Your Monday Blip 9/28/20

Your Monday Blip 9/28/20

Overseas market were higher on Monday after China reported its fourth straight month of rising industrial profits and Japan reported a rise in its leading economic index. These items sent markets across Asia higher and helped US markets open in the green. At the close the Dow posted a solid gain of 410 points to finish at 27,584. Trading volume was higher and the Dow regained its 50 day moving average line which is positive from a technical standpoint. Here at Greystone we have seen signs that investment houses are preparing themselves and their clients for increased market volatility heading into the election on November 3rd. Steps include tightening margin requirements, raising cash and putting hedges in place.
Shares of Boeing were higher on news the head of the FAA will fly the 737 Max this week as part of the recertification process. It is also expected that European regulators will soon recertify the plane for flight as well. Shares of Boeing were up over 6% on the news.
Cleveland Cliffs, a Cleveland based Steel company today announce it was purchasing the US operations of Luxembourg based ArcelorMittal for $1.4 billion in stock and cash. When you include liabilities and pensions the deal is worth closer to $3.4 billion. Cliffs expects the transaction to add immediately to the bottom line and shares of both companies were higher on the news. The business Cliffs is acquiring has more than 18,000 employees and 25 facilities to include mines and finishing operations. The deal will make Cliffs the largest producer of flat rolled steel in the US.