The Federal Reserve meets today and tomorrow and gurus are expecting Chairman Powell to cut interest rates by a quarter point. At the close the Dow reversed higher and closed up 33 points 27,110. Trading volume was lower and IBD still has markets in rally mode.
Bloomberg reports that economic data out of China hit a 17-year low as industrial output slipped from 4.8% to 4.4% and came in well below expectations calling for a reading of 5.2%. The lingering trade war with the US and a rising tide of “foreign hostility” toward global Chinese investment efforts are adding strain to the CCP’s efforts to keep things humming along. The South China Morning Post had a recent article about the rise of “foreign hostility” against efforts by Chinese companies to purchase assets in Europe, Africa and the US. Meanwhile CPA reported that Stanley Black & Decker was moving its Craftsman Tool production out of China and back to a new automated facility in Fort Worth, TX.
Oil ministers in Saudi Arabia said that within a few weeks they expect oil production to be restored to 70% of normal. This news sent oil prices down as WTI crude traded at $59.51 per barrel down about 6% after popping 12% higher the day before. Meanwhile the UN Security Council is investigating the drone incident to determine who is responsible for the attacks and once that is done will move forward in a “responsible manner”.
FAA head Stephen Dickson (not related to Seahawk punter Michael Dickson) will be in Seattle this week to meet with Boeing officials and fly the “newly configured” Boeing 737 Max in a simulator. Boeing hopes to conduct a key certification test flight but, as of yet, there is no hard date for that hop. Meanwhile 737 Max planes continue to pile up at the airport in Moses Lake.