Your Weekly Market Blip 4/24/20

Your Weekly Market Blip 4/24/20

The latest stimulus bill was passed by the House and signed by President Trump sending another tranche of cash to small businesses, hospitals and farmers. The Dow ended the day up 256 at 23,771 on lighter trading volume. For the week the Dow was down about 1.8%.
Investor’s Business Daily or IBD, noted that since the Dow Jones hit a low of 18,213 on March 23rd it has showed bullish action and is up approx. 30% since then. With all the negative news regarding the virus, shut downs and oil going negative many are asking how the markets can possibly move higher. IBD notes that part of the reason for the recent rally is seen in growing evidence that institutional investors are beginning to put some capital back to work. There is now a 3 week trend of higher volume up days and lower volume down days. Where it goes from here is unknown and the markets face many critical tests in the days ahead plus there is ample worry over another leg down but history shows that it pays to keep tabs on what institutional investors do.
Oil continues to rebound with WTI adding another 3% to finish at $17,15 per barrel. Continental Resources shut all its wells in the North Dakota Bakken shale formation and other oil players are doing the same to include countries like Kuwait which announce cuts as well. Natural gas pipeline stocks crept higher today as demand in this space is proving more resilient than it is for oil.
Verizon reported better than expected profits with a 9% increase in the bottom line while revenues were off 2%. The company added $228 million to its bad debt reserve and earlier this year increased its capex from $17 billion to $18 billion. The business segment added phones while consumer and media saw declines. The company has $7 billion in cash on hand and revised its forward guidance from plus 2% to negative 2%. Overall it was not a bad report.

Comments are closed.