The Dow raced ahead and cracked the 26,000 barrier today before gubment shutdown concerns caused a late reversal. At the close the Dow finished down 10 points to 25,792 on heavy trading volume. Earnings reports so far a mostly above estimates and are showing good revenue growth in addition to bottom line profits.
Citigroup reported better than expected earnings with revenue up 7% and net income up 16%. The company said it will use money from lower tax rates to boost and equalize pay throughout its US, UK and German operations. Banks today were generally higher because on the political front, several Democrats have joined Republicans to push for changes to Dodd-Frank laws which would benefit smaller banks by upping the systemic asset threshold from $50 billion to $250 billion.
General Electric reported a $6.2 billion after tax charge on it insurance portfolio and will contribute $15 billion over 7 years to shore up reserves. Word on the street is that in the spring GE will announce a major reorg effort to include a possible breakup or as we say in Ballard “a yard sale”. Shares were lower and GE plans to release earnings on the 24th of January.
Airbus in 2017 booked more orders than Boeing with 1,109 aircraft vs 912 for Boeing. On the delivery side however Boeing kicked out 763 planes vs. 718 for Airbus. Shares of both companies did well last year and the global business outlook remains fruitful.