Your Tuesday Market Blip 1/29/19

Your Tuesday Market Blip 1/29/19

The markets closed the day mixed as the Dow was up and the NASDAQ was lower. The Dow closed the day up 51 to 24,570. Trading volume across the board was lower than polar vortex temperatures in Chicago. This week, 22% of S&P 500 companies will report earnings. Harley reported lower earnings as sales in the US and China declined. Apple reports after the bell and Tesla reports tomorrow in what is sure to be a circus as competing long and short investors brace for whatever may come. Tesla is expected to eek out a small profit.
We are changing the nickname of Boeing from the “lazy B” to the “busy B”. Fifteen or so years ago Boeing stopped production of the 757-midrange jet and finally, sometime in March this year the company is expected to announce its replacement, the 797. This will be the first new aircraft that Boeing has developed since the 787 back in 2004. Boeing has been successful with both the 737 and the 787 but now needs to come up with an airplane that fills the gap between short hops and long hauls without breaking the bank. In the meantime, Boeing made its first sale of 737 MAX aircraft to Japan. ANA Holdings announced it will purchase 20 737 MAX jets for $2.3 billion.
Chinese trade representatives will be at the White House this week to discuss trade and try to hammer out a deal before a March 1st deadline when more tariffs kick in on Chinese goods. Meanwhile back in Beijing, lawmakers have begun work on passing a foreign investment law or “FIL” that was first proposed in 2015 but went nowhere. Now however, with the threat of tariffs and an exodus of international companies from China coupled with rising chatter and frustration over piracy and protection of trade secrets, China is looking to pass the law quickly and hopefully stem the tide and show it is trying to become a more trustworthy global player.

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