Stocks continue to get whip sawed. The Dow opened the day up over 200 points but then the China US trade negotiations took a turn for the worst as President Trump mentioned a 10% tariff starting in September on anything currently not subject to the current 25% tariff. Markets rolled over when this tweet flew the coop and at the close the Dow was down 280 at 26,583. Trading volume was heavy in the morning during the rally but slowed a bit on the pullback indicating an upside bias with big institutional investors.
The month of July came to a close with a thud yesterday but even with the July 31st drop the Dow gained about 1% for the month and is up 15.2% for the year. The S&P 500 Index is up 18.9% YTD. Economic numbers continue to show a strong consumer and a manufacturing sector that is slowing but still growing.
One area of the economy on fire is solar. Several stocks in the group are reporting accelerating sales and net incomes. A company called Enphase in California reported sequential revenue growth of 18%, 43% and 77% over the past three quarters. Along with this the company is seeing triple digit profit increases and shares are screaming higher. Other stocks like Vivant Solar, Sunpower, Sunrun and SolarEdge are also breaking out and Industry reports state that after a lull in 2018, solar panel installation globally is expected to rise 18% this year.
Troop 100 is once again looking for a home as the church we were in for decades sold and the one we moved to initially wants us out so they can form their own youth group. Through it all the lunkheads have adapted well and yesterday we toured a large church in North Seattle with lots of space for storage and a gym that is looking to host a group like ours. Hopefully they will give us the thumbs up and we will have a new home from which to continue turning lunkheads into fine young men.