Stocks rallied, and the Dow closed up 431 points on heavy trading volume to 24,874. Consumer stocks and retailers led the way and Apple unveiled new products as we head into the holiday season. IBD and BTS indicators are still negative. IBD has markets in correction mode and BTS is in cash. Earnings reports continue to come off the line like Tesla Model 3’s at the Fremont factory. Facebook reports earnings after the close. Boeing rebounded from yesterdays selloff.
General Electric (GE) reported earnings and both top and bottom line results missed estimates as the company took a huge non-cash charge in its latest attempt to stem the bleeding, reorganize and chart a course forward. Revenue was down 4% and net income fell 62%. The company slashed its dividend to a penny per share per quarter which will save it about $3.9 billion per year. The company will also change its ticker symbol from “GE” to “EG” which stands for “Equity Gone”. Just kidding! Shares did however fall and hit a level not seen since the 08/09 crisis. I wonder if Warren Buffett will buy them back at this level?
While disruption is hitting the market, the economy and with political discourse on the rise heading into the elections, the Conference Board said its latest consumer confidence index increased to 137.9 in October. This is the highest reading since September 2000. The survey noted that consumers do not foresee a slowdown in the economy and that expectations for a strong pace of growth into 2019 pushed the index up and above expectations.