Stocks today started higher on “triple witching” which is options and futures expirations but then reversed lower and closed the day off 159 at 26,935. Trading volume was up. IBD still has markets in rally mode and BTS is back in high yield which is positive for markets. The pullback today was due to the quick ending of a preliminary meeting between trade representatives of the US and China.
Disruption from Amazon is hitting FedEx. Over this past week shares of FedEx fell after reporting earnings that were a huge disappointment. Revenue came in flat while net income declined 12%. The results missed estimates and gurus are concerned that all the Amazon trucks now gracing the streets of Seattle is bad for FedEx which earlier this year ended its delivery agreement with Amazon which, as we all know, is getting into the delivery business with its own Amazon Air operations.
John, Cleo and I were are a KMS conference the past couple of days talking markets, regulations and new technologies. The takeaway was that within the markets, most gurus are neutral with 50/50 stock bond allocations in a global economy that faces slowing growth and disruption from politics, innovation and trade. One guy showed an indicator that is forecasting a recession 30 months from now which puts it at sometime in early 2021.
We put a video on our Facebook page showing a video of a couple of future Boy Scouts and it accurately illustrates how they start out as lunkheads.