Your Wednesday Blip 9/2/20

Your Wednesday Blip 9/2/20

The Dow rallied above the 29k mark as beaten down value stocks like banks and utilities played catch up to their high flying tech brethren. At the close the Dow was higher by 454 at 29,100 on heavy trading volume.
Joel Kan over at the Mortgage Bankers Association noted that mortgage applications have now posted 15 straight weeks of year over year increases. Lenders are reporting strong demand coming from a delayed spring buying season coupled with people seeking more space outside of cities. The latest weekly data showed mortgage applications up 28% from last year at this time.
The latest manufacturing data from both IHS Markit and ISM showed the sharp rebound in US manufacturing continued in August as the ISM purchasing managers Index stood at 56 which represents the third month in a row above 50 and the IHS Markit reading at 53.1 with new orders, exports and employment all rising last month. Chris “Willie” Williamson, chief business economist at IHS Market said the data shows new orders outpacing production which leaves some companies struggling to produce enough goods to meet demand. Backlogs of uncompleted work rose at the fastest rate since early 2019. While this is encouraging, Willie noted the recovery is not evenly distributed and that some manufactures face challenges.
Macy’s reported a narrowed loss during the second quarter as it began to reopen locations that had been shuttered due to the lockdown. The company reported that revenue sank 36% to $3.56 billion while posting a loss of $431 million. While in store sales showed a 35% drop online digital sales rose 53% from a year ago. Going forward CEO Jeff “Genie” Gennette was encouraged by the Q2 results and expects continued improvement in the back half of the year

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