Your Weekly Blip 8/21/20

Your Weekly Blip 8/21/20

Stocks finished the trading week on a high note with the Dow gaining 190 points to 27,930. Trading volume was higher. Apple is the largest stock in the Dow and it surged 5% today as investors pile in ahead of the month end 4-1 stock split. For the week the Dow was essentially flat with an 18 point net gain.
After 5 months of being closed, AMC Theaters opened about 100 of its total 600 venues in the US. The theater chain will be showing classic films for $5 bucks and has also cut prices for snacks and popcorn. Theaters will run at 30% capacity but CEO Adam “AA” Aron said they have “sold out” at that occupancy level. In its last earnings report AMC reported a 99% drop in revenue and a huge loss but as covid case trends show declines and things open slowly AMC and other theater chains are beginning to crawl back out of their shells.
John Deere reported better than expected Q3 earnings as farm equipment sales proved resilient. Deere came in with an 11% revenue decline and a drop in profits of 5% which bested gurus estimates. Catching the eye of investors the company updated its predictions for sales. Deere revised its construction and forestry equipment sales from negative 40% to negative 25% and sees agriculture and turf sales down only 10% for 2020. This surprise upward revision sent shares to a new high.
July existing home sales rose 24.7% making this the second straight month of gains with all regions across the US reporting double-digit gains. National Association of Realtors (NAR) economist Lawrence Yun said the housing market is well past the recovery stage with higher home sales than pre-pandemic levels. The positive housing news drop home builder and timber company stocks higher.

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