Your Weekly Market Blip 5/29/20

Your Weekly Market Blip 5/29/20

Stocks finished the week on mixed note as tensions between the US and China is the news of the day. At the close the Dow was down 17 points on heavier trading volume at 25,383 while the NASDAQ finished up 120 points at 9,489 on lighter volume. According to IBD the stock market uptrend remains solid after hitting lows more than two months ago on March 23. The major stock indexes confirmed a new uptrend on April 2. For the Week the Dow was up 3.6% or about 890 points.
The US savings rate hit a historic high of 33% in April according to the US Bureau of Economic Analysis. Incomes shot up 10% while spending fell 13.6%. All of these numbers however reflect onetime events like lockdowns and federal stimulus. Bank of America CEO Brian Moynihan said balances on lower end checking and savings accounts rose 40% due to people socking away stimulus funds and cutting expenses. Some economists are looking at these figures and wondering if and when this pent up pile of cash will work its way into the economy.
Costco reported earnings yesterday with a 7% revenue rise and a 25% increase in net profits. Top line results were better than expected while the bottom line profit matched estimates. Same store sales in the US rose 5.9% while international comp store sales rose 6.2%.
Nordstrom’s reported earnings as well showing the great divide between it and Costco. Nordstrom’s posted a 38% drop in sales and a loss of $2.23 per share versus a net profit of .23 cents per share this time last year. Both top and bottom line numbers missed estimates. Digital sales at Nordstrom’s accounted for 54% of total sales up from 31% a year ago. Store openings have begun with 40% of its locations now open.

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