Your Monday Blip 9/14/20

Your Monday Blip 9/14/20

Markets pushed higher at the open thanks to merger and vaccine news. At the close the Dow was higher by 327 points to 27,993. Trading volume was mixed. IBD continues to show the uptrend being under pressure.
It was “merger Monday” as several Wall Street M&A deals were announced. Gilead Sciences is buying Immunomedics for $21 billion, Verizon is buying Tracfone for $6.25 billion, Nvidia agreed to buy SoftBank’s Chip division Arm for $40 billion and Oracle might now be the company that gets TikTok after Microsoft/Walmart announced they had been rejected by ByteDance which owns TikTok. The deal looks to be done as a partnership instead of a buyout and is currently under review by the Feds.
Timber companies are having a crazy year. After mills closed in March due to the pandemic they sat idle for a couple months but then demand exploded as home repair and new home construction kicked in. Lumber futures have climbed 50% this year and are on pace for the largest gain since 1993. Home Depot reported that lumber was the best performing segment in its stores in Q2 and hinted at shortages. Mills are stocking up on logs but with fires closing the woods they might see further supply disruption. Its been a roller coaster ride for the timber industry but with housing being a bright spot and with interruptions in the supply chain it is reasonable to think that lumber prices will hold recent gains.

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