A lot of people started the year talking about a recession, but 2019 was a big sucess. A great bull market and a big surprise for many. President Trump have played a huge part in it by cutting tax and regulations and that`s what Wall Street like.
Only a few trading sessions are left of this Wall Street record year. It has been an unbelievable year for stocks! Recession will come one day but the bull market will continue until it stops.
People love days like this; Thanksgiving, Black Friday and Cyber Monday. So far, Black Friday has been very chaotic, but this time it was much better. This is very important days for all the retailers, So, how is it going for them this time?
It`s no doubt; Trump`s booming economy is working. Thanksgiving broke records with $4,2 billion in online sales. Black Friday also hit a new high. Consumers spent $7,4 billion online last friday buying goods online via computers, tablets and smartphones.
Smart people buy products on days like this, and if you are one those who didn`t use your card last week, you have a few hours to do it today. On Cyber Monday. And if you do, you will not be alone to do it.
Last year, Cyber Monday sales hit $7,9 billion, but today it is estimated to hit $9,4 billion, according to Adobe Analytics. If this holds, it will be a jump of 18,9% from last year.
Shoppers do not go to the stores on days like this. It`s all about online sales. Not only that. Extreme weather will also force some people to shop online, and shoppers are expected to spend $11 million per minute during the peak hour of 11:00 p.m ET.
The reason why the lines were thiny on Black Friday is the retailers early sales start. Retailers began sales in early November, so people didn`t wait until Black Friday or Cyber Monday this time. This also means less chaos.
In fact, Black Friday was predicted to be the busiest shopping day of the year in the U.S for shoppers to head out to stores, but people made it online on their shopping carts. Online spending on Black Friday hit a record of $5,4 billion, and that is up 22,3% from last year.
The winners in this game so far is Target, Best Buy and Walmart, while the department stores are still a little bit slower. Both, Target and Walmart saw bigger jumps in online customer spending than Amazon during the first two weeks of November.
Nordstrom had the biggest jump in online sales. Up 60%. Second is Walmart with a 53% jump, while Amazon on the third place jumped 49%, and that`s huge for an already Giant in online sales if you ask me.
Buy online and pick up in stores as well as curbside pickup services since November 1 have seen a 43,2% growth since 2018, according to Adobe. Shoppers have so far spent a record $72,1 billion online between November 1 and December 1. Shoppers are also on track to hit $143,7 billion in online sales for the full holiday season.
One of the most popular products on days like this is a Smartphone. So, it`s headed for a new online spending record next year. Or…..
If you`re a big fan of James Bond, you
already know what Aston Martin is. The British company are the main
supplier of cars to 007. But will James Bond be linked to the new SUV
in the future? Probably not, because the target for the new vehicle
is wealthy women.
Most of the British company`s current customers are men, so they want to widen its appeal to women with this long-awaited £158,000 DBX model. The new car goes from 0-62mph in 4-5 seconds and have a top speed of 181mph.
A new car travels 51,7mpg on average in
the UK, which is more than twice as much as Aston Martins at 19,7
miles per gallon of petrol. The comapny said it «targeted» 269g of
CO2 emissions per kilometre, compared with an average of 120,4g/km of
new cars registered in the EU.
Aston Martin is a British independent manufacturer of luxury cars and it was founded in 1913. The 106 year old carmaker has gone bankrupt seven times and the stock has been declining for a long time, so they need a boost to get back in balance again. Maybe the new DBX can help the company to reach their goal. The stock went up 2,01% after their release earlier today, on Wednesday.
The DBX is designed to compete against
Bentley`s £133,000 Bentayga, Rolls-Royce`s £264,000 Cullinan,
Porsche`s £101,000 Cayenne Turbo and Lamborghini`s £160,000 Urus.
They launched the car simultaneously in
Los Angeles and Beijing and said the DBX had been «very deliberately
created with instant familiarity and ease of use from the start».
The company hopes to roll-off its production line in spring 2020.
Lowe`s Companies will report earnings
before the market opens on Wednesday 20, and the consensus EPS
forecast for the quarter is $1,35. That`s much better than last years
$1,04 at the same time.
EPS at $1,35 will be a jump of +29,8 percent YoY, and revenue is estimated to be $17,69 billion. Lowe`s are joining Trump`s economic boom in the market and have so far jumped 25 percent in 2019. I think they can feel the boost of the Fed`s interest rate cuts.
Builders started construction on new
homes at a pace of 1,314 million in October, the Commerce Department
reproted Tuesday. Housing starts were up 3,8 percent from revised
1,266 million in
September and 8,5 percent higher than
the same month last year.
Building permits for privately-owning
housing units were authorized at a seasonally-adjusted rate of 1,461
million, and that was 5 percent above the revised pace of 1,391
million set in September, and 14 percent above last year`s rate.
This was the fastest rate of
building-permit authorizations recorded since 2007. Permits for
new-home construction hits post-recession record high in October.
Home Depot dropped yesterday after the
company cut full-year sales growth guidance. They reported $2,53 in
EPS. Wall Street predicted $2,52, but the results are looking fine.
Comparable store sales growth in 2019 will be 3,5 percent compared
with pror guidance of 4 pecent, the management of Home Depot said.
Lowe`s dropped 1,42 percent yesterday while Home Depot dropped 5,46 percent. Lowe was dragged down by Home Depot. Will Lowe turn that around on Wednesday? Lowe`s has a call scheduled for 9 a.m ET on Wednesday.
So far, it has been a good earnings
season with a higher than average seventy-five percent of S&P 500
companies that have reported beating expectations. That was strong
enough to push the stock market to record highs.
On Tuesday 19, Home Depot will report earnings before market open. The report will be for the fiscal Quarter ending October 2019, and the consensus EPS for the quarter is $2,52, which is up from the same quarter last year at $2,51.
The Home Depot is the largest home
improvement retailer in the United States, and considered to be the
best run retailer in the world. I have been watching this stock for
years and it`s interesting and funny to see that they beat estimates
time after time.
Home Depot opened up two stores 40
years ago. In 1979, the first two stores, built in spaces leased from
J.C Penny that werw originally Treasure Island «hypermarket». As of
October 20, 2019, they have 2,285 locations and 413,000 employees.
The founders created a company to keep alive the values that were important to them; Values like respect among all people, excellent customer service and giving back to communities and society.
In December 2006. the Home Depot
announced its acquistion of the Chinese home improvement retailer The
Home Way. The acquisition gave the Home Depot an immediate presence
in China, with 12 stores in six cities.
But the Home Depot didn`t succeed in
China. They lack of success in China has been attributed t o the
disconnect between The Home Depot`s do-it-yourself ethos and Chinese
culture. The market in China is more of a do-it-for-me culture.
So, as of April 2011, Home Depot shut
its last Beijing store, the fifth Home Depot to close in China in the
previous two years. As of September 16, 2012, all seven of the box
stores in China had been shut down, and they has no immediate plans
to further expand its specialty stores in China.
The US-China trade war is risky but the
impeachment is even more risky. They want to impeach a president that
have done so much for its own people, and tax cuts and many reforms
have boosted to U.S economy.
Strong consumer activity and low
interest rate is helping companies like Home Depot, and this is why
they beat earnings all the time. At least for the last two years. But
according to DM Martin`s Research, the RMI (remodeling market index)
and future bid activity have come off their 2017 peaks in the past
The management doesn`t seems to be concerned about the demand. Last quarter they said; «Current health of the U.S consumer and a stable housing environment» was postive for them. Its difficult not to be bullish, and share repurchase can push the EPS higher.