Your Monday Market Blip 5/11/20

Your Monday Market Blip 5/11/20

Stocks opened the week mixed with the NASDAQ higher while the Dow fell. At the close the Dow was down 109 points at 24,221. Trading volume was lower for the day. IBD still has markets in rally mode while BTS toes a cautious line. Tech stocks continue to lead.
The S&P 500 Index hit a low on March 23rd at 2,191 and by April 13th the index rallied up to roughly 2,700 when Goldman Sachs put out a research piece saying a market bottom has been put in place. Today the index sits at roughly 2,900 and Goldman is now grabbing headlines with another market research piece calling for a potential 20% correction which would put the index back at 2,400. They are basing their call on a lengthy restart for the economy due to various factors like the risks of a reinfection, no corporate stock buybacks, trade tensions, etc etc. Goldman is also predicting that by the end of the year the index will be at 3,000. The takeaway here is that in such unprecedented times it pays to keep some dry powder.
AMC Entertainment Holding which is based in Kansas and owns 636 movie theaters in the US saw its stock plummet from $6 per share in March to $2 on April 17th but since then has rebounded and today traded over $5 on rumors that Amazon might make an offer to buy the company. The current market capitalization of AMC is $500 million and in normal times they generated over $5 billion a year in revenue. It will be interesting to see how this plays out but the cheap price could be an opportunity for Amazon of gain more clout in Hollywood.
Troop 100 has announced it will postpone the planned canoe trip to Northern Tier and instead make the trip in 2021. The troop continues to meet via zoom with no word yet as to the status of summer camp which was scheduled for mid-July. The lunkheads are restless.

Comments are closed.