The Dow continued its gain with a 40 point increase, and closed at 22,381.
Today, the final GDP report showed real GDP grew 3.1% in Q2. While the number is positive, economists were hoping that less of that growth was due to inventories and government spending. Regardless, unemployment is still relatively low at 4.4%, and continuing unemployment claims were reduced by 45,000. The Fed is likely to raise rates again in December, and according to Brian Wesbury, this seems warranted as a result of GDP, inflation, and unemployment numbers. He also commented that even with a rate hike, stocks still look good, and if a meaningful tax reform bill can be passed that would make them look even better.
In a call with investors today, American Airlines CEO, Doug Parker, said “I don’t think we’re ever going to lose money again.” Lower oil prices have certainly helped, but so have “ancillary revenues” – or as we know it, those annoying baggage fees. Robert Isom, the president of American Airlines, believes that American is “just scratching the surface” in regards to the “ancillary revenues”. I wonder if investors were charged a fee for listening to the call today?
Streaming TV provider, Roku, went public today. Shares were initially offered at $14, but opened trading on the secondary market at $15.78, and increased by over 50% during the day.
But the super cool award for the day goes to Aston Martin. They announced that they have built a three person submarine. For the affordable-for-some price of $4 million, you and two of your closest friends can cruise the underwater wilderness at depths of 1,650 feet and speeds of 3.5 miles per hour.