Your Weekly Blip 6/26/20

Your Weekly Blip 6/26/20

Stocks continued to pull back thanks to a surge in covid-19 cases. The Dow fell 730 points to 25,015 on heavy trading volume which indicates that institutions were taking money off the table today. IBD still has markets in rally mode while BTS went to the sidelines earlier this week. For the week the Dow was down 2.8% or roughly 745 points.
Ford Motor Company rolled out the 2021 F150 pickup yesterday. The rig has more built in electronics and comes in both a regular gas engine and a hybrid version sporting a 700 mile range and 12,000 pounds of towing capacity. Ford plans on rolling out an electric version of the F150 at some point and has invested in truck EV startup Rivian which is planning on selling an electric truck next year.
The Feds released the results of the bank stress tests yesterday and the bottom line is that all big banks passed and are considered “strongly capitalized”. While this is good the Fed took additional steps and issued rules preventing banks from share buybacks through the third quarter. While cash dividends are allowed to stay in place the Fed is not giving banks permission to increase dividends at this point.
In economic news the commerce Department reported that consumer spending jumped 8.2% last month. This comes after a historic fall of 12.6% in April. Strong sales of cars and recreational goods led the way. Personal income in May fell 4.1% reflecting a decrease in gubment welfare payments but at this stage the numbers are fuzzy since the various stimulus measures are clouding the income picture. The savings rate fell from a record 32.2% in April to 23.2% in May. Since the lockdowns started bank deposits have grown by about $3 trillion smackers. That’s a lot of cabbage!
The Scout troop has not had any luck finding a summer camp so the plan is to shift gears and send several different groups out on hikes in both the Olympic and Cascade mountains. We are planning a crew hike, a 50 miler, an intermediate hike and a new scout hike for the younger lunkheads.

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