Your Thursday Market Blip 11/14/19

Your Thursday Market Blip 11/14/19

Stocks ended the day mixed when an early selloff faded and the Dow recovered and closed down one lousy point at 27,781. Trading volume was lower.

Cisco Systems reported better than expected numbers, but shares fell after the company lowered its forward guidance by 3%. The California based network router company reported a 1% revenue increase and a gain in net profits of 12%. Sales to China were down 31% but overall product sales were flat while services were up over 3%. CEO Chuck “Marty” Robbins called it a solid quarter in a “challenging macro environment”.

Walmart reported better than expected profits as revenue was up 2% and net income gained 7%. Online sales jumped 41% but the company had to take a charge in its international division. Same store sales growth beat estimates with a 3.2% increase. Shares initially jumped to an all-time high but then settled down to close with a slight loss on the day.

Yesterday John and I attended a meeting with Brian “Mr. Sunshine” Wesbury, First Trust Chief Economist who is also a University of Montana grad and honorary member of the Westport Mafia. During the meeting Brian pointed out that M2 money supply growth has been accelerating for the past 6 months and is now over 9%. The implications here are that money is becoming more available and if this trend continues it reinforces US economic growth and minimizes the odds of a recession over the next 18 to 24 months. Mr. Sunshine views this one indicator with cautious optimism since we are in a disruptive time period where anything can happen.