Stocks sold off today with the Dow dropping 101 points to close at 23,461. Trading volume swelled indicating that the big boys are taking money off the table.
Retail stocks got a boost after Macy’s reported better than expected earnings. Stock in Macy’s was up 12% as sales were off 6% and net profits surprised on the upside thanks to cost cutting. Nordstrom’s reports earnings (or lack thereof) after the bell. Hopefully the Nordstrom brothers will bring some good news to the call.
While in China, Presidents Trump and Xi oversaw representatives from Boeing and The Chinese Aviation Supplies Holding company (CASHC) sign a 300 jet $37 billion order. This is similar to an agreement signed in Berlin back in July when China and Airbus signed an agreement for 140 airplanes valued at $24 billion. The CASHC will direct delivery of the jets to whatever airline within China needs them. Boeing shares were lower on the news as some of these orders are rumored to represent prior deals. One guy who works on these types of foreign deals said that Beijing is a master at selling the same agreement multiple times.
Oil had a good day. WTI crude rose 0.35 cents and is back above $57 per barrel. Natural gas continues to move higher hitting $3.20 per million BTUs. The recent price uptick is due to Saudi King Salman’s consolidation of power, tensions with Iran and anticipation of oil production cuts which could go into effect next month.