Your Weekly Market Blip 5/11/18

Your Weekly Market Blip 5/11/18

Stocks ended the week on an uptick. The Dow was up 91 points to 24,831 on lighter trading volume. IBD has now switched to “market in rally” and both it and BTS are positive on the market outlook. For the week the Dow was up approx. 2.3%.

According to the University of Michigan, consumer confidence came in at 98.8 which was better than expected. CNN also reported that consumer optimism hit an 11 year high with 57% of respondents saying they were optimistic regarding the economy.

Shares of chipmaker Nvidia were trading near all-time highs after the company reported great earnings. Revenue was up 66% and net income was higher by 151%. The company makes chips for autonomous cars, video games and bitcoin miners. While the numbers came in ahead of estimates CEO Jensen “The Genius” Huang noted they expect chip sales to bitcoin miners to fall by about 60% due to the crypto currency value being cut in half and facing a barrage of criticism from big investors like Warren Buffet to top economists like Brian Wesbury. Nvidia however makes most of its hay from gamers and they are as abundant as ever.

Producer price inflation rose 0.1% in April which was less than expected but still is up 2.6% from a year ago. Consumer prices in April were up 0.2% which was also slightly less than expected. Gasoline prices were up 3% and housing costs were up 0.3% which were the big drivers behind consumer inflation. Meanwhile offsetting the rise in gasoline and housing were a drop in the price of electricity and natural gas. Wage inflation for April was flat but signs point to a strong labor report for May as more people get back to work.

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