The Dow was up 46 points to day closing at 23,979 on lighter trading volume. During the day stocks had been up over 400 points as trade talk softened but the rally faded into the close as investors remain cautious.
Boeing received an order for 47 Boeing 787 Dreamliners from American Airlines valued at over $12 billion given current list prices. The order also includes an option to purchase an additional 28 long-haul jets. The order also cancels a deal that US Airlines had made with Airbus to buy 22 A350’s back before it was purchased by American Airlines. So American Airlines buys US Airlines then cancels its Airbus order and takes Boeing to the prom instead.
According to Random Lengths, the prices of lumber is moving higher again after a short hiatus. The Random Lengths Framing Lumber Composite index moved up from $489 to $492. The index was at $414 this time last year. Dealers are moving sales estimates higher and inventories for lumber and structural products remain below average. Oregon is becoming a leader in the use of “mass timber” as Portland recently completed the tallest wood CLT building in the country at 8 stories with plans for a 12 story wood building already on the drawing board.
When it rains it pours. GE was downgraded today by JP Morgan analyst Brian “bergie” Langenberg who said the company botched its power division, will need to do a yard sale of various divisions and now faces multiple investigations by Federal agencies who are looking at accounting issues and even subprime mortgage issues. What GE is facing is what happened to supercross motorcycle riders this last weekend at Centurylink Field when rain turned the event into a mud fest. Check it out here on our FacePlant page.