Stocks continue to meander back and forth. After being down early in the day the Dow closed 91 points higher at 25,717. Trading volume was lower than whale dung and for now all seems quiet while traders await news on the eastern trade negotiation front.
Boeing held a meeting yesterday at the Renton 737 plant and rolled out its software fix for the controversial MCAS system. The company will now send the upgrade to the FAA by tomorrow for certification. Once the FAA certifies the software it will be rolled out along with a training program. In conjunction with the ongoing grounding of its 737 Max fleet, Southwest Air has lowered its profit forecast. Indonesia’s national airline, Garuda, has moved to renegotiate an order for 49 737 Max jets saying that while it wants Boeing aircraft it does not want the 737 Max. Airbus continues to pick up business with Bamboo Airlines in Vietnam placing an order for 50 Airbus A321Neo jets. Meanwhile Wow Airlines in Iceland shuttered operations leaving thousands of passengers stranded as it ran out of cash. The company operates 11 A321neo’s and found out the hard way that $49 transatlantic flights don’t cover the rent. Maybe they will change their name from “Wow” to “Oops”.
Mortgage rates have fallen below 4% recently and this is spurring activity in the housing space, especially in Seattle. Also driving Seattle’s real-estate market are tech companies from all over the globe that are setting up engineering centers in Seattle in order to access a young dynamic workforce that is flocking to the area drinking coffee and watching soccer games. Geekwire Magazine reported that online payment company Square just leased enough space in downtown Seattle for 100 workers. According to Geekwire, Square is joining 120 other tech companies that have set up engineering centers in Seattle. These companies include software firms like Splunk, car companies like Mercedes that hires people to work on AI camera’s for autonomous driving and rocket companies like Blue Origin. Real-estate gurus in Seattle see no sign of a slowdown in the Puget Sound region over at least the next couple of years.