Recap July 5: Tesla Makes History – Fed buys Apple, Microsoft (Recap Ep078)

07/05/20 • 20 min

In this week’s recap, the U.S. Federal Reserve has purchased the bonds of 794 different companies, including firms like Apple, Verizon, AT&T, & the U.S. divisions of Toyota, Volkswagen, & Daimler making up 10% of the amount spent. The plan is to buy $250B of debt already issued, and $500B in newly issued bonds. Fed officials say the goal of the buying is to maintain liquidity in the market for corporate debt, so that issuers are able to access capital, despite the economic downturn created by the COVID-19 pandemic.

U.S. economy added 4.8 million jobs in June, the most since the government started keeping records in 1939, as the gradual easing of coronavirus-related restrictions helped more businesses resume operations. Payrolls rebounded +2.5M in May after plunging by a historic -20.6M in April. Employment is still about 14.8 million jobs below its pre-pandemic level, with the jobless rate falling to 11.1% last month, from 13.3% in May, as more workers who were laid off earlier this year were able to return to their pre-pandemic jobs

China’s parliament on Tuesday passed national security legislation for Hong Kong, in violation of the treaty signed with the U.K. Sets the stage for the most radical changes to the former British colony’s way of life, since it returned to Chinese rule 23 years ago. Details of the law come in response to last year’s often-violent pro-democracy protests in the city.

Tesla surges 3.7% Wednesday & 7.50% Thursday to above $1,200 a share. It now trades at a higher market cap than Japanese carmaker Toyota. That makes the company the most valuable automaker in the world & caps off a 10-year run that went into hyper-drive over the last 6 months. Shares are up +188% this year & 414% in 52 weeks.

China accumulates 73 million barrels of oil in ships; Walmart will turn its parking lots into drive-ins; Boeing restarts flight test of 737 MAX; 83 tons of Chinese counterfeit gold was used for loans worth $2.8 billion; Bezos’ wealth breaks a new record; Pakistan Stock Exchange Attacked; advertisers protest against Facebook.

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Recap June 28: Tesla Horrible Quality – Worst Economic Crisis since Great Depression (Recap Ep077)

This week’s recap found two key factors: the markets were affected by fears of a second outbreak of coronavirus in the US and major economic powers, and global monetary stimulus to boost the economy.

Global stocks move higher in uneven trading on Thursday, as investors calculated the potential economic impact of a surge in U.S. coronavirus cases versus the loosening restrictions on the U.S. banking sector, while safer assets, including U.S. Treasuries & the dollar, oil & precious metals edged higher.

The U.S. government is now weighing new tariffs on $3.1B of imports from France, Germany, Spain & the U.K. As the E.U. prepares to open its borders to international travelers, it may also extend a ban on visitors from America, as Europeans are still prohibited from entering the U.S. under virus travel restrictions.

U.S. consumer spending rebounded by the most on record in May, which accounts for over 2/3 of U.S. economic activity, jumping 8.2%. The largest increase since the government started tracking the series in 1959, but the gains are not likely to be sustainable, with income dropping & expected to decline even further, as millions lose their unemployment checks starting next month.

U.S. crude storage hit another record; India to suspend some deals with Chinese firms; Duda & Trump to sign a defense cooperation agreement; Amazon to buy Zoox for over $1B; Nike suffers a quarterly loss; a rather powerful earthquake struck Mexico; world’s most powerful supercomputer seeks a cure for coronavirus; Billions of desert locusts invading Sanaa.

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Recap July 12: Elon Musk richer than Warren Buffett – Buffett starts to buy again (Recap Ep079)

In this week’s recap, we found that the U.S. markets had a mixed week, with gains made from fewer unemployment claims and a positive test for an anti-viral drug from Gilead Sciences overshadowed by a large increase in COVID-19 infection numbers. On Friday, the markets ended up positive.

Tesla CEO Elon Musk just passed Warren Buffett to become the world’s 7th wealthiest person. Its fortune rose over $6 billion on Friday after Tesla’s stock surged 10.8% to a record of $1,544 per share. Its market value now stands at $286.5 billion. J.P. Morgan boosts the surge in stocks, forecasting the manufacturing of 130K to 140K units a quarter by the end of 2020 up from 90K now.

The IEA reports global oil demand in the 1st half of 2020 plunged by -10.75M barrels a day, down -11% year to year. The forecast for the 2nd half is still down by -5.1M bpd. This means global oil demand in 2020 will average 92.1M barrels per day, down by -7.9M bpd versus 2019, a slightly smaller decline than forecast in the last report.

For the 1st time in 6 years, two U.S. Navy aircraft carriers are in the South China Sea as tensions mount, in the latest show of military might from the U.S. as it pushes back against China’s sweeping claim, to almost all of the 1.3 million square miles of the South China Sea, as its sovereign territory & in response to the buildup of military fortifications in the last few years, on several territorial disputed islands.

Tianwen-1 mission to Mars would be launched between July and August; an alleged case of bubonic plague in Bayan Nur; advertisers criticize Apple’s new user tracking requirements; Tesla is close to achieving level 5 in autonomous driving; Walgreens’ shares fall more than 6%; Bed Bath & Beyond plans to close more of its stores.

The post Recap July 12: Elon Musk richer than Warren Buffett – Buffett starts to buy again (Recap Ep079) appeared first on Investing & Day Trading Education: Day Trading Academy.