After watching the crowd at the Panama Hotel for a while, Henry leaves and walks back to his house, where he now lives alone because his wife is dead and his son lives at the university. Tear.
His son Marty knocks on the door and comes in. Marty and Henry haven't been talking much since Ethel's funeral because they just don't know what to say to each other.
Henry is also worried about financial issues. He's had to take out a second mortgage in order to pay for Ethel's treatment and Marty's education.
Marty apologizes for not visiting more often and hands his father a red lucky envelope with his report card in it—he's graduating with a perfect 4.0.
Henry thinks about how he never finished college because he decided to become an apprentice draftsman for Boeing—and because he never felt like he fit in at school. He always felt isolated and rejected.