It was a good week for the Dow as trade war winds seemed to blow in a positive direction at least for now. The Dow finished the week out up 69 points at 26,797. Trading volume was lower on the day and IBD has upgraded the markets to “rally” mode as price and volume trends turned positive. BTS is also taking a more positive view of markets but not enough to yet make a bullish call. Or is that a “Cullish Ball”. For the week the Dow gained 1.5% or just over 400 points. Oil prices continue to creep higher closing at $56.61 on bullish hopes or is that “Hullish Bopes”.
The latest labor report came in for August at only 130,000 which was less than expected. The unemployment rate remained flat at 3.7% but an estimate 571,000 people entered the labor force which was a good sign. The labor force participation rate hit the highest level since 2013. Average hourly earnings grew 3.2% and when you combine this with the increase in hours worked the total wage data showed a huge 4.5% increase which indicates that US consumers are flush and will continue to spend money like drunken sailors.
Costco announced that on the first day it opened the Shanghai store it got 139,000 people who signed up for memberships. Let’s see….that works out to about $6 million just in membership dues. Not bad for a day’s work.
I will be working on an eagle scout project tomorrow in Seattle’s Discovery Park. The young lunkhead will be putting in a boardwalk on 45 feet of trail that goes through a bog. We hope to have 15 to 20 scouts there helping.