Your Weekly Market Blip 2/21/20

Your Weekly Market Blip 2/21/20

Stocks sold off again heading into the weekend, which is fairly common when there are known uncertainties, like the coronavirus, in the markets. The Dow traded down 227 points, and closed the week at 28,992. Bond yields continue to get pushed lower as investors run to safe havens, and you can now get a 30 year treasury for 1.9%, which is about half a percent lower than the current inflation rate. Gold was the big winner moving up over 1.5% today.
The White House announced that they will be holding a 5G summit to figure out how to build the infrastructure without using Huawei products. It sounds like the major players will be there, such as Nokia, Ericsson and Samsung. Additionally, other tech and telecom C-levels have been recently meeting with President Trump to discuss how the U.S. can reemerge as a leader in this industry. One particular advisor has been Microsoft President Brad Smith, who spoke with Trump about a month ago and also discussed it at Davos. Part of the belief is that software and cloud services are going to be just as important as the physical hardware.
Elon Musk is going to the markets to ask for more money, but this time it’s not for Tesla. Space X is looking to raise about $250 million in private funding with an approximate share price of $220 per share. This puts Space X’s value at roughly $36 billion, and is now considered one of the most valuable private companies in the world. The financing will be used to help finish up their 3 major projects: Crew Dragon, Starlink and Starship. Crew Dragon’s purpose is to fly NASA astronauts to the International Space Station, and also take a few wealthy tourists to space. Starlink is trying to create a global network of satellites that will be able to provide high speed internet any place in the world. Starship is the more commercial version of Crew Dragon. This would be a reusable space ship that could take nearly 100 people to the moon and Mars for summer vacations in space.

Comments are closed.