Your Thursday Blip 7/23/20

Your Thursday Blip 7/23/20

Stocks fell after a weaker than expected unemployment claims number came out. The weak number suggests the recovery is hitting some bumps as reopenings are pushed back. The Dow closed the day down 353 at 26,652 on heavy trading volume. This shows that resistance at the 27,000 level continues to persist.
Tesla reported earnings yesterday and the number handily beat Wall Street estimates with a 5% revenue drop and an increase in net profits of 295%. The gurus had expected the company to post a small loss of 14 cents per share due to having shut production facilities during the initial stages of the pandemic. Highlights contained in the report were that the company tripled the number of solar roof installations and also announced it was going to build its next factory in Austin, TX where the Cybertruck and electric semi will be built. Elon Musk hinted the Tesla Roadster will be built in California next year and the company was working on two new electric car designs.
Microsoft reported better than expected numbers with a revenue gain of 13% and profits higher by 7%. While the numbers were better than expected they did not inspire the gurus which led to some profit taking in the stock. Microsoft is benefiting from the work and learn at home trends and CEO Nadella cited customers who have built their digital capacity are recovering faster and stronger from the initial covid selloff.
Housing stocks were higher after Meritage Homes reported better than expected earnings. Revenue soared 20% and net income gained 82%. The number of homes closed climbed 23% and orders grew 32%. The company raised its guidance going forward as low interest rates coupled with the recent trend toward single family ownership and working from home gains steam.

Comments are closed.