The Dow continued to move higher as energy stocks led the way thanks to higher oil prices after the Iran deal was nuked by President Trump. At the close the Dow gained 182 points on heavy volume to close at 24,542. The BTS indicators are in green and IBD continues to show that the rally, while still in place, is under pressure. Market sentiment appears to be improving.
Legislators in sunny California unanimously passed a law requiring that, starting in the year 2020, each new home must have solar panels on the roof. The law is the first of its kind in the nation and will be a huge boost to solar production in the state. Critics however note that it will add approx. $9,500 to the cost of the average home and hit middle income buyers more than the Oprah’s and Ellen’s of the world. According to the California Dept. of Housing and Community Development the state needs to build 180k homes per year to meet demand but currently only builds just over 80k. Builders, solar companies and environmental groups cheered the move while affordable housing advocates cringed and shares of California based utility companies sold off. Tesla will get a boost from this measure but I wonder what would happen if there is a shortage of solar panels or installers. Would that mean that a new home construction will be put on ice? It will be interesting to see how this all plays out.
Disney reported earnings last night and thanks to hit movies like Black Panther and the never ending Infinity Wars the results were above guru estimates. Revenue was up 9% and net profits were higher by 23%. Theme parks also did well as people flocked to Disney World, Disney Paris and Disney Hong Kong proving that people in China and France can stand in line just like Americans.