August 25, 2020
Ow, Dow
Exxon (NYSE: XOM), Raytheon (NYSE: RTX), and Pfizer (NYSE: PFE) are all getting the boot from the Dow Jones Industrial average in favor of more modern companies, Salesforce (NYSE: CRM), Amgen (NASDAQ: AMGN), and Honeywell (NYSE: HON).
Investors have no choice but to view this as a symptom of shifting times; the giants of old are making way for the new behemoths of commerce.
Still Friends?
Today, US and Chinese senior officials reaffirmed their joint commitment to the Phase One trade deal. Coming out of a decade that has had it’s latter half marred by poor US-China relations, any positive news in regards to foreign relations is always welcomed.
That being said, Beijing still needs to buy up $130 billion of US goods to meet its $200 billion quota agreed upon at the start of the year.
That makes the whole prospect sound a hell of a lot less promising.
Amazon Trucking Along.
Amazon closed at another all time high today.
The Tech giant keeps pushing forward reaching a price of $3357.40 earlier today and closed at $3346. The company, surged after record highs were hit by both the SP500 and DJI.
The bulls are still running… I guess..
Book Value vs Tangible Book Value
Ever wonder why companies are showing two different book values, one being called “tangible?”
When we talk about tangible book, we have everything that we see in book value minus intangible assets. Intangible assets include goodwill and intellectual property, like patents. This is closer to the estimated value of a company in the event of bankruptcy--in other words, what you can actually sell.
Sometimes, you’ll see tangible book and regular book at the same value; other times, tangible book will be significantly lower, as is the case with Louis Vuitton. After all, it’s incredibly difficult to value the true power of a brand like that.
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