Earnings season is now underway.  It’s still early, so it’s not realistic to draw any general conclusions.  So far, there are some contradictory data points; the consumer seems strong, but manufacturing and some industrial activity appear to be slowing.  Bank profits have been outstanding, yet CSX railroad volumes are off; it just may mean that certain sectors may be having particular challenges.

The Bull has written that many companies added to inventory anticipating future or higher tariffs.  This inventory may not yet be worked off, resulting in a lull in present activity.  That would explain why final demand activity can still be strong, but further down the supply chain slow; we shall see.

Next week is a heavy one for earnings reports and the picture may clear-up.  In the meantime, the U.S. stock market continues to hold up very well.  Money flows are still strong, and investors seem to give current mixed news a pass.  And why not, we will get additional information soon enough; stay steady, my friends.

The Lonely Bull