Stocks opened the day higher but finished mixed as the Dow lost another 100 points to 25,286. Trading volume was higher. The NASDAQ managed to close slightly positive thanks to a rally in chip stocks. IBD has markets under pressure again after a brief rally attempt.
Amazon announced its HQ2 locations and they are Long Island City, NY and Crystal City, Virginia which is just down the road from the Pentagon. The company plans to go with 4 million square feet at each location plus another 4 million square feet in Seattle. A couple of years ago while on a scout hike, one of the dad’s, who works at Amazon, mentioned that the company plans to have over a million system wide employees within 4 or 5 years. At the time he made that comment Amazon had 250k workers and today they have roughly 600k workers. The additions of these new locations will be a step toward that goal of a million plus carbon units swilling coffee and writing code. Amazon also announced plans for a logistics hub in Nashville that will have 5,000 workers. The Seattle Times noted that Amazon currently has 8,200 full time job openings in Seattle alone and over the past few years has accounted for 30% of all new jobs in Seattle.
Home Depot reported solid sales and profit numbers that beat estimates. Management noted that the US economy is strong despite a recent softening in housing in certain markets. Revenue was up 5% and net income gained 36%. CNBC’s Jim Cramer liked the news, but Wall Street reacted negatively when CEO Craig “Plywood” Menear softened his Q4 growth guidance because the sales boost from last year’s Hurricane will make this year’s Q4 growth rate look mild.
Oil demand is still expected to surpass more than 100 million barrels per day next year, but forecasters have steadily revised their outlook for demand growth lower. Even as the demand outlook weakens, OPEC and Russia have been hiking output and supplies are surging from the United States. WTI crude oil closed the day off 7.7% to $55.27 per barrel. Look for prices at the pump to dump.