Last year, business investments, as measured by the monthly Durable Goods Orders, peaked in July and slowed considerably before plunging in the fourth quarter. The conventional wisdom at that point was the "magic" of the Trump tax plan and its incentives had already run its course. Coupled with worries about the outcome of the China trade talks, many observers saw declining business investments as one of the reasons for an impending recession.

As it turns out, just like the stock market, that December swoon was the bottom for what is becoming an impressive reversal. These long-term investments bode well, not only for this year but also in 2020 and beyond.

Getting Kind of Hectic

This earnings season is hit-or-miss. Look below to those that missed. Market breadth yesterday was disastrous, far worse than one would have thought, as the NASDAQ and S&P 500 were higher. 

Uncle Joe is Back

Joe Biden is in the race, and it looks as if it will be about the politics of character based on his video announcement. What bothers me is him saying, or suggesting, President Trump, and a short video clip (the full four minutes is a fairer reflection) of his reaction to the Charlottesville, is the biggest single threat to America in his lifetime. 

I think one’s character is a fine issue. However, to say this is the greatest threat to America in 76 years is so over the top. Here are a few that might rank higher:

Other "threats" in Biden's lifetime:

• WWII
• Korean War
• Vietnam War
• Cold War
• Iraq War
• 9-11
• Aids Pandemic
• Apartheid
• Civil Rights Movement
• Education Crisis
• Drug Crisis

I’m so much more interested in economic policies. I know division and envy are great talking points, but I am looking for a plan that’s better than the current economy.

I hope people don’t conflate higher taxes on “the rich” as a magic elixir that will give them a raise or better job skills. 

Today’s Session

All eyes are on the parade of earnings, led by Amazon (AMZN) last night. The initial reaction saw the share price pop $51.00, then the stock was down $11.00, then it was even.

Winners

• Starbucks (SBUX)
• Ford Motor (F)

Losers

Intel (INTC) blew it, and the entire chip space is in trouble now.

Twitter Trending

Biden

Former VP Joe Biden announces 2020 presidential bid

#Sleepy Joe

28.2K Tweets

Charlottesville

21.2K Tweets

#Joe2020

Joe Biden running for president

#ThursdayThoughts

Deplorable Linda G. {⭐}, Red Nation Rising, and 3 more are Tweeting about this

#CreepyJoe

🇺🇸🔥Lady De’Plorable🔥🇺🇸, Glenn York, and 3 more are Tweeting about this

Uncle Joe

14.3K Tweets

#Catherine Pugh

FBI and IRS raid Baltimore City Hall and home of Baltimore Mayor Catherine Pugh Baltimore City Hall

10.9K Tweets

#DerangedDonald

Dpm, @Melissa, and 2 more are Tweeting about this

GDP

First quarter GDP blew away consensus coming in at 3.2%, above any estimate I could find, and well above where conventional wisdom was at the start of the year when consensus was 0.3%.  First quarter GDP hadn’t eclipsed three percent since 2013.

Those that got it wrong are trying to dismiss this number, which only hurts their own reputations (it’s fine to be wrong, but to make excuses based on animosity toward someone rather than respecting the data is unfortunate).

3.2% GPD Headline

• 1.2% Personal Consumption
• 5.1% Domestic Investment
• 3.7% Exports
• -3.7% Imports
• 2.4% Government Spending

Trade added slightly more than 1 percentage point to the number.  The same folks that said the trade war would kill the economy are now saying this is a trade war related anomaly. 

For me, the only real concern is residential investment, which was down 2.8% and is the fifth consecutive quarter of declines.

Comments

Twitter released statistics, actual numbers, in Feb 2019. Tweeting is not the mass communication tool it is played up to be. About 2% of account holders are really actively tweeting, making their perceived influence greater than what folks are actually thinking. C U on 4/26/2019 9:54:16 AM

Charles PAYNE, thank you & FBN for reporting FACTS. Please Charles investigate & tell ALL about CONTAMINATED RUSSIAN OIL & PIPELINE INTO EUROPE NOW CUTTING OFF THE FUEL? WHAT now, how bad German government messed up, Russia pipeline is pumping toxic contamination oil into EUROPE , whom president Trump warned about, & has said USA will sell you ALL the oil you need. Stop building pipeline, & paying Russian TROOPS wages buying PUTIN dirty oil. Literally CONTAMINATED , SO AGAIN president Trump Was right. You are the best CHARLES PAYNE & FBN Thank you president Trump. Ed on 4/26/2019 10:16:44 AM

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