Markets ended the day mixed. The Dow closed up 32 at an all-time high of 20,100. The S&P 500 and NASDAQ meanwhile pulled back a bit. Trading volume fell across the board indicating investors were cautious.
The news and events from the White House, earnings, M&A activity, etc. etc. are coming so fast it is like drinking water from a fire hose. I decided that President Trump is to politics what Amazon is to traditional retail stores in that there are lots of changes happening to the established order.
Boeing reported solid earnings and posted a positive outlook for 2017 sending shares higher. Revenue for 2016 came in 1% lower due to slowing defense and space business but net income was up 54% thanks to operating efficiencies and 787 deliveries. At the Boeing maternity ward in Everett, WA, blue 787s rolling off the line are boys while pink 787s are girls. Boeing CEO Dennis “The Menace” Muilenburg said that manufacturing efficiencies will allow them to work through the monsterous 737 backlog at a faster clip. Boeing gets revenue from 90 countries around the globe.
The Commerce Dept. reported that December new home sales, which account for about 10% of the residential real-estate market, fell 10.4% to an annualized pace of 536,000. This reading fell the most in two years and missed expectations calling for a reading of 588,000. The inventory of new homes moved up to 5.8 months while the average selling price climbed 7.9% to $322,500. The average mortgage rate has increased from 3.5% to just over 4% since the election and while this affects affordability it also gets people to move faster and lock in the lower rates.