Markets closed after a wild trading session which saw positive and negative swings as tax reform details emerged and Jerome Powell was nominated as the next Fed Chair. At the close the Dow posted another record high gaining 23 points to 23,539 on heavy trade.
Apple Computer blew away earnings estimates proving many wrong (me included) with current results and posting positive forward guidance to boot. The company recorded a 12% gain in revenue which is the fastest number in at least two years. Net profits came in with a 24% gain. The iPhone “X marks the spot” appears to be a big hit even with the high price tag which many money managers had feared would hurt sales. Shares hit a new high gaining a couple percentage points on the day and about 6% for the week.
Starbucks reported disappointing Q3 results with a slight decline in revenue and a 10% increase in the bottom line. Growth in China was good but domestic sales were lackluster as the company continues to struggle with traffic flows. Starbucks took a bath on its purchase of Teavana and lowered its long term growth outlook. Shares were higher on the news after an initial selloff.
The October jobs report showed a gain of 261,000 new jobs with the bulk of the gains coming in the leisure and hospitality sector (106,000) while manufacturing and construction jobs gained about 35,000, business/professional services added 50k jobs and the gubment added 9k jobs. The unemployment rate fell to 4.1%.
There is a scout hike this weekend. It is to Thunder Creek near Ross Lake and the weather looks rough.