Earnings reports continue to flow in. GM reported weaker numbers, but McDonald’s did better than expected. The Dow gained 38 whole points to close at 26,592 on significantly higher trading volume. There was political chatter about a $2 trillion infrastructure plan plus US trade reps are in China today as work on the trade deal progresses. For the month of April, the Dow was up 2.5%.
Shares of GE were higher thanks to better than expected earnings. While revenue was down 2% and net income was down 24%, cash flow stabilized, operating profits tripled and the company reported strength in aviation, medical and oil field revenues which offset falling sales in power and renewable energy divisions. The company confirmed forward guidance and said industrial cash flows should be positive by 2020. Analysts were happy with the report.
Alphabet (aka Google) reported earnings last night that were disappointing or as a WSU grad would say “They Googed it”! Revenue came in below expectations while net income was above expectations. The gurus were confused by the revenue miss and the company was not clear as to why revenue was off target. One thought was that Amazon has been taking advertising dollars from Google. Whatever the reason shares were lower on the news but the company said it would be back on track next quarter. Revenue was up 17% while net income was higher by 9%.