Your Tuesday Market Blip 5/12/20

Your Tuesday Market Blip 5/12/20

Stocks broke a 6 day stretch of positive action with a heavy volume selloff. The Dow gave up 457 points at 23,764. Dr. Fauci testified before congress and President Trump mentioned something about being ok with negative interest rates which is in stark contrast to the feelings of the Federal Reserve. Oil moved up 5% in price.
Boeing continues to struggle. CEO David Calhoun was interviewed on the telly and he thinks at least one major airline in the US will fail this year as a result of the shutdown and reluctance of people to get on a crowded airplane. For the month of April the company recorded zero orders plus customers canceled another 108 orders for the grounded 737 Max. Deliveries last month were six planes bringing the YTD total to 56 which is down 67% from a year ago.
The latest inflation reading was the lowest since the Great Recession. CPI inflation fell to negative 0.8%. Within the report barious sectors were up while most were flat to down. Gasoline fell 20.6%, Electricity rose 0.1%, natural gas services rose 0.2%, housing was flat, Airlines fell 15.2%, food and beverages rose 1.4% and transportation fell 5.9%.
Tesla is opening its Fremont, CA factory today after going back and forth with the local gubment which wants to keep the plant shuttered for now. Elon Musk said he would be at the plant and that if anyone is arrested it should be him. He also threatened to move the company HQ to Texas or Nevada immediately if he was not allowed to get back to work. I wonder if the CEO of Ford or GM has the same reckless, crazy passion.

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