Your Thursday Blip 11/5/20

Your Thursday Blip 11/5/20

Stocks continued to rally with the Dow gaining 542 points to close at 28,390. Trading volume was lower for the day. There had been reports of cash building up on the sidelines prior to the election and now it appears some of that is working its way back into stocks. Tech stocks continue to lead the way but today the rally was very broad as banks, materials and utilities joined the fray. IBD has switched its indicator to “market in rally” while BTS continues to hold cash.
On the travel front, Seattle based Expedia reported Q3 numbers which, while ugly, beat Wall Street estimates and showed big time sequential improvement over the prior quarter. Revenue was down 58% but was up 3 fold from the prior quarter when the pandemic was in full effect. The company lost 22 cents per share compared to a loss of over $4 bucks a share in Q2. CEO Peter Kern said the global travel industry faces a bumpy path to recovery with uncertainty surrounding vaccines, therapeutics and recent increases in covid cases.
Shares of GM bolted higher after reporting revenue that was flat from a year ago while net income was lower by 28%. The results however were much better than expected as cash flow was 78% higher than consensus estimates. CFO John Stapleton said that sales in the US and China are recovering faster than anticipated while demand for high margin trucks and SUVs coupled with cost reductions helped deliver solid results.