Strong earnings reports drove stocks higher as the Dow moved up 145 points on heavy trading volume to 26,656. Tech stocks have taken leadership of the market. Both IBD and BTS indicators are positive.
Tesla held its “Autonomy Day” event in which it rolled out a microchip the company had designed for its own cars. Tesla stopped using Nvidia chips a couple months ago and now makes its own chips via a joint venture with Samsung. With every 100 chips, Samsung throws in a free washing machine. Tesla claims the new chip will enable them to roll out a true autonomous “Robotaxi” service sometime in the next couple of years. After the meeting Wall Street remained skeptical and since Tesla is going where no car company has gone before it will take time to see if Elon’s claims are legit. The rubber hits the road tomorrow however when the company reports earnings.
Twitter reported earnings which did much better than expected sending shares higher. The company reported a revenue gain of 18% and a jump in net profits of 131%. All the confusion and political disruption we see in the news generally starts with a tweet which is helping make Twitter rich and which will most likely only increase as the tweet storm increases headed into the next election.
New home sales were up 4.5% to an 18-month high thanks to lower mortgage rates. Meanwhile lumber prices pulled back for the eight-straight week as demand for lumber is developing slowly while supplies at all levels including the mill are ample. Another factor behind the slow demand is rain in California. It seems that environmental regulations can levy big fines to trucks if they transfer mud from the job site to a city street so the above average rain fall in CA is keeping trucks parked until things dry out. Who would have thunk!