Your Tuesday Blip 9/15/20

Your Tuesday Blip 9/15/20

The Federal Reserve begins a two day policy meeting today while positive news regarding vaccines and economic data pushed stocks higher with tech leading the way while utilities and value gave up a strong start and were lower on the day. At the close the Dow was up 2 points to 27,995. Trading volume was higher and the uptrend remains under pressure.
The New York Federal Reserve Bank’s Empire State Manufacturing Survey surged 13 points from 3.7 in August to 17 in September. The gurus had expected a reading of 6.5. The report showed that employment was unchanged and new orders increased modestly but shipments posted a significant gain and helped to ease stockpiled inventories.
German biotech BioNTech is working with Pfizer on a covid vaccine and IBD is reporting the program has now hit 5 of 8 milestones outlined in the agreement. This venture has the backing of both the US and Germany and yesterday the German gubment said it will allocate $446 million to BioNTech in support of the project.
Oracle looks to become the trusted partner in the US for TikTok but the deal is not final and there are many unknowns. First off the partnership needs to be approved by the US Committee on Foreign Investment. When Microsoft backed out of the deal they indicated the platform needed significant modification to meet security and privacy standards but it looks like the proposed partnership deal will not allow Oracle to do any of that. It is not really clear how Oracle will benefit from this other than to say it beat Microsoft and it could drive traffic to its cloud business via the 100 million young users on TikTok. Oracle’s stock has trended higher on the news but volatility has increased as well with all the uncertainty.

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