Stocks opened the trading week with the Dow moving up on heavy trading volume to close higher by 287 points at 25,826. The spark behind the rally was related to developments in the trade dispute between China and the US. President Trump is holding off on more tariffs for 90 days and in return China will buy more goods from the US. The 90 days will give the two sides time to meet and work out differences. Chinese markets were up on the news.
Shares of Boeing shot higher on the trade news. According to recent data, China accounts for about 1/3 of Boeing’s commercial aircraft revenue and any improvement in trade with China will help the boys over at the Lazy B sell more jets. Car stocks also moved higher on the trade news. China had increased tariffs on US cars as retaliation for US tariffs. Tesla had seen a total of 60% in costs added to the price of their vehicles as a result of this process. Ford, GM and Tesla all moved higher today.
Turmoil in the oil patch drove prices of WTI crude oil higher. Qatar announced that after 57 years with OPEC it would drop its membership on Jan 1, 2019. Could OPEC be falling apart? Meanwhile Alberta, Canada said it will cut oil production by over 300k barrels per day and both Saudi Arabia and Russia continue to coordinate with each other as they face pressure over recent negative incidents proving that misery loves company. WTI crude rose 4.4% and finished the day at $53.21 per barrel.
Boy Scout Troop 100’s Christmas tree sale is going well. Over the weekend the scouts moved over 700 trees and countless rolls of garland. The Ballard neighborhood in Seattle used to be mostly Norwegian fishermen eating lefse but now Ballard is a desired location for Amazon millennials. The millennials are starting families and embracing the traditional Christmas tree for the holidays and when you combine this trend with a bunch of bumbling yet earnest lunkhead Boy Scouts selling those trees the results are wonderful and a good time was had by all.