Your Thursday Blip 10/8/20

Your Thursday Blip 10/8/20

Stocks opened the day higher largely due to restructure news from IBM and airline stimulus talks which are on again and off again. At the close the Dow posted a gain of 122 at 28,425 on higher trading volume. IBD continues to list markets in rally mode.
Airline stocks were higher today as the White House and Congress haggled over support for a standalone $25 billion federal aid program to protect airline jobs. Last week the initial aid program ended and airlines started to announce major layoffs, furloughs and pay reductions. Gurus have generally provided bullish views of the airline industry for 2021 as it seems they have enough cash to survive. Adding to the positive tone was recent weekly TSA data on the number of people going through checkpoints. The most recent weekly numbers hit 738k each day of the week up from 715K the prior week.
IBM today announced a restructuring plan that will ramp up its digital transformation and CEO Arvind Krishna said the company is laser focused on the one trillion dollar cloud business and as a result is spinning off its legacy enterprise hardware division. Going forward IBM will focus on its hybrid cloud computing business and its artificial intelligence. Shares were up big on the news and the company hopes to have the spinoff completed by the end of 2021.
The Puget Sound Business Journal is reporting that Irish Ryanair Group is getting ready to order 150 to 200 737 Max jets before the end of the year. The deal, if it happens could be worth $18.7 billion at list prices. The article said that Ryanair CEO Michael “Really” O’Leary is placing an aggressive bet on the return of pent-up demand for air travel when and if the covid crisis fades plus the company said the 737 Max offers a 40% reduction in aircraft emissions and 16% lower fuel burn.

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