Your Tuesday Blip 7/21/20

Your Tuesday Blip 7/21/20

The Dow surged on strength in oil stocks led by Chevron and Exxon. At the close the Dow was up 159 at 26,840. Trading volume was up. After yesterday’s record high in the NASDAQ, tech stocks took a breather today and pulled back a bit. Adding to upside bias in equities across the board is continued news of vaccine development plus Congress appears to be making progress on another stimulus package.
Lumber futures are on the move. After bottoming in April at $349 per thousand board feet the Random Lengths Framing lumber Composite index recently hit $523 per thousand. The latest HMI (Housing Market Index) is back near highs with builders and remodelers reporting a jump in demand as people shift from congested cities to neighborhoods and single family homes in the burbs. During the initial shutdown, sawmills continued to take in logs while lumber demand fell causing yards to fill up before logging was curtailed. Now with demand on the rise again some mills are getting back to work and getting the supply chain to a more normal level.
Earnings reports are coming in at a decent clip. IBM was up after beating quarterly earnings expectations. Coca-Cola was higher after it signaled a demand recovery and defense contractor Lockheed Martin was higher after beating street estimates. Lockheed’s sales were up 12% and their order backlog hit a record $150 billion in orders. Margins were also higher resulting in a 17% increase in profits.

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