Your Thursday Market Blip 11/17/15

Your Thursday Market Blip 11/17/15

After yesterday’s rally the Dow this Thursday pulled back 253 at 17,495. The one saving grace from today was the light trading volume compared to yesterday’s strong up volume. It was a signal that big players were not rushing to the exits. Trading volume can shed light on the level of conviction with rising volume meaning more conviction and falling volume meaning less conviction.
Three things were notable in today’s market pullback. One was the strength of the US dollar which continues to move higher against global currencies. The second was the continued drop in oil prices ( WTI crude fell below $35/barrel) caused in part by a strong US dollar and the third was a drop in gold (down 2.4% at $1,050 an ounce) also partly attributable to yesterday’s rate hike decision and a strong dollar. The effects of these things will be to make US goods more expensive and pressure the margins of companies that deal in global export trade. Another affect will be low inflation for goods imported into the US and the falling price of gasoline which “might” translate into fatter consumer wallets.
Boeing received an order for 50 of its 737 Max jets and another 30 of the 737 Next Gen narrow body planes from airliner China Southern today. Ihssane Mounir, Boeing VP for northeast sales in Asia was exited and said this order, worth $10 billion, was a “solid endorsement” of the popularity of Boeing’s 737 line.
FedEx reported earnings yesterday and they were generally positive. Revenue was up 4% and net income was up 19%. These results were generally in line with expectations and the company was positive in its forward estimates. FedEx’s revenue had been pressured by decreasing fuel surcharges and foreign currency exchange headwinds.