Your Wednesday Blip 3/31/21

Your Wednesday Blip 3/31/21

As investors begin to analyze the infrastructure bill announced today by President Biden and headed to Congress for debate, the markets closed mixed with the NASDAQ higher while the Dow fell 85 points to 32,981. Trading volume was up and current market indicators from BTS and IBD are positive.
Steel stocks bolted higher today after Cleveland Cliffs issued upside guidance for its earnings report set to be given in June. Cliffs upped its EBITDA by 30% over what the gurus had been forecasting citing strength in both pricing and demand for steel along with a Middletown, Ohio plant that finished up its maintenance period in 15 days as opposed to the 45 days it had originally planned on. Shares of Cliffs jumped 15% and other steel makers to include Nucor and US Steel joined the rally as traders “got on board the steel train”.
The Chicago MNI Business Barometer rose to 66.3 in March, its highest level since July 2018. Production rose the 10 points to 72.0 and the orders backlog fell which is good news from a growth perspective given the bottlenecks plaguing the economy. New orders rose to 62.3, slightly shy of its one-year high in January. Supplier deliveries rose to 79.0, suggesting delivery delays are still a big problem. Inventories are up and reasons for this are that companies are anticipating longer supplier lead times and logistical challenges in getting materials and so are responding by holding more inventory.
Alaska Air has firmed up 23 orders for the Boeing 737-9 with an option to purchase 15 more at a later date. This news injects further confidence for Boeing as it struggles to overcome woes. The order is worth $3 billion at list prices and brings Alaska’s 737 order book to 120 airplanes.