Volatility in the market continues as the Dow gained over 200 points in early trading then gave it all back, and finally finished up 64 points to close at 25,444. Overall, the Dow made a little bit of a gain for the week and recovered some of its losses from the prior week.
The CEOs are fighting back! Today, Cleveland Cliffs CEO, Lourenco Goncalves, did his best Elon Musk impersonation as he went after Wall Street analysts during Cliffs earnings call. He was particularly upset with a Goldman analyst that had said they missed earnings (by $0.03) because the analyst “did bad math” and didn’t account for the convertible shares that the company has with, you guessed it, Goldman Sachs. In addition, he’s tired of the short sellers and the computer traders messing with their stock price, and he says he’s committed to making them pay by buying back shares if the share price gets pushed down. Cliffs reported good numbers by increasing revenue about 25% year over year, and even though earnings were a “miss” they still increased by nearly 100% from Q3 last year. In addition, they announced that they will reinstate a dividend which will pay almost 2%. The stock was down about 4% today.
The European economy faced another disappointing result as SAP delivered underwhelming numbers. Their cloud services are producing weak margins and now they are faced with competing against Microsoft’s new Spend App. This is an issue that investors are watching in Europe. The concern is that innovation and tech are not growing there. Their largest companies are manufacturers whereas the U.S., and even China, are growing with a lot more innovation and tech companies such as Amazon, Google, Tesla, Alibaba, and Tencent, to name a few.
Bill made a trip to Camp Korey today to help with the reconstruction of Diagon Alley. Last year, his neighbor assembled the Harry Potter scene in his driveway and helped raise about $45,000 for pancreatic cancer research. Now he is in the process of reconstructing it at Camp Korey, which helps families and kids deal with life-altering medical conditions. A couple days ago, KIRO did a news story about the project, which you can see on our facebook page. If you’d like to learn more about Camp Korey, you can check it out at www.campkorey.org.