Your Wednesday Blip 7/22/20

Your Wednesday Blip 7/22/20

Rising tensions between China and the US coupled with news on the vaccine front weighed on investor sentiment in a choppy session. At the close the Dow was up 165 at 27,005. Trading volume was lower. While IBD still shows markets in rally mode BTS has moved back to a split position of high yield and treasury bonds which indicates they see some upside but are wary of volatility and the risk of a sudden pullback.
The US State Department today ordered China’s consulate in Houston, TX to close its doors and vacate the property by Friday. Reasons behind the sudden move stem from accusations that the consulate is a spy center and several members of Congress said the move was long overdue. In response to this the US dollar rose against the Chinese yuan.
Encouraging news came from the housing sector as existing home sales in the US shot up 20.7% last month. This was the biggest percentage gain since 1968 and follows three months of declines. The gurus had expected a rise of 24%. 30 year mortgage rates averaged 2.98% which was the lowest since 1971.
Shares of Boeing were lower after the FAA decided to add a 45 day public comment period to the 737 Max recertification process. This means the airplane will not be ready to go by September but more likely late October. If all goes well after the public comment period, pilot training will take place and it will be December or even early 2021 before the Max can return to passenger service.

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