Stocks fell as big bank earnings reports hit the wires. The Dow was down on very light volume ending the day off 27 points to 26,384. Both IBD and BTS are still “market positive” and todays pullback seems more of a resting period after last Friday’s big gains.
Big financial firms continue to report numbers that, while not hitting the golf ball like Tiger Woods, are generally ok. Goldman Sachs reported earnings which fell 18%. The numbers still managed to beat estimates however as net interest and advisory income was up big while investment banking revenue was flat. Citigroup also reported earnings. Revenue gained 8% while net income was higher by 20%. Citi benefitted from fixed income trading, currency and commodity trading while equity trading revenue fell 24%. Citi’s Investment banking revenue was up 20%. Bank of America reports earnings tomorrow.
Boeing announced that it secured a $14.3 billion defense contract to modernize the US Air Force’s B-1 and B-52 bombers. The work is to be performed in Oklahoma City, OK and the contract is expected to last until April 2029. The B-52 continues to be the mainstay of the US bomber fleet even though it was first introduced in 1955. Other notable things that happened in 1955 were: Ford introduced the Thunderbird, Dwight D. Eisenhower was President, Bill Gates and Steve Jobs were born, Disneyland California opened its doors and Ray Kroc opened the first McDonalds.