Your Wednesday Blip 9/23/20

Your Wednesday Blip 9/23/20

Stocks opened higher then reversed lower as tech stocks renewed their selloff. At the close the Dow was lower by 525 points at 26,763 on heavier trading volume. The reasons for the pullback appear to be concerns over a delay in federal stimulus as the pace of the economic recovery slowed a bit as evidenced by ISM data which showed the recovery losing steam.
Housing continues to be a bright spot in the economy. KB Homes, a Los Angeles, CA builder of single family homes, townhomes and condos reported a 14% drop in sales and a 14% increase in net income. While new home deliveries fell 16% in the quarter during the pandemic, recent net orders for homes have increased 32% from year ago and in the face of this demand surge the company said it will resume land acquisition and development activities to boost its pipeline of new homes.
Tesla unveiled its latest battery technology yesterday. They developed a bigger battery cell called the 4680 battery cell which is the first tabless design and has a 5X increase in energy and a 6X increase in power capacity. The company estimates it will extend range and lower costs and allow them to eventually sell the Model 3 for $25,000. While Geeks were excited about the event Wall Street was upset because it will take a couple of years for the new battery to hit the market and in the age of “same day delivery” waiting two years is a frustration.

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