Your Wednesday Blip 11/18/20

Your Wednesday Blip 11/18/20

Stocks opened higher but as the day wore on turned tail and ended lower as new lockdowns overshadowed positive vaccine news. At the close the Dow was off 344 at 29,438 on higher trading volume. Both IBD and BTS continue to list markets in rally mode but volatility is expected.
Shares of Boeing jumped at the open as the FAA rescinded the order that halted commercial operations of the 737 Max. The move allows airlines to return the plane to service once certain requirements have been met. These include installing software enhancements, completing wire separation modifications and conducting pilot training. The 737 Max jets have been sitting in storage for 20 months so there will also be work done to ensure the planes are ready for service.
Morgan Stanley guru Adam “Wheels” Jonas upgraded his investment outlook for Tesla saying the company is on the cusp of transitioning to a high margin services and revenue business model as it takes ahold of the “internet-of-cars” opportunity. Within Tesla itself there are several units that all contribute to this goal. There is Tesla auto, Tesla energy, Tesla insurance, software/network services, mobility/ride-sharing and finally the 3rd party supplier segment. According to Jonas this all makes the stock a buy even though current valuations are high and competition from other car makers is on the rise.

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