Your Thursday Blip 3/11/21

Your Thursday Blip 3/11/21

The stimulus bill passed the House yesterday and is headed to President Biden’s desk where he will sign it Friday in what it will be known in history as “trillion-dollar Friday”. Stocks are responding with new highs as the Dow closed out today’s session with a gain of 188 points at 32,485. Trading volume was lower but IBD has now switched markets back to rally mode.
For the first time in 14 months Boeing has reported more orders than cancelations. In February, the Lazy B had 51 cancelations against 82 new orders. As icing on the cake 16 orders which had been considered at risk were returned to the regular order book. During the month of February Boeing delivered 22 aircraft and since the Max was cleared to fly again there are now 14 airlines flying the plane on regular routes. Word on the street is that Southwest Air and Boeing are nearing a deal in which Southwest will buy dozens of 737 Max planes to start replacing the 470 aging 737 -700s in its fleet. This could be another huge win for Boeing.
Treasury yields held steady at 1.52% after a report from the Labor Department showed the CPI increased 0.4% in February giving the prior 12 months an increase of 1.7% which is still below the 2% target set by the Fed. While this report shows a tame inflation reading various industries like the e-bike industry are starting to raise prices because the cost of materials has been increasing. In the past few months aluminum and steel prices are up 15% and 20%, respectively, while rubber costs are up 20%, and corrugated cardboard for shipping boxes is up 10%. In addition, oil prices continue to shoulder higher with WTI crude hitting $65.78 up 2% today.