Your Weekly Blip 10/30/20

Your Weekly Blip 10/30/20

All the big tech companies reported earnings yesterday and while the results were good the market reaction was not so good. It seems that with stimulus off the table and rising infections, investors are building cash heading into the pre-election weekend. At the close the Dow off 157 at 26,501. Trading volume was higher. While the Dow was down 0.6% for the day the NASDAQ fell 2.5%. Over the course of the trading week the Dow lost about 6% vs 5% for the NASDAQ.
Tweeter posted a 14% revenue rise and a 12% increase in net income however declining growth in signups sparked a steep selloff in the stock. Googs reported a 14% sales increase and a 13% decline in profits. Shares were higher as the results were better than expected. Faceplant came in with a 22% rise in top line numbers while net income increased 13%. Shares were lower. Apple posted a 1% rise in revenue and a 4% drop in profits. The sales figure missed estimates because phone sales in China fell 29%. Shares were lower due to lack of forward guidance.
Amazon crushed it with a 37% increase in revenue while net income exploded higher by 192%. Shares were down after the report because Wall Street was disappointed when Bezos and company said they expect Q4 revenue to only grow by 28%. This is like cutting Russel Wilson from the Seahawks roster because he only promised to win 2 of the next 4 super bowls! Amazon’s Operating cash flow jumped 56% and cloud revenue was up 29%.
The eagle project at the local Trinity Church continues this weekend. Salmon Bay Sand & Gravel delivers gravel today and tomorrow the scouts will descend on the pile of crushed rock like squirrels on a bag of tail mix. It should be a fun time.
The merger of our back office at KMS Financial into Securities America will be completed in a week or so. While we are eternally grateful for all the wonderful decades of support KMS has given us we are optimistic about this transition. It is important to note however there might be a change to the daily Blip due to a different compliance system at Securities America. We will do our best to continue this channel of client communications during the transition and hopefully be able to continue offering the Blip as a source of uplifting information and communication.