The Dow rebounded today, gaining 28 points, and closing at 23,377. Main contributors were Goldman Sachs, Home Depot, Chevron, Apple, and Intel.
Goldman beat earnings by a wide margin, and is positioned well with another interest rate hike most likely coming in December. Home Depot looks good as there is plenty of material buying after the hurricanes in the southeast, and the fires in the northern California. Chevron saw a nice uptick as their first shipment of LNG is on it’s way to Japan. Apple is releasing the iPhone X on Friday, and Intel may get a larger piece of the “Apple pie” if Qualcomm can’t settle their dispute with Apple. Qualcomm currently supplies Apple with the modem chips for their phones, but if they cannot settle their differences, Apple may switch to using Intel chips more prominently – today, investors started to position themselves for this possibility.
The growth outlook is still positive as economic data showed another 0.4% growth in personal income for the month of September. While personal debt is at an all-time high, so are personal assets, and the debt to asset ratio is actually the lowest since 2000 when assets were actually artificially inflated due to the tech bubble. Debt to income is at its lowest levels in 35 years, which means consumers have room to spend.
Oil prices continue to climb after their big jump on Friday, and were at $54.42 at market close.
The Diagon Alley project finishes up today. Yesterday, Q13 was out filming, and if you check out this video, you’ll catch a glimpse of Bill at the 40 second mark in the orange shirt!