Stocks hit new all-time highs as the Trump rally continues full steam. The last time there was a rally like this after a presidential inauguration was when FDR took office. At the close The Dow gained 118 to 20,743 on slightly less volume. Energy, materials and retail sectors led the way and IBD has markets in rally mode plus the BTS indicators are still green.
Shares of Home Depot rose after the company posted positive earnings results and expressed optimism in US housing markets. Sales rose 6% while net income gained 23%. Both measures beat street estimates. The company also approved a $15 billion share buyback and upped its common stock dividend by 29%. The gurus were expecting 3.5% same store sales growth but actual results were 5.8%. Going forward CEO Craig Menear commented that a healthy housing market and robust consumer demand should continue to drive positive results. Home Depot is currently insulated from the effects of Amazon since it is hard to ship a 2X4 via the post.
Meanwhile Macy’s reported a mixed quarter as e-commerce trends continue to erode its customer base. Macy’s posted a 4% revenue decline and a 3% net income decline. The gurus were not impressed with the results and noted that Macy’s has more value as a potential real-estate play than as a retailer trying to compete with Amazon.
While on vacation at the Kandersteg scout camp in Switzerland, I was amazed to see a “Tesla test drive” event in the village. Tesla had two cars on display which were a model S and a model X. The locals and tourists were driving them around in the snow and playing with the gull wing doors. Tesla also had cars on display at various large European airports.