Your Monday Blip 12/21/20

Your Monday Blip 12/21/20

It was an interesting day on Wall Street. Bullish news on the vaccine and stimulus front was offset by bearish news from Britain regarding a newly discovered strain of covid that caused renewed travel restrictions within and between Britain, Europe and Australia. The lockdown news in Britain sent US futures lower early but as the day wore on the Dow recovered on the strength of bank and steel stocks to close with a gain of 37 points to 30,216 on lighter trading volume. The upside reversal today was positive. Meanwhile the NASDAQ fell slightly along with the S&P 500 index because the newest member of the crew, Tesla, fell over 6% in price.
On Friday the Federal Reserve released the second round of the 2020 stress test and in doing so it issued a directive giving banks the go ahead for limited dividends and share repurchases. The allowances are based on income earned in the prior year and banks that posted net losses will not be allowed to participate. Bank shares responded positively to the news. JP Morgan responded by announcing a $30 billion share repurchase plan for Q1 2021. It will keep the common stock dividend at the current level. Goldman Sachs was also a big winner and other big banks like Citigroup and Bank of America also did well today.
Shares of sneaker maker Nike hit new highs as the company posted a 9% revenue gain and an increase in profits of 11% in the latest quarterly earnings release. Nike saw a rebound in sales from China of 24% while direct sales grew 32% in the quarter. While the company did not issue forward guidance several brokerage firms came in with stock price target updates and it seems Nike is a current favorite amongst the gurus.