Stocks jumped at the bell as positive trade developments and news of monetary easing by the European Central Bank fueled the bull. At the close the Dow was up 353 points to 26,465. Trading volume was heavy.
Trade talks between the US and China took a step forward when President Trump tweeted that he would be meeting with President Xi at the upcoming G20 summit. Along with this news there are other signs of movement on the trade war front after China quietly dropped a WTO lawsuit against the European Union and the US asked for a 6-month suspension of an intellectual property theft lawsuit against China. Meanwhile China continues to suffer as supply lines are moving to places like Vietnam and Korea. Chinese networking giant Huawei noted that recent actions against it by the US is projected to reduce revenue by $30 billion and cause a drop in smart phone shipments of approx. 40 to 60%. Samsung, which used to be a dominant player in smart phone sales in China is shutting down its plant and ending its business in China as Huawei has taken over as the major smart phone selling in China. China is also dealing with massive protests in Hong Kong.
Day two of the Paris Airshow went very well for Boeing. (“Boeings” as my late and loving mother-in-law called it). Korea Air ordered 20 787 Dreamliners and in a surprise deal, International Airlines Group which partners with British Airlines as well as others signed a letter of intent to purchase 200 of the 737 Mad Max aircraft valued at roughly $24 billion smackers. When making the order announcement CEO Dennis “I’m Sorry” Muilenburg continued to apologize to everyone for everything.