Your Wednesday Blip 10/28/20

Your Wednesday Blip 10/28/20

Rising covid infections pushed stocks lower. An analysis of the rising covid wave in Europe points to young people out partying and drinking in bars as the main culprit behind the rising infections. At the close the Dow was lower by 943 points to 26,519. Trading volume was up. Losses accelerated into the close during what some call “happy hour” which is when ETF counter party’s need to square their books with trades that occurred during the course of the day. The Dow is down 8% from its recent high and is back at support levels last seen in late September.
Here are some earnings highlights:
Cat warned of weakening heavy machinery demand, Eli Lilly missed expectations and lowered guidance. First Solar beat estimates as sales jumped 70%. Raytheon fell as defense weakness added to commercial aerospace woes. 3M fell on rising healthcare costs. GE beat estimates and reported a surprise positive cash flow. Power and renewable energy sales rose while aviation was down and GE is on track with its turnaround as margins are starting to expand. Microsoft beat estimates on the strength of its cloud computing with revenue up 12% and profits gaining 32%.
Boeing reported its quarterly results with revenue coming in 29.4% lower while posting a loss of $1.39 per share. The results were better than expected. The company lowered its order backlog by 4% to $393 billion. It also cut another 11,000 workers and burned through $4.82 billion in cash. The company said the 737 Max is close to getting approved to fly again and Boeing leadership expects a thumbs up before the end of the year.
The LA Dodgers won the World Series but a report from online sport news site called “The Athletic” said Major League Baseball lost $3.1 billion this year due to the pandemic which kept fans away and shortened the season. Clubs are laying off scouts and cutting staff amid a drop in advertising and broadcast revenue. It could be a long winter for professional baseball.