Stocks opened higher but then reversed and ended the day down as the Dow fell 54 points to close at 23,273. The trading volume was lower that whale dung indicating that big buyers were not sellers into this pullback other than GE which saw its shares hit new lows as investor fears of a dividend cut won’t go away. Tech stocks were lower pm heavy trade however as money seems to be rotating out of some tech issues and into bank and material stocks which favors the Dow over the NASDAQ.
It will be a huge week for corporate earnings as 12 of the 30 stocks that make up the Dow will report Q3 numbers. Oil services giant Haliburton reported better than expected numbers to start the week. Haliburton posted a 42% revenue gain and net income went from a penny per share to .42 cents per share in what was the largest quarterly profit in the past few years.
Mike “The Logger” Covey, CEO of Spokane based Potlatch Timber Company announced today that they were merging with Deltic Timber out of El Dorado, Arkansas in an all stock deal which would give Potlatch ownership of 530,000 acres of timberland in Louisiana and Arkansas. Potlatch has always been a favorite of mine having toured some of their white pine plantations in Idaho and seeing the quality work they do with reforestation. They also treat the loggers with respect. The deal means Potlatch will now have approx. 1.93 million acres of timberland valuing the company at roughly $4 billion pine cones!