The Dow closed up 115 points at 27,186. Trading volume was higher on the day. Stock traded flat until the Federal Reserve announced a quarter point interest rate cut then bounded higher. Today’s Fed rate cut was due to a slowing global economy, trade issues and a lack of inflationary pressures offsetting a strong consumer. BTS put out a recent blurb which indicated positive price movements in the HY asset class which is also positive for equities.
The first reading of US GDP growth for Q3 came in at 1.9% which was better than expected. Consumers showed strength as did home building which rose for the first time since 2017 with a 5.1% increase. Holding things back however was fixed business investment which fell 3%.
GE reported earnings that beat estimates sending shares higher. Revenue was flat for the quarter while net income was up 36%. The gurus were expecting 3 cents per share in earnings and GE delivered 15 cents per share. CEO Larry “Big” Culp sounded optimistic on the call saying they expect operations at the industrial segment, despite 737 Max issues and along with other segments will be “meaningfully better” in the next two years. The company lowered its debt load and continued to sell non-core assets while focusing on renewable energy, power and industrial segments.
Click on our Facebook page to see pictures of last night’s Troop 100 Fall Court of Honor. It was well attended with 50 scouts and loads of adults. It was a potluck affair and the scouts were awarded over 240 merit badges and there were 35 rank advancements. The most interesting award was for this one lunkhead who won the marksman award from our Andy’s cabin campout. He went 10 out of 10. It was interesting because his mom had told him not to shoot the 22s but since she was not there, he joined the competition and when he won, he was worried that he would be in trouble. When he got the award however the mom was happy and took a video of him getting the trophy while all the scouts cheered like sailors in a bar on payday.