Your Thursday Blip 11/19/20

Your Thursday Blip 11/19/20

Stocks traded most of the day in the red but came positive in the final hour (happy hour) and the Dow closed out the session up 44 points to 29,483. Trading volume was mixed.
Unemployment claims last week came in higher than expected rising to 742k last week and up from 711k the prior week. Meanwhile continuing claims fell from 6.8m to 6.3m. There is variability in the weekly data but the bottom line according to FHN economist Chris “Real” Low is that economic growth continues though at a slower pace than a couple months ago.
Home Depot reported earnings that topped estimates. Sales were up 23% and net profits were higher by 26%. Comparable sales for US stores was 24.6% but gross margins fell slightly. Customer transactions grew 13% and the average ticket price was 10% higher at $72.98. Home Depot also purchased HD Supply for around $7 billion. Back in 2013 Home Depot spun HD Supply off in an IPO but is not buying it back in an effort to strengthen its position in the MRO market (maintenance, repair, Operations).
Macy’s posted its latest earnings report and while the numbers were better than guru estimates they were still the opposite of what Home Depot did. Sales were down 23% and the loss per share was 19 cents. From the bottom of the pandemic however revenue has gained back about 33% but still remains about 24% below levels that were seen during normal times.

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