Your Tuesday Market Blip 3/10/20

Your Tuesday Market Blip 3/10/20

Stocks rallied back today with the Dow gaining 1,166 points on lighter trade to close at 25,016. Forget face masks….buy a heart defibrillator!
Economist Chris “Buy” Low over at FHN said China is showing that you can get through the virus outbreak. President Xi visited Wuhan and China reported just 26 new cases down from 44 the prior day. Subway ridership is increasing and the logjam at Chinese ports is clearing out while manufacturing is slowly rebounding. On the more cautious side however the rebound might be weaker than hoped as consumers in China did not get paid while they stayed home so instead of having money to burn they need to play catch up on the rent.
Car sales in China have taken a beating. GM reported February sales off 92%, Honda down 79% and Toyota off 70%. Bucking the trend however was Tesla which delivered 3,958 cars in February which is 400 more cars than the prior month. This means Tesla grabbed 30% of the EV market in China last month.
Oil prices bounced up 7% from yesterday. WTI crude traded at $33.58 up $2.45 a barrel. Occidental Petroleum cut its dividend by 85% and reduced its capex spending. The oil price drop is producing winners and losers. The South China Morning Post noted that China might use the recent drop in oil prices to bolster its reserves while US consumers will see lower prices at the pump. Meanwhile Pioneer Resources CEO Scott “Oily” Sheffield thinks US oil output could decline by as much as 20% or 2 million barrels per day due to the price war.
Following the lead of some school districts, BSA Troop 100 Ballard has suspended meetings for this week and next. There is a bike trip this weekend that is still on. We have heard that Girl Scout cookie sales in the area are way off due to kids and parents not wanting to hang out in front of the local grocery store. This begs the question….”where do unsold Girl Scout cookies go?”