Your Wednesday Market Blip 5/13/20

Your Wednesday Market Blip 5/13/20

Stocks lost ground for a second day in a row after a speech by Fed Chair Powell. Also several big hedge fund investors, with the exception of Bill Miller, took to the airways saying markets are overvalued. At the close the Dow was off 516 on heavy trading volume to close at 23,247.
Fed Chair Powell today said the economic outlook is highly uncertain and that while the Fed acted swiftly and forcefully more support may be needed. He expects unemployment to peak in June and a recovery after that could be forceful. He noted however there are significant downside risks and that if the shutdown drags on for a longer period it will turn liquidity problems into solvency problems. He slammed the door on talk of implementing negative interest rates as a viable option.
New covid 19 cases in the US have hit their lowest levels in weeks with much of the improvement coming from New York and New Jersey. Testing has increased and the share of positive tests is falling. In Washington State, Gov Inslee announced that the contact tracing team is now up and running which was an important step in the reopening process.
Tesla received permission to restart operations at the Fremont, CA factory after the local gubment allowed the company to move forward with certain conditions. In other car related news Hertz Global is trying to stay alive as its car rental business has all but disappeared. There is speculation that if the company folds it will dump rental cars on the used car market which has already seen a 34% drop in used car prices. Banks are currently working with Hertz to unload some of its assets to pay bills.
As of now the lunkheads are still on track to attend summer camp at Camp Meriwether in Oregon. We have about 50 scouts planning on the trip. Scout camps in Washington like the iconic Camp Parsons are still debating an opening date.

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