Stocks continued to rebound during all the trade related volatility. The Dow was up 115 points on higher trading volume to close at 25,648. IBD is listing markets as “markets in correction”. Increased volatility is being driven by trade issues and increasing tensions in the Middle East as the US and European countries pulling non-essential personnel from Iraq over the rising tensions with Iran.
Chinese e-commerce giant Alibaba reported better than expected earnings. Both revenue and net income were up 41%. Alibaba is getting into cloud computing and saw good growth in this segment at 76%. The company is like Amazon but half the market cap. The other difference is that Alibaba’s sales network is more focused on the wholesale part of the business instead of retail sales.
Economic data out of China unexpectantly softened. Retail sales, industrial output and fixed asset investment for the month of April all fell short of analysts' forecasts. US economic data also came in lower than expected. Retail sales were down 0.2%. Brian Wesbury at First Trust however noted that if you take the past three months retail sales figures and smooth out the data the trend is improving. US industrial production however has rolled over and declined 0.5% in the latest reading making this the 3rd month in four that this figure has declined. The trade spat and slowdowns in global economies like Europe appear to be the culprit behind the drop. Positive signs in the manufacturing segment are being seen in an increase in energy related activity and a big jump in the New York region factory sentiment gauge.
Laser tag went well. The scouts had fun and are now getting ready for camporee this weekend at Camp Pigott over by Monroe.