Voting for Democrats was spectacular!
A few weeks ago, we told investors that you really wanted to see the Democrats take the House. That way, we would get gridlock and a check on the president, maybe even some help with tariffs.
And now to add fuel to the fire, President Trump has (fired) asked Jeff Sessions to resign. The fire there is marijuana stocks. Tilray (TLRY), Canopy (CGC), and others are screaming since the known pot hater (Sessions) has been put out to pasture.
But can the party last?
Hmmm. We still have the fed tomorrow, and the ten-year is still high at 3.22% (TNX). Tariffs are still here for now. And we still have a deceleration in earnings next year. So, we got problems. Oh, I I really don’t like the Semiconductor Index (SOX)(SMH) only up 1% today. At least biotech (IBB) is up 2%. And energy is a disaster – oil (USO) is down in a straight line from $75 to $61. Finally, housing (XHB) is still way off its highs, and there is more housing inventory today than at any time since 2011.
I know, we have a lot of good things going on too – GDP, consumer spending, and employment. All I am urging is don’t get too comfortable that the end of year rally is here. The end of the year is still a long way away, and we have the Fed, the G20, and an increasingly irritated president. I am just waiting for him to take credit for the rally.
Just don’t get too hopped up here (or in Michigan), and make sure you have dry powder and some stocks to sell or short.
AbbVie's (ABBV) cost of products sold increased from $1.62 billion in the third quarter of 2017 to $1.83 billion in the third quarter of 2018.
Coca-Cola (KO) impressed investors with better-than-expected revenue and earnings for the first quarter.
Microsoft (MSFT) announced this month that it had acquired a San Diego startup called Express Logic for an undisclosed amount.
Spirit Airlines is scheduled to report its first-quarter results on April 25. The airline has an impressive record of beating earnings estimates.
On April 23 before the market opened, legacy motorcycle maker Harley-Davidson (HOG) reported its first-quarter earnings results.
Williams Companies (WMB) is scheduled to release its first-quarter earnings on May 1 after the market closes.
McDonald’s (MCD) is set to report its first-quarter earnings before the market opens on April 30.