Stocks played hopscotch today before the Dow finished with a 19-point loss at 27,071. Trading volume was mixed. Tech shares were lower as Google reported disappointing results. Banks were higher on the day and Boeing rebounded a bit as CEO Dennis “I’m Sorry” Muilenburg apologized before the Senate Commerce Committee on Capitol Hill.
The Federal Reserve meets today and tomorrow, and odds makers are saying there is a 90% chance a rate cut will occur. While some feel we are in a late stage economic cycle and the Fed is cutting rates to stem a possible recession Chairman Powell has insisted that the latest round of cuts is a mid-cycle adjustment and not the start of an economic slowdown. Likewise, he's affirmed that renewed Fed purchases of bonds are not a new round of quantitative easing, but rather an adjustment to correct a shortage of bank reserves caused by a regulatory issue. Look for an announcement tomorrow afternoon which could show the Fed moving rates down to a range of 1.5% to 1.75%.
Since hitting a high of $239 per share back in August, processed veggie meat maker Beyond Meat has been butchered in trading action despite the company posting a 250% revenue increase and a first time ever profit. What is driving investors out of the stock yard, so to speak, is outfits like Goldman Sachs downgrading the stock out of fear over rising costs and the ending of a lockup period which allows early investors to sell shares and lock in gains. CEO Ethan “Red” Brown expressed optimism with the company’s first ever profit but getting early investors to not stampede in the face of Wall Street downgrades is like making a freight train turn down a dirt road.
The scouts have our fall court of honor tonight and go on a hike this weekend to Diablo Lake. Hats off to Fremont Dock Company which donated a storage space to Troop 100. Being such can active troop we have need of space to keep dutch ovens, tents and stoves and with all the growth in Seattle it is getting harder to find space.