Your Thursday Blip 7/9/20

Your Thursday Blip 7/9/20

The tech stock love affair continues as the Dow fell while the NASDAQ hit new highs. At the close the Dow was behind by 361 points at 25,706 while the NASDAQ was up 55 at 10,547. Trading volume was unchanged on the Dow and higher for the NASDAQ. IBD still has markets in rally mode and BTS continues to rest on the sidelines.
While US markets were mixed Chinese stocks and Chinese mainland markets rallied for the eighth straight day moving the Shanghai Composite within 4% of its January 2018 high. Individual investors are piling into the Shanghai and Shenzhen markets after a slew of bullish articles by state run media outlets over the past week. Some US analysts are looking at this with a wary eye because while some Chinese companies are well run many are suspect and the fact that the CCP is telling middle class citizens to buy equities is like going to the store, picking up a copy of Fortune or Barron’s and buying whatever stock is featured on the headlines without any regard to risk, valuations, blah, blah, blah. This is a strategy that does not always work out well and it begs the question….is the CCP playing a sort of “pump and dump” scheme on its own citizens?
Drug store Walgreens Boots Alliance reported earnings that were not as good as expected. While revenue was slight better than guru estimates the company saw earnings fall 44% which was much worse than the 17% decline which was forecast. Shares of the company lost over 7% even though the company said it would raise its common stock dividend by 2%.
Here in Seattle the kitchen gadget retailer Sur La Table filed for chapter 11 bankruptcy. The company operates around 130 stores and while online sales doubled during the lockdown the brick and mortar stores sat idle. Sur La Table is working on selling itself to a California based private equity shop and hopes to continue operations under a more efficient structure. Currently the company has 121 of its stores open for business.

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