Your Wednesday Blip 8/26/20

Your Wednesday Blip 8/26/20

Stocks continue to creep higher thanks largely to positive tech earnings, price target upgrades for outfits like Tesla/Apple and declining infection rates for the virus. When all this is combined with the fact that there is over $15 billion cash sitting in bank deposits earning zippo we might be seeing investors becoming more willing to invest into stocks. At the close the Dow was up 83 at 28,331. Trading volume was higher and markets continue to be listed as being in “rally mode” by IBD even though valuation levels are getting stretched in certain sectors.
Oil prices moved up as Hurricane Laura is expected to make landfall tonight. Over 500k people have been ordered to evacuate and 84% of oil output has been shuttered along with 61% of natural gas production. Refineries in the hurricane’s path are also being closed until things blow over. At the close WTI crude oil was trading at $43.60 per barrel. The EIA also reported that US crude inventories have now fallen 5 weeks in a row as demand for oil and gasoline continues to slowly recover.
Nordstrom reported Q2 numbers that were worse than expected. The company saw its sales drop 53% with store closings covering about half of the quarter. Gross margins fell from 26% to 20.9% and on a per share basis the company lost $1.54. Bright spots in the report were that cashflow was positive and CEO Peter “PN” Nordstrom said sales trends were improving into the second half of the year and the digital platform continued to see customer growth. Shares of the company traded at a 52 week low.

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