Stocks are churning while trading at or near highs. The Dow posted a gain of 45 to 22,203. Trading volume was lower across the board. The one stock driving the Dow higher was Boeing (“Boeings” as my late Mother in law called it) which jumped higher after announcing a 787 production increase to 14 Dreamliner’s per month starting in 2019. The current production rate is 12 per month.
Inflation numbers ticked up in the most recent reading as the effects of Harvey and Irma pushed gasoline prices higher. The CPI jumped 0.4% to lift the YOY change to 1.9% up from 1.7% in July. The inclement weather in Texas and Florida pushed gasoline prices up 30 cents per gallon as 9% of US refining capacity is still off line according to Markit Research. The higher inflation readings are pushing the odds of a Fed rate hike in December in an upwards direction. Goldman increased its odds of a rate hike to 60% from 55%. The Federal Reserve meets next week so more information should be available at that time.
We are living in an age of incredible innovation and Elon Musk is one of the leading visionaries of this era. A sign of greatness is humility and the ability to laugh at one’s self. Elon revealed a hint of this when he released his “SpaceX blooper video”. It is great to watch. Find it here. This shows that Elon is in that rare class of people like Joel Salatin, Steve Jobs and Thomas Edison who rise above limits. People like Kim Jung Un on the other hand have the bloopers but live in fear, limitation and misery and thus would not have the guts to make a video like this.