You Thursday Blip 9/17/20

You Thursday Blip 9/17/20

After digesting yesterdays Fed comments the markets opened lower as profit taking, mostly in the tech sector, continues. At the closing bell the Dow was off 130 points to 27,901 on lower trading volume. This represents a 0.47% pullback. The tech heavy NASDAQ however fell 1.37% on higher volume indicating that tech stocks bore the brunt of the selling while value stocks held up better.
Shares of GE bounced up after CEO Larry “Big” Culp told gurus at a Morgan Stanley investor conference that cash flow in the industrial segment had improved and is now expected to turn positive this year instead of next year. At the last earnings report in July GE said its power division revenue was off 11% while the aviation unit posted a massive 44% decline in sales due to the collapse of air travel and the issues with Boeing’s 737 Max. While economic conditions have begun to benefit GE as a whole the company internally continues making improvements with cost and efficiency measures that are starting the bear fruit.
Another stock that is rising off the bottom lately appears to be Ford as the company is making some headway with its EV initiatives. The E Mustang looks to be a good car and more importantly Ford is now testing an electric F-150 pickup. The company has begun construction in Dearborn, MI on a factory that will build the new trucks with a targeted delivery time of late 2021. Other electric trucks scheduled to hit the roads late next year include the Cybertruck and a GMC Hummer EV.
The scouts are gearing up for our annual Christmas Tree sale. This year will be a challenge and the goal is to have the sale without it turning into a super spreader event. Logistical challenges abound the biggest one being that we cannot sell as many trees in such a tight space but with smart management and plenty of lunkheads eager to get out and work we should be able pull it off and secure funds for trips next year to Norther Tier, Philmont as well as resume our annual summer camp pilgrimage to Camp Parsons.