Your Tuesday Market Blip 11/14/17

Your Tuesday Market Blip 11/14/17

Stocks pulled back today on heavy trade as the Dow closed off 30 points to 23,409. While some stocks were up others like GE continue to be beaten like rented mules on a wagon drive. Market volatility is on the rise as debate over tax reform swings into high gear. Goldman Sachs is now saying the odds of tax reform passing in early 2018 is 85% up from 60% a few weeks ago. The BTS indicator has now gone to cash while IBD is still positive on the markets. These indicators are confirming that more volatility might be in the cards.

With over 90% of companies in the S&P 500 Index having reported Q3 earnings, the results are good. Prior to the earnings season gurus had expected profits to grow by 3% but so far the actual figure is closer to 6%. Factset reported that 74% of companies had positive earnings suprises while 66% had positive sales suprises. Factset noted that of the companies which discussed proposed tax changes during their earnings calls, 40% expressed optimism while 60% expressed uncertainty over the final tax legislation’s details.

Home Depot nailed its earnings report today beating street estimates. Revenue was up by 8% and net profits grew 15%. The company raised its forward guidance and CEO Craig “Hammering Man” Menear said that core business remains solid even though the quarter was marked by a boost from unprecedented number of natural disasters to include earthquakes in Mexico, fires in California and hurricanes in Texas and PR. Shares climbed to a new high on the news.