The Dow went over the 25,000 mark for the first time closing up 152 points to 25,075. Trading volume was up and BTS indicators went back into high yield as bond prices continue to improve even in the face of higher interest rates. This means that both BTS and IBD indicators are positive. Investment guru David “Toasty” Tepper, owner of Appaloosa Capital in snow bound New York thinks the markets are at the same valuation levels seen at the start of 2017. He thinks strong earnings growth and tax reform could support a stronger economy and higher stock prices.
Traditional retailers like Sears, Macy’s and JC Penny reported better than expected sales over the holiday season but indications are that these strong results will not be enough to prevent more store closures in 2018. The gurus are saying Macy’s is about to announce another store consolidation effort and Sears today announced it will close 100 stores.
Meanwhile Amazon reported a record Christmas selling season with 4 million new prime members signing up for the service. The company also noted that prime members spent an average of $1,300 over the course of the year while prime members who have Echo devices in their homes spent an average of $1,700. Analysts are raising Amazon’s price target after a 5 day cloud computing conference in which the company demonstrated its growing strength in artificial intelligence or as we like to call it……fake intelligence