Stocks worked both sides of the fence today on light trading volume as the Dow ended at 29,186 off 9 points. Techs continue to lead and utilities are looking good while energy and materials lag. Earnings reports are mostly positive but Boeing is weighing on the Dow as it struggles with the continuing saga of the Max even as the 777X nears its first test flight.
Global virus fears have subsided as gubment officials in China and Asia are on this thing like a cheap suit. There was a case reported in Everett, WA and one of our scout dads (We shall call him “Nesbit”) works for the local CDC and he is on the job. One interesting thing about Nesbit is that while he and his son are hiking machines he has one weakness which is he cannot stand park rangers for some unknown reason. It’s almost like a dog that sees a mailman. We learned quickly that whenever a park ranger stops by our camp we get Nesbit out of the area quickly.
Tesla shares gapped higher but then did a reversal which could signal a near term top as the company will report earnings next Wednesday. Tesla crested the $100 billion market cap level becoming the world’s second most valuable car company behind Toyota and passing Volkswagen even though VW sells 30X more cars than Tesla. VW CEO Herbert “Herbie” Diess acknowledges that Tesla’s expansion marks a radical shakeup in the auto industry noting that cars will “become the most important mobile device” and will double the time consumers spend online. Diess said that if you get that concept then you can understand why Tesla is becoming so valuable. Tesla does not sell cars, they sell mobile devices or “computers that have wheels”.