Your Weekly Blip 8/7/20

Your Weekly Blip 8/7/20

Stocks traded in mixed fashion as tech and the NASDAQ finished down for the first time in 8 days, while the Dow five for five on up days this week. The Dow actually spent most of the day off 50 to 100 points, but closed the day strong to finish up 46 points and close the week at 27,433.
Much of the negativity around tech focused on a growing tech battle between the U.S. and China. Yesterday, President Trump signed an executive order that would ban Tik Tok and WeChat on September 15th. The order could mean that U.S. companies would not be allowed to advertise on the platform, and that it might be removed from Google’s and Apple’s app stores, which would prevent the updates to the app and render it virtually useless in the future. Other tech companies saw their shares trade off, as some think that companies like Apple, could now be a target to be banned in China.
On a positive note, the U.S. jobs report came back better than expected. The U.S. saw 1.8 million new jobs added, and unemployment came in at 10.2%. First Trust Economist and Honorary West Port Mafia member, Brian Wesbury, is seeing economic improvement however he believes it will be a couple years before unemployment returns to the pre-COVID level of less than 4%. He also sees inflation rising, because all the stimulus that the government is pumping into the system is outpacing the ability for businesses to produce given the current work environments. This is leading to greater consumption (demand) than production (supply), which in theory should lead to higher prices, especially in commodities.

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