Stocks continued yesterday’s policy risk selloff but while the Dow was lower the NASDAQ managed a reversal and closed up a bit. The Dow finished the day off 107 points at 19,874 on heavier trading volume. For the month of January the Dow gained about 0.4% and is holding steady after big gains in November (5.4%) and December (3.4%). IBD still has markets in rally mode.
UPS (United Parcel Service) reported 4th quarter numbers today and while revenue was up 5.5% and profits were higher by 4%, they both missed estimates and analysts expressed concern. Going forward, UPS sees growth but lowered its guidance a bit. What is interesting about this report is that online deliveries were up 13% this holiday season but in UPS’s case, more and more deliveries are going to consumers instead of businesses and since consumer deliveries are more expensive it means that UPS drivers are super busy but at a lower margin. Not to mention fighting porch pirates. Amazon, which is leading the trend of online shopping, reports earnings on Thursday.
Exxon Mobile reported a 2% increase in revenues and a 33% increase in net income but shares were lower because the company wrote off the value of its Rocky Mountain natural gas assets as part of the lingering effect of low oil and gas prices which bottomed in early 2016. The revenue rise was the first in over 2 years.
US WTI crude prices fell 1.7% to $52.81 as the prospects of higher US production offset OPEC cutbacks. Gold meanwhile traded up $17.10 an ounce to $1,213 after the US dollar weakened on policy concerns.