Your Weekly Blip 11/13/20

Your Weekly Blip 11/13/20

Stocks bounced back from yesterday’s selloff with the Dow closing higher by 399 points to 29,479. Not bad for Friday the 13th! Trading volume was mixed. The rotation into value stocks continues and we have been hearing guru chatter that markets, in anticipation of one or more vaccines coming to market, could move higher despite rising covid infections. For the week the Dow gained about 4.3%. Both IBS and BTS indicators are positive.
Disney reported better than expected earnings results yesterday sending shares higher. Revenue came in at $14.7 billion down 23% from this time last year but up 25% to the prior quarter. The House of Mouse lost 20 cents per share which was better than the 45 cent per share loss the gurus were expecting. Weakness in theme parks which saw a 61% revenue slide continued while signups for Disney Plus smashed estimates and was the bright spot for this quarter. Disney continues to forgo the dividend and announced it will shut down its ESPN esports division which will go dark in a few days. Looking forward, Disney sees 20 miles of bad road as it expects Disneyland and other theme parks to be closed at least through the end of the first quarter.
Cisco posted its Q3 numbers and while sales were off 9% and net income lower by 10% the stock was up about 7% because the results were better than expected. Cisco makes routers, switches and networking gear. The one bright spot in the report was an increase in security product sales. Cash flow was up 14% and the company has liquidity of $30 billion smackers.

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