Stocks closed higher today with the Dow up 94 at 24,357 on lighter trading volume.
Swiss based food giant Nestle and Seattle (home of the head tax) based Starbucks announced a $7.15 billion deal in which Nestle will sell Starbucks bagged premium coffee to global markets. Nestle has 4X the revenue of Starbucks and in an effort increase global growth they decided to make a move into premium coffee. The deal will allow Starbucks to return about $20 billion to shareholders in the form of increased dividends and share buybacks.
Oil prices in the US crested the $70 per barrel mark today for the first time since 2014. On the supply side, Commerzbank guru Carsten “Fisher” Fritsch was quoted on CNBC as saying “The growth in production in the U.S. is being counterbalanced by the simultaneous decline in Venezuela," The oil patch is also keeping an eye on the US – Iran deal. A decision on whether to stay with it or not will be made by May 12th. On the supply side of the equation, Baker Hughes noted the US rig count was up by 9 rigs last week and not stands at 834. At the close today WTI crude oil traded at $70.68 per barrel up 1.4%.
25 Boy Scouts this weekend had a big bus wash and an outdoor cooking class. The lunkheads washed the old school bus we use to driver them around in. It is always profitable to clean the seats since you can find money, knifes and old candy bars that have fallen under the cushions. With the cooking class the scouts were given a list of ingredients and had to make a meal. The winner was the patrol called “the Canadians”. They made sweet and sour spam sliders with banana pudding and dried cherries. They outdid the Whacky Wizard Patrol who made spam tacos.