Model Changes – USA Stock Portfolio
Qorvo [QRVO], an Information Technology stock that reached an overvalued level. Qorvo went undervalued back in the February 2016. Since then the stock steadily improved until in early 2017 the stock reached an overvalued price but did not start a corrective move until recently. This placed the stock on the Sell Consideration list.
Coach to Acquire Kate Spade – Good for Coach
Coach [COH] is acquiring Kate Spade [KATE] at a price that reflects 96.3% Fair Value (Fv). KATE is currently trading at 88.3% Fv.
USA Stock Consideration Change Report
Busy Day, Market Moves Above 21,000 on the DOW and Stays Into the Close
Update USA Unemployment Rate
American unemployment rate for April came in in line with our forecast at 4.4%. This was a slight decrease from March’s 4.5%.
The economy generated 211,000 new jobs in April. Wages also improved by 0.3% to $26.19 / hour. Year-over-year hourly pay increased by 2.5% which is ahead of the inflation rate thereby improving personal income.
Update USA Trade Balance
Trade with other countries continued to expand and the deficit declined by 0.1 billion to $43.7 billion in March. Even though the monthly exports and imports dropped, they dropped nearly equally. The trade balance movement on a monthly basis was close to the average change since 1997. On a year-over-year basis the trade deficit grew by 7.5% because imports grew by $47.5 billion while exports grew, but by a lesser amount, $30.0 billion. The trade deficit remained near the recent trend of the past six years, post-Great Recession.