The markets are like the weather. If you don’t like them then just wait 5 minutes. The Dow today opened with a 100 point move in the black but then went negative as trade and Washington DC budget news hit the wires and speculators, who trade based on Twitter tweets, bought and sold stocks. At the close the Dow was down 53 points to 24,370 on light trading volume. The NASDAQ was higher on the day thanks to strength in tech stocks.
Yesterday we mentioned the big Chinese networking company called Huawei and how they were being black listed from some markets due to cyber security worries. Today, former Nokia executives talked on the business wires about what it was like when they went to China many decades ago. They were a pioneer in this region and did well but then had a bunch of technology stolen from them by…..you guessed it…..Huawei. Nokia sued, and Huawei settled but over time Nokia’s business in China declined from over $3 billion per year to under $200 million so they pulled out of China altogether and have no desire to go back since business there has changed and is apparently not to their liking. It will be interesting to see how these stories, which highlight the China trust issue, will affect the overall Sino economy and how China’s gubment and people will respond. ADV China has posted Youtube videos about these subjects and how piracy in China is almost a way of life.
Shares of Twitter shot higher today after a Pew Research piece revealed how people get their news these days. It seems 49% still get news from TV but that online social media sources now garner 20% while printed newspaper has fallen to 16%. Carrier pigeons are now less than 1%. Ha-ha. People over age 65 get 39% of their news from print media while people under 30 only get 2% of their news from printed newspapers which reveals the harsh trends that newspapers face. In his 60 Minutes interview on Sunday Elon Musk called Twitter “a war zone” and this is an interesting comment since it seems to me that Twitter is becoming the go to site for getting current news and opinion while on the go.