The NASDAQ is looking like a SpaceX rocket as it hit another new high today. Meanwhile the Dow fell hard dropping two whole points or 0.01% to finish the day at 20,979. Trading volume was mixed and the NASDAQ is being led higher by Google, Faceplant, Amazon and Netflix.
Home Depot (“Home Despot” as some call it) reported robust Q1 earnings as both top and bottom line results beat the guru gestimates. Revenue was up 5% and net income gained 16% as US comp. store sales in the US gained 6% versus estimates calling for a 4.3% increase. Big ticket item sales (above $900) were higher by 15.9% and CEO/Chairman of the “Board” Craig “Nail Gun” Menear said “We were pleased with our results as they reflected broad-based growth across our interconnected platform and all geographies” Home Depot’s results reflect strength in US housing sector even though I am not sure what an “interconnected platform” is. Could it be a couple of boards nailed together? Shares of Home Depot rose sharply and hit an all-time high thanks in part to positive forward guidance.
Economic data continues to be encouraging. Industrial production exploded to the upside in April, posting the largest one-month jump since February 2014. Production rose 1.0% in April and is now up 2.1% versus a year ago.
Housing starts however came in lower than expected falling 2.6%. While this seems like a head scratcher the internal numbers on housing show a shift from multi-unit starts to single family starts which rose 0.4% in the report and are now up 8.9% from a year ago. The difference between a multi-unit start and single family start is the later adds twice as much to GDP per start.