Your Thursday Blip 7/16/20

Your Thursday Blip 7/16/20

Stocks pulled back as corona virus cases continue to rise. On a side note, Corona Beer maker Modelo is asking the World Health Organization or WHO to change the name of the coronavirus to the “Bud light virus”. At the close the Dow was off 135 at 26,734. Trading volume was very light today which signals that institutional traders were mostly standing pat.
Abbott Labs reported better than expected earnings for the quarter and with daily covid-19 tests topping 750k Abbott Lab’s diagnostic division is busier than a one legged man in a fanny kicking contest. While the company reported an 8% drop in revenue and net income lower by 30% the segment that does testing saw its revenue triple. Shares are trading near all-time highs and gurus are raising estimates going forward.
Bank of America reported a 50% drop in net income and set aside an additional $4 billion in loan loss reserves as CEO Brian “The Brain” Moynihan said the current environment is the most tumultuous period since the great Depression. Revenue at the bank was down 18% which included a 57% jump in capital markets revenue being offset by a 98% drop in consumer banking. Overall the results were better than expected. Deposits grew from $1.4 trillion to $1.66 Trillion and credit card metrics have improved.
The commerce department reported retail sales up 7.5% in June which was better than then 5.2% increase gurus has expected. Meanwhile the Labor Dept. reported another 1.3 million Americans filed for unemployment last week which was level with the prior week. The latest reading was worse and expected.

Comments are closed.