Your Weekly Blip 10/16/20

Your Weekly Blip 10/16/20

Stocks ended the week on mixed note with the Dow higher while the NASDAQ was lower. At the close the Dow stood at 28,606 up 112 on heavier volume. Moves by Cat and Boeing pushed the Dow higher. For the week the Dow finished up about a tenth of a point. IBD continues to list markets in rally mode while BTS continues to take a more cautious approach.
Patrick “Circle” Ky, Europe’s top aviation regulator said changes to the 737 Max have made the plane safe to fly. The EASA is now performing final document reviews ahead of a draft airworthiness directive which, after it is released will be followed with four weeks of public comment. Meanwhile on our side of the pond the FAA is preparing an order to clear the Max for a return to the skies.
It looks like Britain will swim away from the EU with a no deal “hard Brexit” on January 31st this year. After days of negotiations in which Britain pushed for a “Canada style relationship” where the two sides would allow easy trade without the EU exerting political control over the British Parliament, France threw a football into the arena and demanded Britain surrender its fishing waters as part of a deal. This was unacceptable to the Brits and they walked away. A big sore spot in England has been the decimation of its fishing industry when the EU took control and opened up British waters to other member nations. When Britain leaves the EU its control of coastal waters will jump from 12 nautical miles to 200 nautical miles which, for an island nation, is a big deal. Fishing rights were one of the reasons Iceland declined EU membership in 2013.
Retail sales in the US posted their 5th straight month of growth with a 1.9% increase as they continue to recover from the shutdown. Consumer spending makes up two-thirds of US economic activity. Gurus had expected a retail sales increase of 0.7% so todays reading more than doubled expectations. Sales at clothing stores were up 11% while car dealerships and repair shops experienced a 3.6% increase. Sporting goods were up 5.7%.

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