The markets jumped today on earnings and trade talks with China. At the close the Dow was up 434.90 at 25014.86. Trading volume was up significantly indicating that buy buyers are buying big. McDonald’s earnings were good while AT&T had disappointing results. Tesla reports after the closing bell.
Shares of Boeing broke out to the upside after the company reported blowout earnings. For the first time in its 102-year history the Busy B cracked the $100 billion sales barrier. Adding icing to the cake the company gave positive forward guidance. Revenue was up a whopping 14% (versus a normal trend line of 4%) and net income gained 8%.
Apple reported earnings yesterday and while revenue fell 5% net profits were up better than expected with a 7% increase. CEO Tim “it just works” Cook said the company saw good service revenue which offset a 27% drop in sales to China. He also cited that trade tensions with China were easing. Apple’s cash pile grew 3% and now sits at $245 billion which is enough to purchase several small countries.
US steel stocks jumped after Brazilian miner Vale said it will cut its production 10% and spend $1.3 billion to decommission 19 dams like the one that failed last week killing scores of people. Vale faces fines and criminal charges for the dam failure. The company has a market cap of about $65 billion and made a name for itself selling ore to China. In the US, ore miner and taconite provider Cleveland Cliffs shot higher as did US Steel, Nucor and Steel Dynamics.