Your Wednesday Market Blip 2/5/20

Your Wednesday Market Blip 2/5/20

US markets followed through on yesterdays rally after a UK researcher reported on a possible vaccine breakthrough in the fight against the coronavirus. The Dow jumped back over 29,000 and closed the day up 483 at 29,290. Trading volume was heavy and investors jumped off the sidelines and back into the pool
Disney reported better than expected numbers with a 36% jump in revenue and a 17% drop in bottom line profits. The Disney Plus streaming service reported 26.5 million paid subscribers easily beating estimates calling for 20 million. Shares in the “House of Mouse” were relatively flat as CEO Bob “Big Bucks” Iger sounded a cautious note however because the company had shut its theme parks in both Shanghai and Hong Kong which will effect Q1 results.
If the 737 fiasco wasn’t bad enough, Boeing has shut its China delivery hub as coronavirus deaths top 500 and China struggles to contain the spread. Airbus has also closed its Chinese operations and even Tesla is halting deliveries as it idles its Shanghai Giga factory. On an interesting side note, Famed investor Steve Eisman from “The Big Short” told Bloomberg he had covered his Tesla short position saying he could only take so much pain. He thinks Tesla is a cult and that GM is a much better investment. Wait….didn’t GM go belly up during the housing crisis?
US ISM manufacturing Index climbed back into growth territory with a January reading of 50.9, Meanwhile the US ISM Service Sector Index jumped to a 5 month high of 55.5. The two forward looking indicators – business activity and new orders – also moved higher in January. The ADP jobs report today was stronger than expected.
In the Fremont area today the Aurora District had it annual Friends of Scouting breakfast and it was well attended. The event raised over $50k and one scout family was highlighted because their three boys are set on getting all 138 merit badges and so far two of them have done it while the youngest one just got his 110th merit badge.