Stocks closed lower today but the intraday action was encouraging as the Dow overcame an early 114 point loss to rally and close the day off 23 points to 20,919. Trading volume was higher. The key event today was weak earnings from Macy’s which sparked a selloff in the retail space.
In earnings reports, Disney posted results that showed a 10% earnings increase and a 3% revenue rise. The results missed expectations however thanks in part to struggles at ESPN (some call it “BSPN”) offsetting decent performance at resorts and parks. Snapchat was blasted after reporting its first ever earnings. The company’s revenue growth rate fell and it posted a big loss. Stock analysts and guys like Jim Cramer were upset with Snapchat CEO Evan “Smiegel” Spiegel cracking jokes on the call. The gurus are saying Evan needs to “humble up”. After the report investors crushed the shares sending them down about 20% to an all-time low since the IPO.
Oil prices rallied and even though they are off 11% YTD the price of WTI crude gained 1% and closed the day back over $47 a barrel. The reason for the jump was a bigger than expected drop in US crude inventories.
Elon Musk announced that Tesla was now taking orders for its solar shingle. The pricing came in lower than expected and the move is a big step toward Tesla linking solar power with transportation. It is the equivalent to Ford or GM offering its customers their own mini “in home” oil rig and refinery. Each kit comes with greasy overalls, a hard hat and a book of “colorful metaphors” to use while working your drill rig.