Your Thursday Blip 1/21/21

Your Thursday Blip 1/21/21

Stocks traded mixed as tech shares continue to lead the parade. At the close the Dow posted a 12 point loss at 31,176 while the NASDAQ gained 73 at 13,530. Trading volume was mixed. Groups doing well are renewable energy plays, housing and a few big tech plays like Amazon, Mircopoopie and Faceplant.
United Airlines reported revenue that was lower than expected and losses that were greater than expected. In the 4th quarter United had $3.4 billion in revenue down 68% from a year ago. Losses came in a $6.39 per share. The overall cash burn rate is $33 million per day and the aircraft load factor is 55.6%. Many airlines got a bump in air travel in December but it was not as much as expected and cost cutting remains the order of the day. United has $19 billion in liquidity and is expected to receive another couple billion from Uncle Sugar but other than that the company is expecting a slow return to normal times that could take upwards of 3 years.
Natural gas pipeline biggie Kinder Morgan reported Q4 numbers which were better than expected. Revenue fell 7% while net income grew 4%. Natural gas shipping volumes rose 6%. A cold snap and freezing temperatures in Asia produced a 50% jump in volumes from Kinder’s LNG facilities which offset gas volume declines in the Rocky Mtn region. Kinder Morgan pipelines supply 40% of US Nat gas and during the pandemic the company was able to generate enough cash flow to cover capex, increase the dividend 5% and reduce debt.