Stocks hit record highs again today with the Dow cresting the 22,000 mark for the first time ever! At the end of the day the Dow finished at 22,016 up 52 points. Trading volume was mixed. My feeling is that markets have been strong and with earnings winding down we might get a pause in the rally but then again I could be wrong.
This fruit company in California called “Apple” reported earnings yesterday that were much better than expected. Q2 for Apple was expected to be a “throw away” event as the gurus were expecting slow sales of phones in anticipation of the IPhone 8 release sometime in September. Despite this concern however Apple confounded with wisdom of the gurus and sold 41 million phones while reducing its inventory significantly. Revenue for the quarter was up 7% while net income was higher by 18%. Apple’s cash pile is now over $260 billion and CEO Tim Cook is considering buying Greece with some of the proceeds. Just kidding! Sales of the IPhone 7 were strong in Asia, Latin America and the Middle East. Apple shares hit an all-time high and the gurus are predicting more upside for the company saying it could hit a trillion dollar market cap within the next year or so. Now that’s a “big apple”!
With a successful Q2 earnings season mostly over, the markets could look to take a breather and begin to focus on other issues like the Seahawks, the economy and politics. This could lead to a retrenchment in equities but the underlying economic numbers continue to be encouraging and according to the experts at places like BTS, any pullbacks right now are buying opportunities. Personal incomes are up at a 4.4% annualized rate in the first six months of the year compared with a 2.9% pace for last year. The US consumer is healthy and the financial obligations ratio is hovering near the lowest levels over the past 35 years.
PS Why did the golfer wear two pair of pants? (He might get a hole in one) haha!