Your Monday Blip 7/27/20

Your Monday Blip 7/27/20

Earnings reports on tap this week include Amazon, Faceplant, Apple and Exxon. Vaccine and fiscal stimulus news pushed markets higher with the Dow up 114 at 26,584. Trading volume was higher plus the NASDAQ rebounded a bit from last week’s profit taking. IBD has markets in rally mode and BTS has 50% exposure.
According to the latest housing report from real estate firm Redfin, listing prices of homes for sale were up 13% to a high of $328,500 during the 4 week period from June 12th to July 12th. Closed prices were up 6% indicating that buyers are coming up to levels that sellers are looking for. Homebuyer activity also posted a mid-summer surge even in the face of the pandemic with house tours up 12%, The Redfin homebuyer demand index was up 33%. The housing market usually slows during the summer as people go on vacation but with those plans dashed and with mortgage rates low buyers appear to be looking to take advantage of the situation. The supply of new homes hitting the market fell 5% and total homes for sale was down 28% showing the supply demand imbalance and low inventory continues.
Shares of biotech Moderna bolted higher after the company started its phase 3 vaccine trials. On Sunday Moderna announce it had received another $472 million in funding from Uncle Sugar to expand its late-stage trials. The federal program to develop a vaccine is called “Operation Warp Speed” and that certainly seems to be the case as Moderna is on track to get a vaccine to market in record time. The Feds have also given money to the AstraZeneca - Oxford University team as well as another promising treatment from the Pfizer – BioNTech duo.
Next week Bill will be on “vacation” hiking in the North Cascades with several Troop 100 Eagle Scouts and their dads. We are hiking the famed Ptarmigan Traverse. John and Cleo will be minding the store and watching the markets.

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