Your Wednesday Blip 8/5/20

Your Wednesday Blip 8/5/20

Stocks continue to push higher as the Dow closed the day up another 373 points to close at 27,201. Materials and commodities have been doing well as investors anticipate inflation due to the mass injection of funds put into the system from Congress and the Fed, and also because of the Fed’s stance that they will allow for more inflation in the economy as it recovers. Gold is now around $2,050 an ounce, and other commodities have been seeing strong gains as well too.
Disney shares moved higher as they reported better than expected earnings. Sports has returned, and Major League Baseball has reported increased ratings, which is good for Disney-owned ESPN. Additionally, they now have over 60 million paid subscribers on Disney+, and 100 million paid subscribers across Disney+, HULU, and ESPN+. Their goal was to hit the 60 million paid subscribers on Disney+ by 2024, and the fact that they did that 4 years earlier than expected is very good news, and gives Scrooge McDuck a much bigger pool of money to dive in to.
Two online health providers, Teladoc and Livongo, announced a merger today. Both of these companies allow patients to receive medical care in their home, via virtual meetings like Zoom or Microsoft Teams. Their stocks have been on fire this year, as Teladoc is up nearly 250% for the year, and Livongo is up about 500% for the year. Teladoc will buy out Livongo in a combination of cash and stock, and they are actually strategically using the run up in their stock to fund the purchase of Livongo. This deal did not sit well with investors, and today they both traded off over 10%.

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