Your Wednesday Blip 2/17/21

Your Wednesday Blip 2/17/21

Stocks continue to play a game of tennis with the Dow attacking the net while the NASDAQ falls back to the baseline. At the close the Dow was higher by 90 points to 31,613 while the tech heavy NASDAQ fell 82 to 13,965. Trading volume was lower across the board. Banks, Energy and material stocks were higher while tech took a breather.
QuantumScape, a Californian based battery company that came public last year reported its first ever quarterly results which showed a $694 million loss and no revenue. Shares bolted higher however as gurus are anticipating great things from the company which, while it is still in the pre-commercial phase, says it has unlocked the key to the solid state battery for the EV market. The company is aiming to become an OME for car companies looking to compete with Tesla. The game changing aspect of the solid state battery is that it can charge to 80% capacity in 15 minutes. Scaling this into commercial production however will be a challenge but as of now the big boys on Wall Street are excited. QuantumScape has $1 billion in liquidity, a 50-50 joint venture with Volkswagen plus the backing of people like Bill Gates. The plan is to have batteries in commercial production sometime in 2023 or 2024.
The latest US economic data showed rising inflation and strong retail sales. Producer price inflation rose at the fastest pace since 2009 with a 1.3% increase in January. This increase in January marks the only time in history the index has recorded a single month increase of over 1%. In other economic news, Retail sales rose 5.3% in January crushing consensus estimates calling for a 1.1% gain. Stimulus checks from Uncle Sugar helped boost the results and contributing to that effort is the rollout of the covid vaccine which is easing lockdowns and allowing more people to get out and more businesses to reopen.