Your Tuesday Blip 9/1/20

Your Tuesday Blip 9/1/20

Teflon tech stocks continue to ride the momentum wave as the NASDAQ hit a new high while the Dow also closed up 216 at 28,645 on heavy trading volume. IBD continues to show markets in rally mode and also cited a statistic called the “accumulation/distribution” ratio which rose to A- meaning that mutual funds and big institutions are now net buyers of stocks by a fairly healthy margin. For the month of August the Dow gained 7.5% or roughly 2,000 points.
AstraZeneca became the third company to enter phase 4 trials for a coronavirus vaccine in the US. The partnership between it and Oxford University is seeking 30k adults over the ages of 18 to sign up for the trial. The program has the backing of the US gubment and joins rivals Moderna and Fizer/BioNTec as players in the late stage vaccine trials sweepstakes.
Shares of Zoom Video Communications shot higher after reporting earnings that were right out of the Pixar movie “Mr. Incredible”. Revenue rose 335% to $663 million while operating income went from $2.3 million to $188 million. Zoom said that free cash flow grew from $17.1 million to $337.3 million. The numbers were much better than guru expectations and forward guidance was pushed higher as investors jumped on the stock like hungry bulldogs on a meat wagon.
Home prices in the US rose 4.3% in June YOY and then another 5.5% in July according to CoreLogic. Reasons for the price boost are tight inventory, low financing costs and strong demand. The report noted that home prices in rural areas are rising faster than cities as urban flight continues.

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