the IPO market with a launch that saw ok market action. The name Nikola comes from Nikola Tesla. Its good that Tesla did not have a middle name because another Musk wannabe would undoubtedly snap that up as well. Nikola Corp expects to have an electric rig on the road before Elon Musk’sTesla and as of now it is reporting it has14,000 preorders for approx. $10 billion in sales. The company was founded in 2014 and is working to produce electric and hydrogen class 8 trucks. The IPO raised more than $700 million in cash. Since inception the company has booked $200 million in losses. With both Nikola and Tesla being different companies it could get confusing if someone finds themself in a conversation about Nikola Tesla.
China said it would ease flight restrictions to foreign carriers after the Transportation Department said it would not allow Chinese carriers to fly into and out of the US. The DT responded to the news from China saying it would likely revise its original order in the coming days.

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