Your Tuesday Market Blip 2/18/20

Your Tuesday Market Blip 2/18/20

All eyes are on the China virus story and its widening effect on global commerce specifically affecting shares of Apple today. Meanwhile Tesla gapped higher in what finished as an overall mixed day with the NASDAQ up while the Dow closed lower dropping 165 on heavy trading at 29,232.
Apple warned investors today that it is being hit by the coronavirus in two ways. One is on the production end because there are not enough workers showing up at Chinese factories to make product and the other is on the sales end since Apple has had to shut stores as part of the lockdown to contain the spread of the virus. This news in term affected some of Apples chip suppliers like Broadcom, Qualcomm and Taiwan Semi. Other US manufacturers in China are also reporting difficulty restarting production facilities. Getting workers seems to be the biggest issue as travel is still restricted.
US Industrial production figures came in soft with a 0.3% decline in January. The drop was due to warm weather which curtailed utility output coupled with the 737 Max production halt at Boeing which caused a 9.1% decline in the production of aerospace products and parts. Excluding these two items the rest of manufacturing was up 0.3% led by the auto sector.
The Boy Scouts of America national organization has declared bankruptcy today as it fights to survive the financial strain of lawsuits stemming from past abuse of young boys by perverts. This move will not affect the local charters and troops however since they are separate legal entities. On a national level the scouts mortgaged the Philmont Ranch for $140 million to establish a line of credit and pay claims. Some are saying this could be one of the most complex bankruptcies ever due to the structure of the organization and ownership of camps and facilities. The stated goal of the national office is to compensate the victims fairly while keeping scouting alive for the benefit of all. Troop 100 and other troops in our area are in good shape with plenty of adventures planned for this coming year.

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