Markets were mixed again today on heavy volume as traders await Apple’s earnings due out after the close today. Apple is expected to post its first revenue decline in over a decade. At the close the Dow was up 13 at 17,990. The tech heavy NASDAQ was lower in anticipation of earnings from Apple, Tweeter and some other techs.
Class 8 truck maker Paccar reported earnings for the first quarter of 2016 and according to CEO Ron Armstrong, the numbers were “good”. Such a profound and eloquent summarization of a company’s results is a breath of fresh diesel. Paccar’s Kenworth and Peterbuilt sales in North America are poised for their third best year over the past decade while in Europe the DAF brand is gaining market share and is expected to have its best year since 2008. The company posted revenues of $4.3 billion and, had it not been for a $942 million non-recurring charge for a European Commission investigation, profits would have been $348 million. Over the past 5 years Paccar has invested over $3 billion in new plants and products that are more efficient. Shares were up on a positive outlook.
In a sign of the times the US durable goods orders came in with a 0.8% increase vs expectations calling for a gain of 1.8%. In other words “ok” but not “great”. The news disappointed the gurus and sparked a selloff in the US dollar as the report indicates there is less pressure on the Feds to raise interest rates. Gold reacted positively to the news gaining $3.70 an ounce to $1,243. Oil shot higher as well gaining 3.28% to $44 per barrel for WTI crude. Oil was also given an assist from reports showing the demand side of the equation was steady despite an uptick in stockpiles.