Your Weekly Blip 4/5/21

Your Weekly Blip 4/5/21

Last week the Dow was up a net 80 points and was closed for trading on Good Friday. Today the markets made up for lost time thanks to Friday’s strong jobs report with the Dow finishing up 373 points to 33,527. Both IBD and BTS indicators remain positive as the economy continues to rebound.
The March labor report was very good as 916,000 jobs were created and the unemployment rate fell from 6.2% to 6%. Job growth in leisure, hospitality, education and construction was the main driver of the strong report. Despite the good report many industries and companies are reporting labor shortages and help wanted signs are up in lots of places. Even Delta Airlines today announced it was canceling 100 flights due to staffing shortages.
In other economic new the latest ISM Services index reading was a blowout hitting 63.7 in the single best reading since the index was begun back in 1997. The reading reflects a broad based pickup in activity and while this is great it also revealed supply chain issues like delivery delays and rising prices for a broad array of materials like lumber, oil, steel etc. The ISM reading, coupled with the strong labor report bodes well for the US economy as it heads into warmer weather, longer days and continued reopenings.
Shares of Tesla were back over $700 per share after the company reported Q1 deliveries topped estimates causing stock analysts to come in with upgrades. Model 3 and Model Y deliveries were 182,780 and FactSet consensus for total deliveries was 168,000. One reason behind the beat was a strong reception of the Model Y in China. Wedbush analyst Dan “Saint” Ives called the delivery numbers coming out of China “eye popping” and are now on pace to represent about 40% of total deliveries by next year.
The scout outing went well. 15 scouts took to the water and only one canoe was swamped during the entire time. Thank God it wasn’t my canoe! The upcoming Northern Tier trip is shaping up to be lots of fun.