Your Tuesday Blip 1/26/21

Your Tuesday Blip 1/26/21

Earnings reports are coming fast and furious and investors are liking the results however the Dow cannot seem to break above current levels with any sort of conviction. At the close the Dow was lower by 22 points to 30,937. The Nasdaq also finished in the red. Stocks had opened the day higher but gains faded into losses as the day wore on. Trading volume was minimal.
General Electric reported earnings this morning and while revenue was off 16% net income lower by 62% shares nevertheless bolted higher because these results were better than expected. Free cash flow generation by the big manufacturer came in well above estimates and going forward CEO Larry “Big” Culp cited the company’s improving profitability and strong orders in power and renewable energy divisions.
Seeking Alpha had an interesting piece on how covid-19 brought the sharpest increase in the US poverty rate since the 1960s. They cited data showing the poverty rate in the US increased 2.4% which means that 8 million people are now considered poor. At the same time however there are 651 billionaires in the US and their combined net worth increased by almost three trillion smackers during the pandemic. The growing divide in wealth outcomes is troubling but what to me is a real head scratcher is that in all my years of watching markets and the economy I have never seen a Federal economic stimulus package given out when the stock market is at an all time high. Some are speculating that conditions like this will help foster higher interest rates and inflation in the months and years ahead.