Your Monday Market Blip 2/25/19

Your Monday Market Blip 2/25/19

Stocks bounced around like a Norwegian Cruise liner in a storm as the Dow opened lower then traded both sides of the fence before closing with a small gain of 14 points at 25,516. Trading volume was much lower on the day. IBD moved stocks to “rally under pressure” after Friday’s heavy volume selloff. Speaking of the Norwegian cruise liner, I wonder how much extra they charged passengers for the thrill ride of being lifted onto the rescue chopper. There might even have been a small jewelry store set up on the helicopter itself.
Shares of Boeing were higher after the CEO of Ethiopian Airlines voiced confidence in their relationship with Boeing. The company is hosting a meeting on Wednesday with over 200 pilots to talk about software upgrades on the 737 Max. The FAA has given its tentative blessing to the upgrade and other airlines have come out and expressed confidence in Boeing. Meanwhile the crash investigation continues.
Here at Greystone we watch several different investment gurus and try to ascertain an overall feeling about the economy, markets and where things might be headed. Currently we have two groups, one of which thinks the US economy is headed for a slowdown with a GDP growth rate falling to less than 2.5% for 2019 and the other tribe thinking the GDP growth rate will rise to 3%. Both groups have valid reasons. One thing both groups are united on is that economic stress in Europe and China will affect global growth but they disagree on how much that slowdown will affect the US. In the US, tax law changes are leveling the global playing field and preventing corporate inversions while disruption from Amazon is hitting retail and disruption from Tesla is hitting the auto industry of which Germany and Japan are big players. Germany is now in an automobile related funk due partly to slowing global sales but also due to losing customers to Tesla which is selling well in the US with cars also being shipped to eager buyers in Europe and Asia. Germany’s loss could be our gain thanks to Elon Musk which is why we here at Greystone side with the camp that feels the US economy will grow 3% this year. Please remember that we could be totally wrong in our assumptions.