Your Wednesday Blip 6/17/20

Your Wednesday Blip 6/17/20

Markets consolidated today as rising tensions between China and India resulted in a deadly brawl in eastern Ladakh where both countries have moved troops to the disputed region. One report said China has put 200k troops in the area and that in the brawl 20 Indian troops died and an unknown number of Chinese troops. At the close the Dow was down 170 points at 26,119. Trading volume shriveled up like a raisin indicating a lack of institutional selling in today's action.
The head of the FDIC, Jelena “J-Mac” McWilliams recently spoke on the condition of the banking industry. She said Q1 bank earnings were down 70% to an aggregate $18.5 billion amid the corona pandemic and that banks nearly quadrupled their loan loss reserves. She also noted that capital and liquidity levels remain strong and the number of “problem banks” are near historic lows. Bank deposits grew 8.5% in the first quarter as banks saw a deposit inflow of $1.2 trillion smackers.
A meeting between 16 heads of various global oil companies came to a consensus that the global oil market is slowly rebalancing itself and encouraging signs of economic recovery are being seen. The IEA forecast a record rebound for oil demand in 2021 and the group of 16 CEOs agreed with this sentiment. The price of WTI crude today traded at $38.15per barrel and has been hovering just below the forty dollar mark for the past couple weeks.
Shares of Tesla continue trade well. The company is rumored to be negotiating with Texas to build a new giga factory near Austin. Tesla also signed a new 3 year battery supply contract with Panasonic and the company continues to sell grid level battery packs having just signed a deal with NRG Energy to build a peaker plant in sunny California to supply juice to Southern California Edison.

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