It was a low volume mixed day as the Dow fell 15 points to 20,934. The NASDAQ eked out a small gain while the S&P 500 was down a bit.
An economist I have come to appreciate is Brian Wesbury. He works at a company called First Trust which I suppose is better than working for a company called Last Trust. Anyway Brian commented on the recent Fed rate hike saying that it was a step in the right direction although he suggested that economic data is strong enough to warrant 4 rate hikes in 2017 instead of 3. The guru consensus regarding yesterday’s action and comments about future hikes is that it is close to being spot on but with a “dovish” tone given recent signs of accelerating growth and inflation.
The Puget Sound Business Journal or PSBJ, is wanting to host a pro golf event in Seattle. It will be called the PSBJ PGA. They will also hand out free peanut butter and jelly sandwiches at the event so attendees can get a free PBJ at the PSBJ PGA. Just kidding! The paper did however report on the slow start this year for aircraft orders at both Boeing and Airbus. Boeing reported orders for 50 airplanes through Fed 21st while Airbus has zero orders and 10 cancelations. Airbus is expecting a 30% drop in orders this year but not to worry because the company has a 10 year backlog of over 6,700 jets while Boeing has 5,695 back orders.
WTI crude oil was flat at $48.80 per barrel while gold shot up $25.80 to $1,226 thanks to the dovish nature of the rate hike decision and a weaker US dollar.