Your Weekly Blip 8/28/20

Your Weekly Blip 8/28/20

Stocks closed at record levels with the Dow gaining 161 at 28,653. Trading volume was off a bit but IBD continues to list markets in rally mode plus BTS has a positive bias as well. One internal market indicator is the Dow Transportation Index which has now been up 4 weeks in a row and is confirming the current rally. For the week the Dow gained 2.6% or roughly 774 points.
Shares of both Walmart and Microsoft were higher after it was learned that these two companies teamed up to bid for the assets of popular video streaming service TikTok. Gurus are expecting TikTok to be valued at $30 billion and bidders lining up besides the dynamic duo of Microsoft/Walmart include Oracle, Google and some private equity firms. TikTok is owned by the Chinese company ByteDance which is being forced to sell because of its ties to the CCP. TikTok CEO yesterday announced his resignation plus TikTok is suing the Trump administration but that might go away pending the asset sale.
The latest Boeing news includes word the European Union Aviation Safety Agency will send test pilots to Canada to conduct 737 Max test flights from Vancouver during the week of Sept 7th. Canada completed its test flights this week. Meanwhile Boeing found two manufacturing issues for eight of its 787 Dreamliner’s. It contacted the FAA and the operators of these particular aircraft to remove them from service until repairs can be made.
In economic news the Commerce Dept reported a rise in personal income of 0.4% after two months of declines. As more businesses reopened wages moved up and offset a reduction in gubment benefits. Wages gained 2.2% in June and 1.3% in July. Spending rose 1.9% in July after climbing 6.2% in June. These numbers were better than expected.

Comments are closed.