Stocks opened the trading week with a mild move higher. The Dow made its 9th straight gain and closed up 25 points on weak trading volume at 22,118. The NASDAQ was higher on light trade as well and did appear to move more than the Dow breaking a two week trend of letting the Dow be the leader.
S&P 500 earnings reporting so far has been good. With 84% of the outfits that comprise the index having reported, 72% have beaten the mean EPS estimate and 70% have bested the mean sales estimate. The blended earnings growth rate at this stage of the game is 10.1% which compares favorably with estimates in June wherein the gurus were projecting an overall 6.4% earnings growth rate. While we still have several companies to report the results so far are well above early estimates. The forward PE ratio is 17.7% which is above the 5 year average of 15.4%.
I will only be in the office through Wednesday but then for the next week and a half will be in New Mexico at the famous scout camp known as “Philmont Ranch”. Our troop is taking 17 scouts to hike the wilds of New Mexico and hopefully not feed the bears. I am thinking we will run into Chris Pratt on a movie shoot while we are there. Some of the smarter boys will be doing a 30 miler while the idiots like me will take on a 50 mile hike. John and Cleo will be in the office while I am gone.