US markets continue to bounce around as Brexit turmoil pushed the euro and British sterling lower while currency traders sought safety in the US dollar and Japanese Yen. While US economic data continues to show solid fundamentals, it seems that markets are being affected by the Brexit drama just as markets were affected by the great Greek debt tragedy back in 2011. At the close the Dow gained 208 points to close at 25,289 on lighter volume.
Computer networking company Cisco reported better than expected earnings. The company posted an 8% revenue gain and a 23% increase in net income. The revenue gain market the 8th consecutive quarter of accelerating revenue growth. The company saw strength in subscription services and infrastructure platforms. It guided in line with estimates and the gurus expressed satisfaction with the results and upped their target prices sending shares higher.
Federal Reserve Chairman Jerome Powell noted in a speech that he is happy with the strength of the US economy while acknowledging that growth in global markets is slowing. Meanwhile, small business optimism readings were released today and the NFIB Small Business Optimism Index came in at 107.4 in October which marks another high and continues a two-year string of new highs. Juanita “Consuelo” Duggan, CEO of NFIB said small businesses are benefiting greatly from tax and regulatory cuts and surveys indicate they plan to continue hiring and adding to inventory.
The APEC economic summit is scheduled to be held in Papa New Guinea (PNG) later this month. 15,000 delegates from 21 nations will descend upon PNG. They will bring with them 500 US Marines and 1,500 Australian troops to bolster 2,000 local security forces. China will supply the fire trucks and busses and the RAAF will supply fighter jets, helicopters and escort ships. Since Port Moresby, PNG has few hotels and is marred by street violence, poverty and corruption, the delegates will be staying in three luxury cruise ships parked in the harbor. Let’s see……that’s 714 delegates per nation, 4,000 troops and all the exhaust belching logistics needed to support them. This does not sound like a very economical way to host an economic summit but hey, what do I know.