Stock markets were open for Veteran’s Day, while the bond markets took a holiday. Trading volume was low and the Dow started the day down but eventually crawled back to gain 10 points and close at 27,691. There continues to be optimism surrounding corporate earnings, and their financial health going forward. The big corps are the ones that seem to be sitting the best with about $2.2 trillion in cash on hand. Part of the cash build up is due to decreased spending, and what spending is taking place seems to be more on labor as opposed to equipment. In addition, companies are positioning themselves to not only survive any potential downturn, but also to take advantage of a downturn by buying assets at a lower price.
Today, lots of buying supported the recent downturn in Boeing’s stock. The local airline manufacturer announced that they believe that they will have the 737 Max up and running by the end of the year or at least by January, and this saw their shares move up about 5% for the day. The FAA has yet to confirm this, and ultimately it will be up to them as to when the Max gets off the ground.
November 11th marks Alibaba’s annual singles day, and they chose this day because of the four ones in 11/11. Sales topped last year’s record in just 16.5 hours, and total gross sales came in at about $30.5 billion in merchandise, which is 87% of Amazon’s online sales from last quarter!
And speaking of Amazon, them and the city of Seattle made the national news as Amazon’s quest to elect a more business friendly Seattle Council has most likely failed. Amazon had put roughly $1.5 million into candidates that they supported for Seattle City Council. With the elections in the backdrop, Jeff Bezos may be looking to put an additional $1.5 billion into Seattle, but this time to potentially buy the Seahawks. Bezos has been vetted by the NFL, and the owners have approved him to purchase a franchise. No team is officially for sale, but with the recent deaths of Paul Allen and Broncos owner, Pat Bowlen, the NFL could be looking for new owners.
Finally, but certainly not least, Greystone would like to wish all the veterans out there a Happy Veteran’s Day. We appreciate your service, and the selflessness with which you either currently serve or have served.