Stocks recovered from yesterday’s selloff and shot higher as odds for the passage of the tax bill improved. At the close the Dow was up 143 points to 24,651. Trading volume was well up thanks to options expirations. For the week the Dow was up 1.3% or roughly 319 points. IBD still has markets in rally mode but BTS is in cash as higher interest rates are weighing on corporate bond pricing.
Costco reported Q1 numbers yesterday and the street collectively went …….”Wow”. Revenue, net income and comp sales all came in well above estimates. Online sales, which is a service Costco has been investing in, came in with a whopping 43.5% increase. Customer complaints were up as well simply because Costco was overwhelmed by the response to its online initiative and lacked staffing to meet demand. Revenue came in at $31.8 billion up 13% and net income was $1.36 billion up 21%. Shares hit an all-time high.
Bloomberg posted an interesting article about China, bitcoin and coal. Read it here on our Facebook page. What I find interesting is that people in the US are speculating how bitcoin is a bubble waiting to burst. If this is true then China could get whacked since they have 58% of the bitcoin mining computer pools versus 16% for the US. This article seems to point out that China is huge in the bitcoin market. For years now, rich Chinese have looked for ways to get money out of the country. These efforts have been hampered by government capital controls which aim to stem the outflow of wealth. Bitcoin’s rise might be the latest chapter in that saga as those with money look to use bitcoin as a way to diversify out of the yuan.
As of yesterday the Boy Scouts only have 14 trees left to sell and they are all 4 feet tall. It was the earliest we have sold out that I can remember. Thanks to all the lunkheads and those who supported the troop by buying a Christmas tree.