Stocks opened the trading week with a small uptick. Tech stocks did well thanks to an analyst upgrade of the chip sector. At the close the Dow gained 17 points on light trading volume to finish at 27,171. This week will be a busy one in terms of earnings reports. Next week will be the Federal Reserve’s July meeting where it is expected they might lower interest rates.
Shares of Boeing started the day higher as investors were feeling lucky heading into the earnings report scheduled to be released on Wednesday. Fitch rating service however had a different take and issued a warning that due to charge offs and the logistic nightmare of having to store scads of completed 737 Max aircraft they were considering Boeing for a possible debt review and downgrade. Boeing has been stockpiling finished 737 Max jets over at Moses Lake and the longer the delay for delivery the bigger the problem becomes
With the extracurricular activities happening in the Straits of Hormuz the price of oil has been creeping higher. WTI crude was up a half point to $56.17 a barrel. The gurus however do not expect a huge spike in oil prices because the feeling on Wall Street is that global demand is weak thanks mostly to softening economic numbers from China coupled with the fact that Russia and the US are pumping oil like crazy. I guess they feel it is a good time to finally rush out and buy that used Hummer!