Stocks whipsawed today like two old time lumberjacks on a double buck as news about trade, impeachment and the UK vote hit the wires. At the close the Dow was up 3 points at 28,135. Trading volume was lower than dirt. For the week, the Dow is up 0.5% and for the year is up about 21%. Both IBD and Isaac’s crew over at BTS continue to see bullish yet cautious signals on US markets. With all the disruption from this week’s events the markets might pause as investors figure out the meaning of it all.
Costco reported stellar earnings with a 6% revenue rise and a 7% increase in net income. Profit results were generally better than expected as margins were up and same store sales growth came in at 5%. Revenue figures missed guru estimates as gasoline prices were low. Rotisserie chickens continue to fly off the shelf.
The phase one China trade deal was signed last night but the details have not been fully released. Chinese officials said the 15% additional tariff scheduled to take effect on Sunday was cancelled. President Trump tweeted the 25% tariffs will stay in place and that negotiations for phase two will begin immediately.
The UK voted emphatically to elect Boris “BoJo” Johnson as PM by the winningest margin in British politics since 1987. The vote increases the odds of a Brexit on January 31, 2020 and while many feel this is bad for Britain some feel it is worse for the EU since Brexit could leave a $10 billion hole in the EU Budget which certainly will not be made up for by squeezing Greece or even Germany for that matter which is grappling with a stagnant economy as its auto industry struggles to compete against Tesla. After the vote the British pound shot up as did the FTSE stock index.