Your Weekly Blip 7/17/20

Your Weekly Blip 7/17/20

Stocks finished the trading week on a mixed note as the Dow fell while the NASDAQ rose. At the close the Dow lost 62 at 26,671 on heavier trading volume. IBD still lists markets in rally mode while BTS continues to show a defensive bent. For the week the Dow had a net gain of 600 points or 2.2%.
Arkansas based trucking firm JB Hunt reported better than expected earnings for Q2 sending shares to an all-time high. Revenue was lower by 5% and net income fell 17%. The company experienced a 2% drop in Intermodal and 5% fewer last mile stops but benefited from lower driver turnover, fuel and insurance costs along with significantly reduced travel and entertainment costs for the bigwigs working the main office. Going forward the company said volume picked up in the second half of the quarter and expect that trend to continue. Gurus liked the report and responded by raising target prices for the stock.
Chris “Real” Low, economist at FHN reported on the biggest banks having set aside nearly $28 billion in loan loss reserves during the quarter. Banks were conservative in loan loss reserves for Q1 but the Federal Reserve guided them to be more pessimistic this last quarter thus we had a higher loss reserve. Most bank gurus feel that April marked the bottom of the recession and May and June were months of expansion which should continue in the months ahead. Defaults are always a lagging indicator since economic stress peaks after the recession is over. Some industries however have been hit so hard it will be years before they recover and this could weigh on banks that have exposure to these areas.
Good news on the Scouting front. The church where we used to hold meetings is under new ownership and with the remodel of the old church almost done they have signaled that we can keep our bus there with the possibility of hosting troop meetings again in the fall. Any church that puts up with 40 screaming lunkheads every Thursday night is definitely expressing the saintly quality of patience.

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