Your Wednesday Blip 7/8/20

Your Wednesday Blip 7/8/20

Markets finished the day slightly positive as Apple, Microsoft and Amazon hit a new highs plus Chinese stocks continue to rally. At the close the Dow gained 177 to close at 26,067.Trading volume was up. The NASDAQ continues to hit new highs as technology stocks are all the rage. From a funds flow standpoint healthcare is getting the most inflows followed by technology. In terms of beaten down value however the banks and energy are in the ditch and getting no love. This week Warren Buffett stepped in and purchased a natural gas pipeline from Dominion Energy for just under $10 billion smackers. The entire US pipeline sector is valued at less than the value of either Microsoft, Apple or Amazon.
Bankruptcy filings in traditional brick and mortar retail continue to weigh on sentiment. In May there were 6 retailers that went under and in June vitamin retailer GNC also bought the farm. So far in July Lucky Brands has been unlucky and Brook Brothers today announced it was filing chapter 11. Brooks Brothers opened its first store in 1818 in lower Manhattan and hopes to continue operations having lined up a $75 million loan from WHP Global. Two thirds of Brooks Brothers 4,000 employees are on furlough.
Solar stocks have taken off after San Francisco based Sunrun announced a buyout of Utah based Vivint Solar. The $3.2 billion all stock deal will make Sunrun the largest rooftop solar company surpassing Tesla and accounting for 16% of the market. Tesla is at 14% of the market. The merger reflects a trend of increasing competition in the industry as rising demand for renewable energy attracts dollars to the space.
The Troop 100 Venture Crew is getting ready to do some social distancing this weekend on the Olympic Peninsula north of La Push. We will see how it goes as this is the first overnight hike for the troop since February. One guy told me that Ocean Shores was inundated with RVs over the 4th of July weekend. He is a lifelong resident of the area and had never seen so many RVs there before.

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