Your Thursday Blip 10/29/20

Your Thursday Blip 10/29/20

Stocks bounced from yesterday’s selloff. The Dow closed the day up 139 at 26,659. Trading volume was lower. The tech heavy NASDAQ did well and was up 180 points at 11,185. IBD still has the rally as being under pressure. Amazon, Googs and others report earnings after the closing bell.
US 3rd quarter GDP came in at 33.1% besting estimates which had called for a 31% increase. The record rise comes on the heels of a record fall in the 2nd quarter. Personal consumption was the main force behind the reported number but inventory investment, exports and residential investment all contributed as well. Real GDP remains down 2.9% year over year and what the 4th quarter holds is anyone’s guess. While major areas of the economy like housing and tech remain strong other areas that contribute less to the economy like entertainment and leisure continue to struggle. Brian Wesbury, Economist at First Trust and honorary member of the Westport Mafia puts out data on various parts of the economy and his numbers show positive trends as TSA checkpoint data is up 16% while hotel revenue per room is up 5% and box office receipts are up 14%. These figures show that some of the hardest hit areas are improving.
Ford Motor reported better than expected earnings as revenue grew 1% while net income gained 88%. This was the best quarter for Ford in a couple of years and was driven by the company’s decision to allocate capital to its strengths which are pickups, SUVs and commercial vehicles while phasing out some unprofitable sedans. At the end of the quarter Ford had almost $30 billion in cash and continues to invest in electric vehicles.
Joke of the day: An investor decided to put all his money in the country of Ireland. His broker asked “Why?”. The investor replied “because the capital city is Dublin!” ha-ha