Your Monday Blip 10/5/20

Your Monday Blip 10/5/20

The Dow opened higher as market anxiety eased over President Trump’s battle with covid. At the close the Dow was higher by 465 points at 28,148. Trading volume was lower across the board. Energy and material stocks were market leaders on hopes that Congress was making progress on a stimulus package.
IBD (Investor’s Business Daily) has markets back in rally mode but stressed the forecast is anything but clear. The news regarding President Trump’s covid test is the first of what is expected to be many “October surprises” before the election. One item on the radar comes from Pfizer which is expected to have results for its pivotal Phase III vaccine trial later this month. While we don’t know what lies ahead the bottom line is that gurus are expecting volatility to remain at elevated levels through October and are urging investors to tread with care.
Regal Cinemas is closing down and laying off over 45k workers. It hopes to reopen again in a couple of months if it is still in business. The sudden move by Regal was made because film production companies are delaying releases or pushing new movies directly onto digital platforms. The recent postponement of the latest James Bond movie was the straw that broke the camel’s back and caused Regal’s owner, Cineworld, to suspend operations in both the UK and US an effort to conserve cash. Back in 2018 British based Cineworld purchased Regal Cinemas with its 536 theaters.

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