It was a mixed market as retail stocks fell while Tesla, semiconductor and chip stocks bolted higher. At the close however the Dow had fallen 102 points to close at 27,934. The tech heavy NASDAQ was up 20 points Trading volume spiked up. Both BTS and IBD continue to view markets in a positive light.
Several retailers are slated to report earnings this week. Leading the charge is Home Depot which reported better than expected numbers with a 4% revenue gain and a 1% increase in net income. Shares had traded at an all-time high but pulled back on the call after the company issued conservative forward guidance. Comp store sales were up 3.6% which was well below estimates calling for 4.6%. In store traffic was higher but margins were off a bit. Forward guidance was lowered because Home Depot’s online order and pickup service, called “click and collect” had not generated as much interest as expected.
Kohl’s reported flat revenue of $4.625 billion and net profits lower by 24% missing estimates and sending share down almost 17% as the company lowered its forward guidance. The report also sparked a selloff in other retailers like Macy’s and Nordstrom’s both of which report later this week.
Boeing received some good news at the Dubai Air Show when it booked an order for 50 737 Max jets from various carriers. This almost doubles its year to date orders. At the airshow so far Boeing has 65 orders which pales in comparison to Airbus having taken in orders for 180 aircraft. As of the end of October Airbus had 542 orders while Boeing had 45.