"Fed chairman Powell comments help fuel optimism among investors" by: John Sample

   At the end of last week the Dow was down over 600 points for May and we were only halfway through the month. 
   You get news this week that Moderna’s early-stage Covid-19 study showed its vaccine was creating antibodies much like those who had contracted the disease. 
   There were only eight cases and a more thorough study was needed. 
   That, along with Fed Chairman Powell interviewed on 60 Minutes with a fairly positive attitude, seemed to change investors’ mood.
   We’ll now see if our government will move from stay at home to restarting the economy. 
   It was also a bit of good news for the State of Texas that WTI crude moved back to a break-even price of $32. 
   It has only been a couple of weeks since WTI dropped to a negative level at the close of futures contracts for that month. 
   As quickly as wells were shut in, they can be reopened. 
   This goes along with Powell’s thoughts that the U.S. economy will recover in the second half of this year. 
   That scenario could be thwarted with a reemergence of the Pandemic in the fall as the economy opens. 
   We could also though have a vaccine by the fall. With all the despair, a little optimism is welcome.
   Of importance to investors is the note that Powell also said that GDP could drop by 30%. 
   The next question pointedly asked if he thought we were headed for another depression and he rejected that idea. 
   We will witness a real tug of war between optimism and pessimism as the summer wears on. 
   We are not through with this or any new virus to come. 
   As one of my friends said, there are just so many people. 
   Disease will be a reality of life.  
   This time, however, maybe we are learning that we can change and move forward with safety in mind.
   Another bit of possible good news for the State of Texas is that Tesla is looking at Austin and Tulsa for its next factory. 
   The high-tech world already ruined Austin and I moved away to the lake so I hope for more business over the quality of life. 
   Austin is a center for chip production, and on the other side of the coin, new rules will limit the sale of chips to Huawei. 
   It appears that some company will have to step into Huawei’s place in the U.S. to support 5G. 
   I wonder if that could be the rebirth of Intel.
   All I can say is last week was one of the worst for me and this one looks much brighter. 
   And, just like that my favorite bar/restaurant reopened. 
   It shows you how quickly things can change.  

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