Stocks continue to move higher as some head scratching gurus are calling this market “idiosyncratic” or in layman’s terms “this market, like our President, is different than anything we have seen in the past”. The bottom line is that all the turmoil in media, nature, politics, entertainment, sports etc, could actually be fueling the markets by creating change and disruption. While they may be idiosyncratic, the market is a forward indicator and right now, absent any unforeseen event, it seems content with the outlook. With that said the Dow hit another high gaining 42 points to 22,872 on lighter trading volume. IBD and BTS indicators continue to be positive..
Shares of Twentieth Century Fox fell 4% after the US Men’s soccer team missed the cut for the 2018 World Cup in Russia. The problem with US Men’s soccer in my opinion is that we focus on what we don’t have instead of what we do have. The US Men need an identity and not any more excuses like how other sports have the best athletes. It’s not true! As my old PE teacher Mr. Burkhalter (who thought soccer was for sissy’s) used to say “If you can’t kick the ball….kick the guy next to you”! US Men’s soccer needs a swift kick in the rear and to figure out an identity/attitude so they can get to the same level enjoyed by our mighty mighty US Women’s soccer team.
With all the natural disasters lately I asked a client in the construction business how things were going on a national scale. He said they are seeing shortages of equipment availability and delays on major equipment orders as FEMA is redirecting resources to areas of high need. He believes this will drive pricing higher and may cause some contractors to file force majeure claims as prices and schedules are impacted. The economy could get a boost from this demand equation as firms scramble to get labor and material needed to finish existing jobs while also taking on storm damage jobs.