Stocks moved up 62 points to close at 24,768 on lighter trading volume. Other than trade talks with China all is quiet on the western front.
“Big Dan” Pinto, co-COO at JP Morgan Chase in an interview said the bank is not seeing the odds of a recession or a market pullback rise until 2020. He cited strong fundamentals especially in the energy space and a huge opportunity in China where deregulation of the financial industry will allow company’s like JP Morgan to move in and set up shop.
Home Depot reported earnings that beat the guru estimates but the stock fell thanks in large part to a harsh winter and a cold spring which caused Home Depot to miss revenue guidance. Customer transactions were down 1.6% while the size of each transaction was up about 5.9%. Revenue in the quarter was up 5% while net income increased 25%. Going forward the company maintained its guidance and expects warmer weather and a strong housing market to boost sales and revenue. Home Depot is also continuing its buildout of e-commerce and is well ahead of competitor Lowes on this score.
Macy’s Department Store reported earnings and they were much better than expected. CEO Jeff “the Genius” Gennette took the reins last year at about his time and has infused the company with an exciting format which appears to be paying off. Revenue gained 4% in the quarter and net income was up 250% sending shares higher and boosting the retail sector.