Markets were up on the heels of strong earnings reports from Lowes and Target. The economy continues to show strength, and even the July Fed minutes showed that the bankers were not so concerned about the U.S. as their concern was more about foreign economies. President Trump keeps pounding the table for lower interest rates in order to boost the market and the economy, but the data just doesn’t support it. In reality, policies put in place by the Trump administration, such as corporate tax cuts and deregulation, have helped to create strength in the economy, and most likely any further boost to the economy will come with a trade deal in China and improved economics in Europe. Even when the market saw its 800 point decline, there was still a lot of confidence in investment grade corporate debt as the price on those bonds hardly moved. Additionally, two of the most valuable assets in the world are energy and technology data, and U.S. is certainly a leader in tech data and becoming the leader in energy as well. The Dow finished up 240 points and closed at 26,202.
Target was, well…right on Target, with their earnings as they reported better than expected revenues, profits, and profit margins. The stock shot up more than 20% as investors were also highly encouraged by their increased online sales as well as their ability to reduce costs of online fulfillment. A couple years ago, Target took the strategy of building more store locations when everybody was closing stores, but they did this as a plan to use these stores as their fulfillment warehouses and the strategy has paid off. Lowes also reported strong earnings and their stock was up about 10%. The story of the strong consumer continues.
Scouts visited a castle in Thun, Switzerland. While they did get a chance to play with the scales of justice, nobody was sent to the dungeon. See the latest photos on the Greystone Faceplant page!