Your Wednesday Market Blip 10/17/18

Your Wednesday Market Blip 10/17/18

The Dow opened 300 points lower but then reversed and went green before a late selloff pushed the Dow to a closing loss of 91 points to 25,706. Trading volume fell. Notes from the latest Federal Reserve meeting hinted at more rate hikes to come.
United Airlines reported better than expected earnings. Revenue was up 10% as airplanes were packed. Net income gained 36% thanks to the company containing rising fuel costs.
Netflix reported sales and profits well above expectations thanks to subscriber growth that was so strong it shocked the gurus. Revenue for the quarter was up 34% and net income jumped 207%. Subscriber growth came in at 1,090,000 for the quarter which was much better than the expected 674,000. Analysts upped their share target prices to the $440 range and shares rose in sympathy with this sentiment. Some gurus, while happy with the report are worried about how much money Netflix is spending on content and technology. The company noted that it was planning on building a major movie production facility in New Mexico which was a bit of a blow to Hollywood since, as we all know, they are the center of the universe. CEO Reed Hastings is focused on growing the company into a global franchise and hopes to have operations in Europe, Asia and everywhere in between. He is also looking for undiscovered talent outside the normal channels. It looks like disruption is coming to Hollywood!
This place is the pits! A new hotel is being built in China might prove to be as unique and dazzling as the Burj Al Arab Jumeirah in Dubai and the Marina Bay Sands in Singapore. This new hotel is being built in an old quarry below ground. It’s like the old “party pit” in Monroe but perhaps a bit more expensive. Check out a video of it on our Facebook page.
Reuters is reporting that US Steel and the United Steelworkers Union are close to a deal that will give US Steel’s 16,000 belted blue color workforce a 14% pay increase. The deal reflects the fruits of steel tariffs that were first put in place by President Obama in 2016 and strengthened under “The Donald”. Steel companies in the US are investing heavily to ramp up, restart and refurbish facilities and are now starting to “share the pie” with the workers.