The Dow posted its 4th up day in a row as trade talks with China unexpectedly extended into another day. At the close the Dow was up 91 points at 23,879. Trading volume rose from prior day levels indicating that the big boys are easing back into the market.
Shares of Boeing jumped after the company said it delivered a record 806 aircraft in 2018 and retained the title of world’s biggest airplane maker for the 7th year in a row. For 2018 Boeing took in 893 orders and is seeing strong demand for 737 and twin isle aircraft. The company is also looking at introducing a replacement for the 757. The strong delivery report was confirmed by several Boeing suppliers like Spirit Air and GE who spent much of 2018 trying to keep up with Boeing’s delivery schedule.
Lumber prices continue to trade lower. The Random Lengths Framing Lumber Index fell $3 to $329 per thousand. Buyers were on the sidelines and some were out of the office apparently on vacation. Random Lengths also reported on an emerging trend whereby Canadian lumber companies are buying US sawmills. The latest examples are Canfor buying Elliot Sawmilling Co. in South Carolina (South Kakalacky) and Tolko Industries doing a joint venture with Southeastern Timber Products in Mississippi. It used to be that Canada’s corporate tax was approx. 25% lower than the US rate but with tax reform there is more parity and fewer barriers for Canadian firms to expand into the US.
Oil prices surged about 5% as OPEC and Russian production cuts come into effect. WTI crude traded back over the $50 mark and closed today at $52.06.
Amazon CEO Jeff Bezos and MacKenzie Bezos, his beautiful and only wife, are getting a divorce after 25 years. They married one year before he started Amazon. If she gets half the $137 billion they have as assets, she will make the Queen of England look like a pauper.