Your Weekly Blip 7/24/20

Your Weekly Blip 7/24/20

The Blip is early today because Seattle City Light has a planned power outage in our area to replace aging telephone poles.
As of 8 am PST the Dow was down 44 points at 26,608. Trading volume is running higher than this time yesterday. Tech stocks are lower as Microsoft, Apple, Intel and Tesla fall in profit taking. Intel had disappointing earnings as it considers shifting its manufacturing out of house so it can focus on design and not production which is something other chip companies have been doing.
Gold crested $1,900 per ounce for the first time since 2011 and came within $10 of the all-time high. Pushing the yellow metal up has been global zero interest rate policies, massive deficit spending and lately the rising tensions between China and the US. After the US ordering the Chinese consulate in Houston shuttered the Chinese responded by ordering the US consulate in the city of Chengdu to be closed.
Seattle based Alaska Air reported its largest loss ever yesterday. CEO Brad “BT” Tilden said that while the company has weathered many crises in its history, the current global pandemic and demand destruction is unlike anything the industry has faced. The company lost $214 in the 3 month period ended June 30th compared to making a $262 million profit a year earlier. Tilden said they plan to shrink the business by 35% by October this year and then start building again next year. After securing $1.2 billion in private loans the company now has $3.7 billion in liquidity against a cash burn rate of $4 million per day. Getting to cash breakeven is the immediate goal and Tilden thinks they can get there before most competitors.

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