Your Weekly Market Blip 5/22/20

Your Weekly Market Blip 5/22/20

Stocks closed out the trading week on a mixed note with the Dow lower by 8 points at 24,465 while the NASDAQ gained about 39 points to 9,324. Trading volume was lower. For the week the Dow gained about 3.2%. An early selloff in the Dow reversed higher mid-day which was positive trading action. The lower volume was due somewhat to traders tuning out as they head into the long Memorial Day weekend.
WTI Crude Oil prices slid 4% on global demand concerns after China pulled its economic growth targets for the first time since the mid-1990s and decided to go King Kong on Hong Kong by proposing a law to clamp down on “dissent”. This move by the CCP circumvents the duly elected gubment of Hong Kong and is important since it could mean the US State Department will no longer consider Hong Kong a separate territory subject to all trade deals and tariffs that apply to mainland China. Markets in Hong Kong fell hard on the news. It will be interesting to see how this unfolds but it shows that the CCP is becoming increasingly authoritarian in its actions. Look for US manufacturers to bolt from China as tensions rise. India has opened its doors to firms that want to move production out of China.
Before the market crash and lockdown, real estate companies Zillow and Redfin had bolted to new highs on strength in their newly launched house flipping businesses. Then came the crash and both stocks were cut in half. Lately however these stocks have recaptured most of that lost ground as they reopen their house flipping business amid an emerging trend of low housing inventory, rising prices and a desire by many to move out of urban apartments and into a house with a yard where they can work from home and walk the dog.
The Scouts are putting up flags at the GAR (Grand Army of the Republic) cemetery on Capitol Hill in Seattle tomorrow. There will be no ceremony this year but next year we will have two ceremonies to make up for lost time!

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