After a long Memorial Holiday weekend the Dow “rested” today and closed the day off 50 points to 21,029. Both the S&P 500 and the NASDAQ were lower as well snapping a 7 session winning streak. Trading volume was heavier than Friday last week but that is not saying much since Friday’s volume was lower than whale poop.
Economic news in the US continues to look good. The US consumer is in a decent spot as incomes are rising at a 4.2% annual pace so far this year which compares favorably with the 2016 pace of 3.1%. Meanwhile the Case-Shiller home price index increased 0.3% in March and is up 5.8% from a year ago. Seattle and Portland were price gain leaders while New York City and Washington DC (of all places!) posted the slowest gains.
As the month of May comes to a close first quarter corporate earnings have been reported and the results were very good. According to Zacks Research, the growth pace for Q1 was well above recent trends as earnings from S&P500 companies were up 13.6% from the same period last year. Revenues were higher by 7.2% and over 72% of reporting companies beat earnings estimates while 65% did better than expected on the revenue side ledger. The gurus were happy with the results and if these trends hold true it could signal higher prices for markets in the coming months.
The scouts did well at the GAR cemetery on Monday. They read the Gettysburg address and the story of how General Logan first proposed a Memorial Day back in 1868 after his wife told him about how she noticed all the Civil War grave sites had flowers on them placed there by locals. This is a good thing for the boys to take part of and learn the history behind the sacrifices that others have made for our benefit.