Your Tuesday Market Blip 4/28/20

Your Tuesday Market Blip 4/28/20

Stocks opened the day higher but reversed and close lower on mixed volume. The Dow fell 32 points to 24,101 at the closing bell. Google reports earnings after the close.
Earnings reports are coming in fast and furious. Seattle based F5 Networks reported better than expected results as online work from home video demand is higher than a kite. Revenue moved up 7% while net income was down 13%. 3M also reported better than expected results with a 3% revenue gain and a 3% drop in net income. The maker of the M95 mask said it was suspending share buybacks, lowering capex spending and prioritizing organic investments and the common stock dividend. Home builder DR Horton also posted decent results with a 9% revenue gain and a 40% jump in profits. What was most encouraging about the earnings call was that CEO David Auld noted sales of new homes had declined in early April but in the past two weeks they have observed an upturn in sales. This news led other home builder stocks to trade higher on the day.
With the price of oil in the gutter and drillers shutting in wells, people in the oil business are looking to store oil wherever they can. Some pipeline companies are petitioning regulators to repurpose pipelines into long skinny storage containers while others have been putting oil on ships and parking them off the coast. There are over 27 ships currently anchored off the coast of Southern California. The CEO of Nordic American Tanker, Herbjorn Hansson was interviewed on Jim Cramer’s Mad Money last week and he said that business was the best he had ever seen with demand for storage pushing day rates to $70k per day. After expenses he said they were netting $50k per ship on a daily basis. As my old logging boss would say “Gee Viss!”
US consumer confidence fell like a rock to 86.9 in April from 118.8 in March. This reading was the lowest in 6 years. Within the index itself the present conditions reading fell by a record 90 points while the future outlook index actually rose from 86 to 93.8.