The Dow ended the day up 7 measly points to close at 25,709. During the day, markets were mixed and traded back and forth in a holding pattern with trading volume drying up like a mud puddle in the desert.
The latest news from Boeing was that after a squabble, the black box from the crash site was flown to Paris, France where the official investigation will take place. The FAA and representatives from Boeing will be there working alongside the French Aviation Minister to try and determine the cause of the failure. Airline gurus are saying that any resolution which will get the 737 Max flying again could take up to 6 weeks. It is estimated that 737 Max aircraft represent less than 1% of total global flights. The biggest US operator of the 737 Max is Southwest which, out of a fleet of 750 aircraft, operates 34 737 Max jets. Seattle based Alaska Air has several of these planes on order but none in operation and is scheduled to take delivery of its first Max 8 in June of this year.
Tesla is scheduled to unveil its new model Y SUV tonight at an event in their design facility in Los Angeles, CA. The Model Y is a smaller version of the Model X and is expected to cost $40k. When asked if he will be there, Elon Musk said: “Y not?” The lineup of Tesla cars is now the models S, 3, X and Y which stands for “SEXY”. The SEC however wants it to read…. “SECY”.
WTI crude oil this year has risen from $47 per barrel to $58 per barrel. With concerns over slowing global economic growth the US energy sector is benefitting from sanctions against Venezuela and Iran. As US oil producers are beginning to ease production in the face of ample supply and as a result of last years price pullback, the recent US price is benefitting from the sanctions imposed on Venezuela plus US producers are looking forward to pending sanctions against Iran which are scheduled to come into place in a few months.