Your Weekly Blip 7/31/20

Your Weekly Blip 7/31/20

Stocks opened higher on earnings news but stalled stimulus talks and the prospect of extra gubment benefits falling away pushed equities lower. At the end of the day however both the Dow and the NASDAQ were higher with the Dow up 115 at 26,428. Trading volume surged into the close and finished well up. IBD has markets in confirmed uptrend while the good folks at BTS are now 70% high yield and 30% treasuries indicating they are mildly bullish but still have an eye on the door. For the month of July the Dow gained about 2.3% and is down about 7% for the year vs tech heavy NASDAQ which is now up 18%.
Earnings by the big tech firms were nothing short of stellar. Amazon reported a 40% revenue jump and an increase in profits of 97%. Faceplant posted an increase in both top and bottom lines of 11% and 98% respectively and Apple declared an increase in revenue of 11% and a net income gain of 18%. Apple also surprised and delighted investors when it announce a 4 for 1 stock split which is a rarity these days. Google rounded out the session by posting a 2% revenue drop and a decline in net income of 27% which was largely because ad revenue declined even thou it was offset by growth in the cloud business.
Seattle based travel firm Expedia reported earnings and shed some light on the travel business. The company reported an astounding 82% drop in revenue from $3.1 billion in Q2 last year to $566 million this year. Expedia lost $950 million smackers in the quarter. CEO Peter “sleepless nights” Kern said the company was shutting down small projects like ApartmentJet and Pillow to focus on long term corporate brand building and the eventual return of travel. He said travel bookings bottomed in April and began to recover in May and June but then flattened in July. They are expecting a bumpy recovery going forward. The company sits on $5.5 billion in cash which does not include a recently completed bond offering for $1.2 billion.
John and Cleo will be hard at work next week as Bill will be with a group of eagle scouts from Troop 100 hiking the 37 mile Ptarmigan Traverse. You can see pictures of the hike on YouTube. Just type in “Ptarmigan Traverse”. If all goes well the eagles won’t have to carry “the old buzzard” out.

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