Your Monday Market Blip 9/9/19

Your Monday Market Blip 9/9/19

Stocks opened the week on a mixed note with the Dow up 38 points at 26,835 while the NASDAQ fell 19 points. Trading volume was up. IBD has markets in rally mode and we have recently seen a shift as safe assets like treasury bonds and utilities have reversed lower indicating that they may be getting too pricey or that investors are willing to take more risk and rotate into stocks. Gold also reversed last week and continued to pull back to close at $1,508 an ounce down a half point.

Shares of Boeing (“Boeing’s” as my mother in law called it) were lower after a weekend FAA test on the new 777 X failed when a door blew out while under pressure. The “ultimate load test” was the last test before FAA certification. The test is designed to put the aircraft under extreme stress and while the wings held up well the doors apparently popped off which means Boeing will have to figure out why and fix it before retaking the test. This delay comes on the heels of another delay which was caused by the plane’s GE-9X engine. Boeing and Airbus are competing for an ultra long flight from Australia to London and New York and this delay might put Airbus in the lead as Qantas considers which plane to buy.

AG’s from 48 states are set to announce an investigation into Google over the effects of their dominant market share in search and advertising. The state AG’s from New York and Texas will lead the effort and are specifically looking to see if Googs 1) stifles competition, 2) restricts access and 3) harms consumers. It will be interesting to see how this will play out. Shares of Google were lower on the news but this investigation is not yet seen as affecting the monster cash flow this company generates.

The Eagle Scout project went well. The scouts dug dirt, hauled rocks and beams and put in blocks and boards from 8 am to 4 pm and then went home and watched an amazing lighting storm before returning Sunday to wrap things up. The Seattle parks guy was ecstatic and even gave the lunkheads a ride in the back of his truck through the park which they all enjoyed immensely. While he might have violated some arcane safety regulation, he did manage to become number one on their Christmas card lists! Check out pictures on our Facebook page.

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