Your Tuesday Market Blip 5/19/20

Your Tuesday Market Blip 5/19/20

After yesterday’s rally, stocks consolidated and the Dow fell 390 points to close at 24,206. Trading volume was very light. WTI crude oil continues to creep higher gaining another two points to close at $32.36 per barrel.
The Good: Walmart reported earnings this morning posting a revenue gain of 8% and a net income increase of 4%. Both readings beat guru estimates. Online e-commerce sales jumped 74% and same store sales in the US were up 10%. There were fewer transactions at stores however the average transaction was 16% larger. The company pulled forward guidance and shares moved up to near all-time highs.
Home Depot posted a 7% revenue rise and a drop in net profits of 8%. Same store sales were up 6.4% beating estimates by a wide margin. The number of customer transactions was down and the average ticket size was up 11%. Like Walmart, Home Depot suspended its forward guidance.
The Bad: UW Medicine announced furloughs of 1,500 workers on Monday. The affected staff will be off for one to eight weeks and will continue to get benefits. The hospital is looking at a $500 million financial hit from the shutdown.
Housing starts fell 30.2% in April which was less than expected. The numbers suggest there is demand for new homes once the lockdown ends.
The Lunkheads: Oregon Scouting has canceled summer camps for this year which includes Camps Meriwether and Baldwin. Our troop is looking to shift over and attend Camp Parsons in Washington in early August. Adult leaders are working out the details. Camp Parsons just celebrated their 100th anniversary last year and the camp has been in continuous operation since 1919 and working hard to continue the tradition of turning lunkheads into fine young men.

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