Stocks were higher in light volume trading as the Dow gained 70 points to close at 24,211. The NASDAQ also moved up on light volume and small cap stocks led the way. The tax bill is still in reconciliation and here is a preliminary look at how it might affect you. Go to the Tableau spreadsheet at the bottom of the article and click on your state and income bracket. Remember that the tax bill is not final and this chart is an approximation.
General Electric announced it was cutting 12,000 jobs in its global power division in an effort to reduce costs by $1 billion in 2018. GE continues to restructure as it struggles with sorting out its cash flow issues in the face of various obligations one being a pension shortfall. Someone visiting Boston where GE is moving to mentioned that the layoffs are coming as the company is building a fancy new office building.
The Dow Transportation index has been trading just off highs reflecting positive news in various sub sectors. One area that has picked up lately is the airline space. Shares of Southwest Air moved higher thanks to the company upping its Q4 guidance. Other airlines are doing the same thing and fears of an airfare war are giving way to indications of solid demand.
Spirit AeroSystems in Wichita and Oklahoma announced a $1 billion expansion and hopes to hire 1,000 new workers. The company said the move reflects significant growth in the aviation industry in general. Spirit produces fuselages for the Boeing 737 and ships them via rail to Renton. You can often see them on rail cars going through Wenatchee and the Stevens Pass tunnel. The current rate of production is 47 per month.