Stocks pulled back as a gubment shutdown looms. The Dow gave up 97 points to 26,017. Trading volume was off significantly which signals that big institutional buyers were not rushing to sell.
US Treasury bond yields hit highs after the weekly jobless claims were reported at 220,000 which is the lowest level in 45 years. The gurus are saying that economic data is coming in slightly stronger than expected and as a result treasuries have sold off and the yield on the 10 year moved up and hit 2.6%.
Amazon has narrowed its list of possible HQ2 sites to 20 cities. Needless to say, Portland is not one of them. My vote is for Austin Texas. Meanwhile the “bug eyes” in Seattle, aka The Amazon Spheres, are set to open January 29th. We posted a Geekwire article and video about it here on our Facebook page. This will put the “amazon” in Amazon.
Shares of Alcoa Aluminum sold off after the company reported earnings which failed to match both top and bottom line expectations. The company had a 25% increase in sales and a 643% increase in profits. The gurus were bummed by the report but most of them said to buy on weakness because sales and demand trends this year continue to look good thanks to strength in automotive and construction related industries. It’s interesting that with a 643% profit gain the shares would fall but as Steve Jobs once said “You can please some of the people some of the time…..”