Your Wednesday Market Blip 1/13/16

Your Wednesday Market Blip 1/13/16

The “State of the Onion” took a hit today as the Dow fell 365 points to close at 16,151. Trading volume rose indicating that big investors are moving to the sidelines. Markets are now entering correction territory. Oil today held steady as WTI crude gained 0.8% to close near $30.70 a barrel. Big decliners today were rails, airlines and trucking.
In last night’s speech, President Obama noted that auto sales for 2015 were at an all-time high which is great but it is important to note that car dealers have lately been saying they have to offer more incentives to prospective buyers which is affecting margins and causing them to adjust inventory which in turn could reflect back on the car companies and affect their 2016 plans. Stay tuned!
Things are on the move. General Electric notified Boston Mayor Marty Walsh that they intend to move their headquarters from Fairfield, CT to a big development project currently under way in Boston. GE will get over $120 million in “beer and bean” tax incentives to move. Connecticut passed a big tax increase a year ago and since that date GE started looking for alternatives. CEO Jeff Immelt said they picked Boston due to its proximity to 55 universities, lower taxes and being a city with a culture of innovation and a talent pool to back it up. Massachusetts ranks 22nd in its tax climate while Connecticut is ranks 44th. GE will sell its Fairfield HQ building and the 30 Rock Tower in New York to pay for the move which is expected to bring 800 employees to Boston. GE is making a big move to become the global leader for “the internet of things” in which the machines it makes are able to communicate with humans and each other via networks.
The other big move is the St. Louise Rams football team announcing they are headed to sunny Los Angeles. The NFL wants to get back into the LA market with a massive new and wonderful stadium. It was a rough day for Ram’s fans.