Markets rallied today thanks to Federal Reserve Chairman Powell saying in a speech that he was monitoring the markets and global economies in relation to current interest rate policy. Many gurus felt the comments were a hint that the Federal Reserve could and would lower interest rates if conditions deteriorated. Large cap tech stocks rebounded after yesterday’s “ear slap” and led the way higher. At the close the Dow was up 512 points at 25,332. Trading volume was down slightly. After yesterday’s selloff in the tech space all major indexes might have put in a bottom and today’s action could be the first attempt at a rally.
Auto sales were reported for the month of May and while estimates are calling for an overall 2.5% decrease in sales in 2019 to 16.9 million units, the month of May came in better than expected. GM and Ford switched to quarterly sales figures so they did not report today but Toyota said auto sales were up 3.2% followed by a gain of 2.1% for Fiat Chrysler and 0.1% for Nissan. Honda Motor saw a 4.9% drop. Toyota said strong results were due to brisk sales of the Camry while Fiat said Dodge Ram truck sales were up a surprising 30% and the company even sold more trucks this past month than GM. Honda experienced a sales slump in the Accord. Tesla did not report sales but Cleantechnica is reporting that orders for the Model 3 were running close to 980 per day in Q2 up from about 790 per day in Q1 which is better by about 24%. An interesting factoid that recently came to light is both GM and Fiat are now paying Tesla cash in order to purchase pollution credits and meet fleet emission standards in several states.
We will be out of the office for the rest of the week but checking in for messages. KMS is hosting its annual conference starting tomorrow which will include an endless stream of meetings, continuing education and sessions on money laundering. I will have toothpicks with me to prop my eyelids open just in case things get a little boring.