Your Monday Blip 6/29/20

Your Monday Blip 6/29/20

Stocks opened higher thanks in part to a rebound in Boeing and positive housing data. At the close the Dow was up 580 points to 25,595. Trading volume was lower on the day and stocks continue to hold support within the current trading range of 24,800 on the low side and 27,000 on the high side. IBD continues to show markets in a confirmed uptrend while BTS is on the sidelines.
China is struggling as of late. Massive flooding across the country has affected over 11 million people in 26 provinces and according to uncensored media outlets in Taiwan the massive rain dump is putting the Three Gorges Dam under tremendous stress. On top of this the corona virus is back and causing lockdowns in Beijing and to round out the trifecta a border dispute with India is sparking a “boycott China” movement throughout India affecting trade between the two nations.
Housing markets in the US rebounded as buyers came back in droves. Pending home sales jumped 44.3% in May compared with April. The National Association of Realtors had been expecting a gain of 15% and called the jump in contract signings “historic”. Mortgage rates are 3.2% and the inventory of homes was 19% lower on a year over year basis suggesting a tight market.
After being grounded for 15 months, pilots for Boeing and the FAA will fly the 737 Max today and again later this week. The plane will be packed with specialists who will drink soda from a cooler and monitor all changes to the flight systems during the hop. Once these flights are done the data will be studied and pilot training will be finalized. The current schedule seems to indicate the 737 Max will be back in the air sometime between September and the end of the year.

Comments are closed.