We’re back baby!
Stocks began the new year on a positive note with the Dow rising 246 points on heavy trading to close at 36,585. Banks, energy and material stocks led the way higher while chip companies and Tesla pushed tech stocks up as well. IBD has markets back in rally mode.
2021 was a good year for stocks as the Dow gained 18.9% while the S&P 500 was up 27%. The best performing sectors were semiconductors and transportation while the worst sectors were medical related stocks and airlines. Market prognosticators like Brian Wesbury at First Trust think markets could have a good year however Bank of America says the S&P 500 will finish lower by a couple of percentage points given the prospects of inflation and rising interest rates. If I could just figure out which guru is correct then I too can be a guru!
The Economy and Earnings
Tesla posted its year end vehicle deliveries over the weekend and the numbers blew away estimates by delivering 308,600 cars vs guestimates calling for 236k. Tesla’s October deliveries were up about 70% from the same quarter last year and 87% on a year over year basis. Tesla’s production in China ramped up more than expected as Tesla uses its factory in Shanghai to ship cars to Europe and other Asian countries. New factories in Austin, TX and Berlin, Germany will start production this year and Wall Street is now forecasting deliveries to increase 50% despite shortages of chips and other supply chain issues. Shares of Tesla spiked 10% on the news.
The EV space in the US continues to grow as 13 US battery plants are now in various stages of planning or construction. The plants are being built by Ford, GM, LG Energy, Stellantis, Toyota and others and these are expected to open starting this year and each year through 2025.
Items of Interest
The lunkheads are scheduling a snow hike in the Snoqualmie pass area for late January. I might tag along but it is weather dependent. Last year scouting had its ups and downs. Troop 100 continues to maintain a roster of 65 scouts and 2021 saw more trips and hikes than the prior year. We are still not back to normal but progress is being made and the scouts are itching to get out more as the year progresses.