Stocks ended the trading week with a thud as the Dow fell another 424 points or 1.7% on heavy volume to finish at 23,533. Global markets are not doing much better. Japan was down 4.5%, China was off 3.3% and Germany was off 1.7%. For the week the Dow posted its worst performance since early 2016 falling 5.3%. Techs and banks were lower while defense stocks were up because the budget deal fully funds the military. Volatility remains high. At various points during the day the market was up triple digits but the bias now appears to be negative with early morning rally’s giving way to late day retreats. The markets are sorting out the trade tariff situation between the US and China which is now appears to be the main driver of equity prices. BTS is still in cash and IBD indicators are in “correction” mode.
California based home builder KB Homes reported earnings today and while revenue came in on the mild side all other metrics were well above estimates. Net income gained 167% on a 6% revenue increase as the company delivered 2,223 new homes with an average selling price of $389,000. The average selling price was up 7%. KB also reported that net orders rose 8% and CEO Jeff “Mill Grade” Mezger said that margins should improve over the course of the year and the spring selling season was shaping up well as first time home buyers are driving demand for higher end homes.
San Francisco based Drop Box came public today and shares shot up 40% from the IPO price. Drop Box is a place to store photos, music and other files. It competes with Amazon, Google and Microsoft is this space and currently has revenue of about $1.1 billion.
Last night at the Court of Honor there were were 13 scouts who were earned rank advancement as well as numerous other scouts earning merit badges. One merit badge that several scouts got was the “cooking” merit badge and I asked someone “What about the eating merit badge?” Six new lunkheads joined the troop and a good time was had by all. The troop this weekend goes to Shaw Island for a camping trip in the rain and wind.