Stocks closed out the week with a selloff. Trading volume was big thanks to options expirations. The Dow closed the day down 19 at 20,916. For the week the Dow gained about 24 points net. The big news of the week was the Fed rate hike on Wednesday.
The latest University of Michigan consumer sentiment readings rose from 96.3 to 97.6 which is the highest reading since 2004. Going forward the reading is off slightly but remains resilient. Within the report however data points revealed tremendous partisanship among consumers as the expectations of Democrats sits at only 55.3 indicating a recession while Republican expectations are up to 122.4 indicating optimism.
Investor’s Business Daily reported that for the second day in a row a major US steel company raised its forward guidance by a significant amount. The company in question is Steel Dynamics and they put out a statement saying that “current and anticipated macroeconomic and market conditions are in place to benefit the domestic steel industry in the coming year,” The company also stated that the improved forward guidance is based on strength in the construction and automotive sectors.
It has been a busy “animal crackers” week for IPOs. Retailer Canada Goose began trading this week and shares of the high end clothier are up nicely. The company sells high end or “non-crappy” parkas for $900 a pop. No wonder I don’t see them at Costco. Meanwhile, US based software developer Mulesoft debuted today and its shares had traders yelling “yeeehaw”. Geese, mules……..what’s next, opossums?