Stocks began the day up but then faded into the close and finished down 14 points at 26,143 on lower volume. The markets seem to be marking time as we get ready to report earnings. The gurus are thinking that earnings will be lower for the first time in several quarters but after that they are calling for a rebound as the year progresses. IDB has the markets in “rally” mode and BTS is long high yield meaning that they are optimistic. People we speak with generally appear to be a bit nervous which is most likely due to all the political headlines but skepticism can be good for the market and is a welcome sign. Shares of Tesla were lower after a report from an Asian newspaper which stated that Panasonic and Tesla were putting Gigafactory 1 expansion plans on hold due to slowing demand. Tesla reports earnings on the 24th so I guess we will get a better view of the situation at that time.
Costco shares declined after the company posted its March sales figures. Same store sales were up 5.7% while ecommerce sales jumped 20.6%. The March retail company wide sales were $13.87 billion for an increase of 7.4% from last year. The gurus were not happy with the figures however although some are predicting the company might be setting up to pay another special dividend.
Boeing stock rose a bit after the company said that despite the production slowdown in the near term it was still planning on upping 737 Max production to 57 planes per month. Later this year Boeing might also be unveiling a replacement for the 757 which it stopped making over 10 years ago. Airlines like Icelandic Air are hoping for a replacement since all they fly are 757’s.