WAB Falls But the Consumer Looks Good

It’s a tough morning for our Buy List. Shares of Wabtec (WAB) have been down as much as 7.8%.

The S&P 500 is up to a new all-time high. The index is currently over 2,361.

The U.S. consumer appears to be doing well as reflected by some recent earnings reports. Home Depot (HD), for example, just reported blow-out earnings. HD said it’s going to buy back $15 billion worth of stock, plus they’re hiking their dividend by 29%. Also, Walmart (WMT) reported its best comp store sales increase in four years. Both stocks are in the Dow.

Interestingly, since its 1981 IPO, shares of HD are up 6,000-fold. Not bad.

I’d probably take the earnings reports from Home Depot, Walmart and Amazon over any government report on U.S. consumer spending.

Posted by on February 21st, 2017 at 10:06 am


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