Stocks pulled back in mixed fashion on weak economic news from Germany and a disappointing retail sales report. The Dow closed the day off 103 at 25,439 on mixed trading volume while the NASDAQ inched higher.
Amazon dropped a bombshell on New York City today by announcing it had canceled its plans to put part of the HQ2 project in Queens. While public support for the project was high there were several local politicians who did not like the tax giveaways associated with it or the potential disruption to the community and this animosity led to Amazon’s decision to bolt like a turkey through the corn. The company still plans on building its HQ2 in Virginia and is also looking at expanding in Memphis, Tennessee near where it is currently building out its air logistics hub.
Airbus CEO Tom “Endo” Enders announced today that the company would “Enders” production of the superjumbo A380 in 2021. The decision came after Emirates slashed its A380 order from 53 to 14 and will instead purchase 70 A330 Neos and A350s. The A380 faced headwinds since it was too big for many airports plus Emirates had trouble reaching deals with engine makers.
Network gear giant Cisco Systems reported better than expected earnings with a 5% revenue gain and a 16% jump in net income. The company increased its common dividend by 6% and announced a $15 billion buyback plan. Meanwhile shares of Coca-Cola were down thanks to disappointing earnings. Revenue was off 6% and net income was up 10%.