Your Wednesday Blip 7/1/20

Your Wednesday Blip 7/1/20

Stocks were mixed at rising infections battled news of a promising vaccine trial by Pfizer. At the close the Dow was down 77 at 25,734 on lighter volume as the NASDAQ rose 95 points to 10,154 on heavier volume. IBD continues to list markets in rally mode while BTS remains on the sidelines in cash and treasuries.
Tesla today turned heads as its market cap hit $208 billion surpassing Toyota as the world’s most valuable car company. In just 10 years Tesla has gone from IPO rookie to the most shorted stock on the market and now king of the car companies. Toyota produces 10 million cars annually while Tesla delivered 367,500 last year up 50% from the prior year. The company is about to report its 2Q deliveries which gurus estimate to be between 72k and 100k units but investors are front running the report amid whispers that it is possible for the company to post a breakeven or even a profitable quarter.
The new security law went into effect in Hong Kong and within the first day there were arrests of people who voiced support for independence. NPR had a good article about the new law saying that details in the law were not released until it had been passed and that in addition to bringing Hong Kong into the China fold it extends its reach globally to flag people who are outside of Hong Kong and who criticize the CCP. The US Commerce Dept. released a statement saying the law could prompt companies to rethink operations and move away from the region.
AAA is projecting that 97% of summer travel plans for Americans will be road trips! This compares with a 5 year average of 87%. A road trip is defined as a single or multiday getaway to a beach, campground or whatever. The same report projects that summer air travel will be down 74%. Spokesman Mark Jenkins said that lower gas prices and hesitation over jumping on an airplane is causing people to hit the open road in a car or RV for a location that is outdoors and away from others as much as possible