Stocks staged a nice upside reversal today after opening lower due to trade war issues with China. At the close the Dow was up 230 points to 24,264 in what was a 700 point swing from negative to positive. Trading volume was lighter however as big institutional buyers remain cautious. IBD and BTS indicators still favor cash although the bond market, which can be an early signal for economic trouble, remains in good shape.
Housing stocks shot higher after homebuilder Lennar reported earnings that outpaced estimates by a wide margin. CEO Stuart “Studs” Miller said the company outlook remains positive. Lennar reported a 28% revenue gain and a tiny 594% jump in net income. New home orders rose 30% in the quarter. Nice!
EEW, a German steel pipe manufacturer said it will build a permanent manufacturing plant in Massachusetts. The facility will make large diameter steel tubes. EEW has been in operation since 1936 and has operations in Europe and Korea but will now set foot in America. The plant is expected to create 500 jobs and will supply offshore wind platforms for Bay State Wind LLC.
Tesla has started to roll out its new solar panel roofing products in California at select homes near the Tesla Fremont car factory. Tesla is selecting homes based on ease of install as it wants to start slow and work out the bugs before expanding the product offering to more areas. Check out the article on our Faceplant page. This is cool.