Stocks retreated from record highs thanks to a bear market in oil. The Dow closed off 62 points to 21,467 on heavier trading volume.
At the Paris Airshow Boeing released its updated 20 year industry forecast for passenger and freight aircraft deliveries. The report calls for a near term period of slowing orders but over 20 years it expects orders to rise by 4% from the prior forecast. Boeing sees 41,030 plane deliveries up from 39,620. They expect the growth to come from single aisle cattle cars such as the 737 and the A320. Boeing also thinks the 747’s days as a passenger jet are numbered but that it still has a viable future as hauling freight.
Washington State insurance commissioner Mike Kreidler is faced with a dilemma. It is estimated that health insurance premiums in state individual markets will rise an average of 22% next year while some rural areas like Grays Harbor will have no insurance plans at all. Mike called this situation “extremely upsetting”. Meanwhile California is considering a single payer system but the price tag of $400 billion is “extremely upsetting” to the budget. The leadership of Washington’s hospitals are meeting in Chelan this weekend to discuss the issue and hopefully come up with some ideas. It is amazing what a good round of golf can do for problem solving…..or is that problem creating?
While insurance premiums go up, the price of oil is going down. WTI crude is off another 3% and now trades around $43 per barrel. The US rig count has grown for 22 weeks in a row and oil production in Libya and Nigeria are on the rise according to load statistics. These issues are all adding to the global glut and energy related stocks today are lower on the bleak outlook.