Your Tuesday Blip 7/7/20

Your Tuesday Blip 7/7/20

The Dow tumbled 396 points to 25,890 on light trading volume. Shares of Boeing pulled the Dow lower while gold stocks and some tech positions continue to trade in positive territory.
In economic news the ISM Non-Manufacturing Index for June rose 11.7 points to 57.1 which was the biggest single-month jump in the history of the Index dating back to 1997 which is when Bill Clinton was President and Boeing merged with McDonnell Douglas. A reading of 57.1 puts the US service sector back in growth territory for now. Of the 18 industries tracked by the Index fourteen reported growth while three reported contraction and one was unchanged. The survey showed fewer delays in the supply chain plus the new orders component rose 19.7 points to a healthy reading of 61.6.
Social media companies like TikTok, Facebook, Google and Twitter are reviewing their operations in Hong Kong following the passage of the new security law which requires those platforms to provide user data to the police. TikTok is growing fast in the US and operated in Hong Kong but not mainland China. The company wants to be a global player but since it is owned by a Chinese company call Bytedance and if does not want to be in a position to have to comply with the security law and has thus announced it will exit the Hong Kong market. The US is considering banning TikTok and the company appears to be moving fast to remove conflicts of interest that could force it to share user data with the CCP.
The Department of Health and Human Services continues investing in biotech companies to help speed development of a covid vaccine. HHS today said it is sending $450 million to Regeneron Pharmaceuticals which is entering phase 3 trials of its vaccine and plunking down $1.6 billion on Novavax, a Maryland based biotech with some promising technology. The money for Novavax will be spent on trials and production facilities capable of producing 100 million doses with hopes of a vaccine being ready by the fourth quarter of this year.

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