Your Thursday Market Blip 2/6/20

Your Thursday Market Blip 2/6/20

Positive trade news boosted stocks today. The Dow pushed further into record territory with a gain of 88 points to 29,379. Trading volume was lower on the day. IBD has markets listed as “stocks in rally” as opposed to last week when they were listed as “rally under pressure”. As part of the phase one trade deal with China, the CCP agreed to cut tariffs on approx. $70 billion in goods. China faces a possible bursting of its “twin bubble” of debt defaults and housing prices as its efforts to control the coronavirus mean there will be little movement of trade, travel and commerce until a general quarantine might be lifted on February 10th.
With all the political theater in the US and around the globe these days Twitter is making bank on the tweet storm and reported much better than expected numbers. Revenue for the quarter crested the billion dollar mark for the first time up 11%. Net income meanwhile fell 19% due to rising expenses and a surge in headcount but the gurus were happy with the results and sent shares up 16% on the day. It was expected that daily active users would come in a 148.1 million but the actual figure was 152 million which was a jump of 21%. The US is Twitter’s largest market while Japan checked in at number 2. Going forward twitter plans on increasing its headcount by 20% as it optimizes its platform.
Shares of Boeing jumped after encouraging news came out regarding the 737 Max certification. FAA head Steve “Mad Max” Dickson said that international air safety regulators were close to agreeing on final fixes that the Max needed before it can return to service. Certification test flights could resume in a few weeks with a possible return to service by June although no guarantees were given. Production could restart well ahead of the return to service date which would be good since local subcontractors have been laying off workers while production is suspended.