Your Weekly Market Blip 1/31/20

Your Weekly Market Blip 1/31/20

Stocks ended the month with a thud as the World Health Organization or WHO declared the coronavirus outbreak a public health emergency of international concern and the US declared a national public health emergency. The virus, which is not associated with Corona Beer, continues to spread like butter on warm toast shutting down jobs, incomes and the movement of goods and services in China. Moody’s issued a warning today about the pandemic saying it could be a “black swan” event that might push China in a recession citing a 7.1% decrease in industrial metals prices since the virus was first reported. They noted the strong correlation between metals prices and global economic growth going back decades.
At the close the Dow was down 603 at 28,254. Trading volume was way up as institutional investors are taking money off the table. For the week the Dow was down over 2% and for the month of January was off 1.1%. IBD noted increased institutional selling.
Fourth quarter GDP readings are coming in and the US stood at 2.1% which was slightly better than expected while the European Union posted a 0.1% increase. Britain officially leaves the EU today at 12 pm Brussels time.
Amazon posted better than expected results sending shares up 8% as revenue gained 21% and net income was up 7%. Headcount at Amazon stands at almost 800,000 workers which is up 23% year over year. Same day delivery services continue to show progress and AWS cloud services are showing resilience in the face of competition from Microsoft and Google. Barclays guru Ross “Adam” Sandler led a parade of positive comments and price target upgrades for the stock.
Troop 100 hits the hills this weekend for a snowshoe hike along the shores of Lake Kachess. We have 12 lunkheads signed up for the trip and 4 idiots….I mean adults. The kids are looking forward to flaming snowballs. One dad told me he was “most concerned” about the safety issue with flaming snowballs but I said that since we let then shoot guns the flaming snowballs should not be an issue.