Stocks started May by gaining, even if only modestly. Dow was up 25, advancers ahead of decliners 3-2 & NAZ was up 24. The big news was that Exxon (XON), a Dow stock, reported record earnings for Q1, but slipped 3.51 because earnings were below expectations. Too bad! The reason they gave was lower margins. The Commerce Dept said jobless claims rose 35K to 380K last week, economists had been looking for a decline. The 380K number is approaching 400K which is considered worrisome because it's viewed as one sign of a recession. The Dept also reported that consumer spending was up .4% in Mar (double the estimates), but much of the gains were due to higher prices. In addition, construction spending fell 1.1%, the 23rd straight monthly decline. This news follows the 0.6% increase in GDP reported yesterday, very gloomy.
Home Depot (HD), another Dow stock, up 75¢, will close 15 underperforming stores (less that 1% of it's total). Housing market keeps taking it's toll. Kodak (EK), another Dow stock, reported a narrower loss on slightly higher sales, but the stock pulled back 1.13. The digital business was up 10% but that loses money while the film business slipped 13% but continues to make money.
We'll see if the markets can get used to a period without rate cuts. Early tax rebates are hitting the economy, but there are worries that won't be enough to help today's struggling economy.
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