Stocks hit another high even as Facebook did a “Faceplant”. At the close the Dow was up 228 at 25,803 on heavy trade. For the week the Dow gained roughly 490 points or 1.9%. Markets will be closed on Monday the 15th as we remember the life work of Dr. Martin Luther King.
Wells Fargo and JP Morgan Chase reported earnings today and the numbers were good. Wells had a 6% revenue rise and net profits were up 82%. The fireworks however were at JP Morgan which, while it posted an 8% revenue increase missed bottom line results after a large South African retailer that had accounts and loans with JP notified regulators that its books were cooked. JP took a $143 million dollar loss related to the situation thus leading to the bottom line misery.
Core inflation has been showing a pattern of acceleration. In 2015 the inflation rate was 0.2%, in 2016 it moved up to 1.7% and today it was reported that in 2017 the inflation rate was 2.3% after a 0.1% drop in December. The gurus are expecting this trend to continue. Meanwhile US WTI crude oil was up another point to $64.40 per barrel. Global economic growth is driving the move higher as well as pushing up prices for other base materials like steel, ore, copper and toilet paper!
Wenatchee Washington is becoming “bitcoin central” as cheap electricity is attracting bitcoin miners by the bushel. Miners are setting up operations and some are producing 5 to 7 coins per day ($67,500 to $94,500) which is not bad when electric rates are .02 cents per kilowatt hour. See our Facebook page for a video about it here. In the video you can see barely see Ohme Gardens in the background which I consider one of the most beautiful spots in the entire state of Washington. Truly an amazing story. Check out the link from our Facebook page.