Stocks were mixed today as the Dow was higher but the other indexes were lower. At the close the Dow gained 30 points to 18,199 on heavy trading. Expect more back and forth action in the days ahead.
Boeing reported earnings and the results were good enough to send shares higher. The gurus had expected a revenue drop of 8.6% and a profit gain of 3.2% on average but the company delivered a revenue drop of only 8% and a net income gain of 11% after onetime items. What was key about the report was Boeing's forward guidance which included a higher number of commercial airplane deliveries and benefits from the KC-46 Air Force tanker contracts signed last quarter.
Apple Computer posted numbers last night and the results were not enough to push shares higher because they missed estimates as revenue fell for the third quarter in a row despite getting an assist from the incredible exploding Samsung Galaxy 7. Revenue was off 9% and net income was lower by 15% in the quarter. Apple continues to amass huge amounts of cash with a bank account now pushing $237 billion (91% held outside the US) which is enough to make Apple the 14th richest country in the world.
The streets of Seattle now sport “community banana stands” (CBS) which give away bananas to Amazon employees and anyone else who happens to stroll by. The CBS’s are in front of Amazon’s new office buildings and are run by “banista’s”. The idea is to get employees to eat better plus it shows that America is truly the land of the free! The only protest to the idea was put up by the produce guy at the Whole Foods Market across the street.
Oil prices fell back below $50 per barrel for WTI crude as an inventory build came in higher than expected.