Stocks fell yesterday and opened lower today before a late session rally sent markets into the black with a closing level for the Dow of 18,573 up 21 points on heavy trade. The reversal was a bullish sign.
In earnings reports, Lowe’s Home Improvement posted disappointing results causing the stock to sell off a bit. Revenue growth was decent at 5% while net profits only grew 9% which is a significant slowdown from prior levels. Lowe’s grew same store sales at a 2% clip versus expectations calling for 4% and the company cut its forward guidance sending the gurus to the local bars so they could drown their sorrows with a cold one.
Onetime tech darling Cisco is set to announce earnings after the bell and rumor has it that they will unveil a major restructuring which includes a 20% workforce reduction (14,000 employees) due to changes in technology. Shares were down as investors await tonight results.
The Federal Reserve released the minutes from its July 27th meeting and they showed policymakers were increasingly confident about the economic outlook but would wait "to accumulate more data" before hiking rates. The statement pointed to "moderate" economic gains, a strengthening labor market and "diminished" near-term risks to the economic outlook.
Things here in the office are busy. Cleo is in Idaho with family and tomorrow Bill will lead a group of young Boy Scouts into the North Cascades on a hiking extravaganza. Cleo will be checking the phones and both her and Bill will be back on Monday.