Q: Why don’t stockbrokers watch NASCAR races on TV? A: They can’t stand the crashes. (Ha ha)
The Dow today overcame bad news from Boeing (“Boeings” as my late mother in law called it) to post a gain of 57 points at 26,827. Trading volume was lower. Banks were clear leaders as financial stocks busted higher on strong volume. Energy stocks also did well. Positive trade news regarding the US and China appeared to be the main driver behind the move higher. The US and China are suggesting they will sign a trade agreement next month at the APEC Summit in Chile. There are a slew of earnings reports due out this week to include Apple and Tesla.
Last week Boeing sent some archived text messages to the FAA from a test pilot who, while he appears to have told the FAA that the system was fine, texted other pilots expressing his concern about the anti-stall system. It’s kind of confusing since the Department of Justice was and is involved along with the FAA and apparently the pilot was pleading the 5th and stonewalling Boeing’s requests for clarification. All this created a lack of communication that might have contributed to one of the crashes and hampered the investigation. Mr. Market was not happy about this latest development and investors dropped the Lazy B like a hot potato as shares fell almost $50 before a slight rebound. The Boeing board is meeting to discuss this and the company reports earnings on Wednesday in what will be a “must see” event.
Shares of biotech company Seattle Genetics jumped 15% after the company announced progress on a breast cancer drug. The company added a drug called tucatinib to a regimen using Roche's Herceptin and a generic medicine known as capecitabine and showed that outcomes in breast cancer patients improved when all three drugs were used. While this is good news it seems you need to be a doctor with a degree in English just to pronounce the names of these things.