Your Thursday Blip 10/1/20

Your Thursday Blip 10/1/20

Stimulus hopes and a dip in jobless claims boosted stocks at the opening but with airlines furloughing thousands of workers markets became volatile as pressure increased on Congress and the White House to reach a deal. At the close the Dow was up 35 points at 27,817 on heavy trading volume. IBD upgraded markets to “rally” mode again and BTS continues to maintain a defensive posture.
The Federal Reserve extended its ban on bank share buybacks through the end of the year for banks that have assets over $100 billion smackers. The ruling also extends a cap on dividends paid to shareholders. Some big banks like JP Morgan had indicated an interest in resuming share buybacks but this news will put that on hold.
FAA Chairman Steve “Air Head” Dickson flew the Boeing 737 Max yesterday for about two hours and after the flight said “I like what I saw on the flight this morning”. Dickson also had meetings with leadership at Boeing to discuss manufacturing issues. Boeing management meets today via Zoom to discuss moving 787 production from Everett to South Carolina. The Wall Street Journal says it’s a done deal but Boeing has not said anything official yet. The city of Everett is bracing for the worst.

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