Your Tuesday Blip 11/3/20

Your Tuesday Blip 11/3/20

Stocks surged out of the gate on heavy trading volume and held up well during the day to close with a gain of 554 points at 27,480. The rally was broad as value stocks like banks and materials surged while tech and healthcare sectors added to the days tally. All eyes now will turn to the tellie and the election results.
Over in China, Ant Group was about to have its blockbuster IPO and raise over $37 billion when suddenly the listing was suspended and Ant’s leadership was called to meet with bank regulators over certain “issues” related to the company. While it is not clear what the situation exactly is gurus in the US point out that Ant, which matches up online lenders with online borrowers, only underwrites 2% of these loans and that Chinese bank regulators want that increased to 30%. According to an article in the Taiwan News Ant’s desire to put technology ahead of finance is not sitting well with bank regulators.
In earnings reports Clorox cleaned up by booking record numbers for the third quarter. Sales were up 27% and net income jumped 103% as sales of cleaning products and bleach were strong. The company upped its forward guidance citing the desire of people stuck at home to have clean hands and clean counters.
AMC Entertainment which owns and operates 8,094 movie screens in the US posted a 91% drop in Q3 revenue and a loss that was huge. While these numbers were bad they were better than what gurus had expected. AMC has raised $900 million via debt and equity sales in hopes of staying alive. CEO Adam “AA” Aron said the company has secured $1 billion in concessions from creditors and has engaged in some assets sales as well. AMC has about enough cash to last one more quarter at the current burn rate and after that all bets are off the table. One interesting note was that during Halloween a lady up the street was giving away huge boxes of candy and it turns out she worked at AMC and was apparently helping them with their inventory reduction program!