Stocks are bouncing around as the age of disruption rolls on. Between a strong jobs report, China trade tariff talks and an Elon “weird super inventive dude” Musk interview that short sellers jumped on, the markets were all over the place. The BTS and IBD indicators continue to show that stocks are in rally mode. The Dow closed off 79 at 25,916. Trading volume was low. For the week the Dow had a net loss of 0.2% or roughly 50 points.
The jobs report for August was better than expected as 201,000 news positions were created. The expected reading was 191,000 so the gurus were pleasantly surprised. The unemployment rate held steady at 3.9% but the best part of the report was a 2.9% increase in wages which is the fastest growth rate since the August 2009. “Ravishing” Rick Rieder, CIO at Blackrock, noted that the overall report serves as a capstone to one of the greatest labor market recovery periods of all time with wage rates finally starting to rise. Labor is tight however and rising wages is a signal that the Fed will most likely raise rates when they meet on September 26th and could have to up interest rates in December as well as an additional 4 times in 2019.
Shares of Tesla fell hard after a two-and-a-half-hour interview between Elon Musk and Joe Rogan in which they talked Tesla and life in general and which included a fascinating discussion about AI. During the interview however, Joe lights up a joint and offers it to Elon who takes one hit. Shortly after that someone frantically texts Elon and says, “What the heck are you doing smoking weed”. The news outlets and shorts jumped on the interview with the general tone that Elon is off his rocker sending shares lower. Meanwhile CleanTechica noted that Tesla is on target to produce 50,000 cars per quarter and is now the 3rd bestselling luxury brand in the US. So, they are either crazy or genius or…..both!
The scouts are back at it. Last night Troop 100 hosted its annual bbq to kick off the start of another year of work, challenges and most of all fun! About 85 people were in attendance and a good time was had by all. We are already working on our camp fire lighting ceremony for the spring court of honor. Check out the video on our Facebook page to see how we plan to light the fire this year.