Your Tuesday Blip 6/16/20

Your Tuesday Blip 6/16/20

Stocks jumped on strong retail sales figures and word that the White House along with Federal agencies like the US Department of Transportation are working on a trillion dollar infrastructure plan to rebuild bridges, roads, tunnels, expanded broadband and transit.
The Dow finished the day up 526 points at 26,289. Trading volume was up. Stocks continue to show an upward bias and IBD has markets in confirmed rally while BTS is more cautious with a 60% market weighting and 40% in long treasury bonds.
The gurus had expected May retail sales to increase 8.4% but the actual figure jumped by 17.7%. This compares with a 14.7% decline in April. The biggest jump, or shall I say…. “bounce back” was in clothing stores followed by furniture, sporting goods and electronics. Grocery stores only saw an increase of 1.3% but they did not see any falloff during the lockdown either. The results today show that May’s overall retail sales bounced back faster and stronger than expected
Miami based homebuilder Lennar posted earnings yesterday and the results were better than expected. Revenue was lower by 5% but net profits grew 27%. CEO Stuart “Stewie” Miller on the call talked about how the company was benefiting from the trend of customers moving out of rental apartments and densely populated areas like Seattle’s Capitol Hill “CHOP” area to peaceful homes in suburban areas where lawn mowers hum and birds sing. Low interest rates and inventory levels also contributed to Lennar delivering 12,672 homes in the quarter which was surprisingly consistent with this same period a year ago. The company took new orders for over 13k homes vs consensus calling for 11k new orders.

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