Stocks moved higher on heavy volume on positive news regarding continued China-US trade talks. At the close the Dow was up 443 points to 25,883. For the week the Dow gained roughly 3% of 770 points.
Shares of Deere were lower after the company reported quarterly results that were mixed. The company beat on top line revenues with a 15% revenue gain but missed on bottom line results with a 14% increase in profits. CEO Sam “Big Wheel” Allen said that while earnings were higher, they suffered from higher raw material costs, transportation costs and a slowdown in the ag sector due to tariff and trade policy disruption. Going forward the company expects global wheat demand to rise which will be good for its business.
Graphic chip company Nvidia posted earnings that were also mixed with a 24% decline in revenue and a 53% decline in profits. The gurus were expecting the slowdown and while Nvidia missed sales estimates it reported better than expected profits. The reason for the big drop was the demise of the crypto currency craze. Nvidia chips were very popular with crypto currency miners and with that whole thing in the toilet the demand for these chips has dried up like a cow patty in the dessert. Meanwhile however the company is optimistic on forward demand as artificial intelligence, autonomous driving and 5G telecom buildouts are showing promise.