Your Tuesday Market Blip 3/17/20

Your Tuesday Market Blip 3/17/20

After the worst percentage drop since 1987, Markets rebounded and closed the day up 1,048 at 21,237. Trading volume was higher. Utilities were up big as were healthcare, tech and grocery store stocks.
Various drug testing around the globe for coronavirus is well underway. NHK World reported the Chinese gubment had approved mass production for a drug called Avigan which was developed by a Japanese biotech and is under license by a Chinese firm. Testing of the drug in Wuhan and Shenzhen found that patients who were positive for the virus returned to normal after a median of 4 days versus 11 days for patients not taking the drug. Officials also noted there were no observed side effects. In the US, biotech companies like Moderna, Gilead and Regeneron to name a few are also ramping up and beginning tests.
There is a lot happening with local businesses. Hotels are laying off staff as occupancy drops by 60%. Shares of Boeing hit a 4 year low as the company struggles with the 737 Max fallout and now trouble with airliners that are not flying. Alaska Air yesterday announced a 10% flight reduction starting in April along with a postponement of capex projects. CEO Brad “No Bucks” Tilden will forego his salary for now. Other airlines are following suit and it looks like the entire industry may soon get federal aid. Meanwhile Amazon announced plans to hire 100,000 workers to help keep up with demand for deliveries. People that work at Microsoft are saying that working from home is more efficient since there are fewer interruptions. Costco purchased a logistics company today called Innovel for $1 billion to boost its delivery firepower and improve last mile service quality. The deal comes with 1,500 employees.
Investment guru Warren Buffett had a mentor named Ben Graham who is considered the father of value investing. Here is a good quote from Ben that might help us through this challenging time.
The best way to measure your investing success is not by whether you’re beating the market, but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go. ( Ben Graham).

Comments are closed.