Your Weekly Market Blip 2/14/20

Your Weekly Market Blip 2/14/20

Once again we get a Friday selloff as the pattern of taking money off the table before a weekend continues. The Dow closed off 25 points on slightly higher trading volume at 29,398. For the week the Dow gained 1% or 290 points in market action that is fairly constructive according to IBD and BTS.
Goldman Sachs and others are lowering estimates for the growth in oil demand citing coronavirus and if effect on transportation, trade and travel. Goldman now thinks that oil prices this year will stay below $65 per barrel and currently trade at $51 per barrel for WTI crude. US drillers continue to crank out the production as falling demand from China affects Middle East suppliers who are also reducing demand growth estimates and cutting production. The lower oil prices will be tough on Venezuela, Russia and other nations whose gubment budgets rely on oil revenues. It will be interesting to see how this plays out.
Tesla surprised investors by issuing over $2 billion in a secondary stock offering priced at approx. $767 per share. News like this normally pushes a stock lower but in this case Tesla saw its share jump to over $800 as investors felt it was a smart move to raise capital and monetize the recent run which hammered short sellers and drove them to seek solace at seedy local watering holes in the Hamptons.

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