Stocks fell today on light volume as the volatility index is on the rise and mixed action seems to be the order of the day. Watching stocks today was like watching tossed salad with some up and some down. At the close the Dow was down 138 at 23,271.
Record orders are being placed at the Dubai Airshow. Boeing started it all with the surprise 787 order but then Airbus announced a huge $50 billion 430 plane order which is split between A320’s and A321s. Then Boeing followed that up with an order from for 175 737 Max jets from discount airliner FlyDubai. The gurus, or in this case “airheads” had expected a muted order book as the Middle East has been hit by low oil prices and tight budgets but the opposite has occurred and jets are selling like hotcakes. The buyers happen to be ultralow cost carriers from places like Norway, Chile, Hungary, Mexico etc who see that these new low cost jets are making airtravel an affordable option for ever increasing numbers of people.
With shares of GE now lower than dirt and the company putting up signs for a yard sale, Boeing has become the largest manufacturer by market cap in the United States. What is interesting about this is that GE had been the largest manufacturer by market cap in the US since 1980 and as recently as last year was 3X larger than Boeing. GE’s fall has been stunning. One client told me that on a recent trip to Boston you could see the new HQ being built while reading in the paper about layoffs.
Last night I took part in an Eagle Board of Review for a young man in our troop who has attained the highest rank in scouting. He spoke wistfully of his worst hiking trip where he took on the job of cooking dinner for his patrol. He said it was cold and rainy and he burned the dinner resulting in his patrol being hungry and miserable. He said he learned that by ignoring details you pay a price and he never made those mistakes again which resulted in future hikes that were fun and enjoyable regardless of the weather. By the way if you want to see pix of our last hike click here. This shows some of the character building Troop 100 is doing. Scroll down till you see the picture of the two kids by the river and click on that.