Your Wednesday Blip 6/24/20

Your Wednesday Blip 6/24/20

Fears of a rising tide of covid infections caused markets to retreat on heavy trading volume. The Dow pulled back 710 points at 25,445. The Dow lately has been finding support at the 50 day moving average which is roughly 24,800 and resistance at the 27,500 level. IBD still lists markets in rally mode while BTS has pulled out of high yield and is defensive with a cash/treasury mix.
Winnebago reported earnings yesterday and the results were interesting in that they reveal a shift in consumer travel trends. While revenue came in with a 24% decline and the company lost 0.21 cents per share due to the temporary closure of manufacturing, the results were better than guru estimates. Throughout this shutdown period however the backlog for towable units increased 86% while the motorhome backlog jumped 99%. CEO Michael “Happy” Happe noted the covid-19 pandemic has altered how people want to spend their leisure time. He said that RVing and boating are increasingly seen as safe ways to vacation as opposed to getting on an airplane and staying in a hotel. Shares of Winnebago have recovered sharply from March lows and recently hit all-time highs as the RV industry is looking like a winner in the wake of the virus outbreak.
Housing markets continue to show choppy action. Existing or “used” home sales for May fell 9.7% to a seasonally adjusted level of 3.91 million units. The price of a median home rose 2.3% to $278,200. New home sales rose 16.6% in May at an annualized pace of 676,000 units. Overall the data suggests a gradual yet choppy recovery in housing is underway.
The iconic Segway personal transporter will cease production on July 15th after a 20 year run. The big question on everyone’s lips is ..”How will mall cops get around?” I guess it’s back to the golf carts or maybe those electric scooters.

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