Stocks today started off on a tepid note but when amateur hour ended, equities started to climb and by 11 am PST they were moving up big on heavy volume. Telecom stocks like AT&T were leading the way as were the transportation related stocks. At the close the Dow was up 297 at 19,549 on heavy trade. The transports moving higher is usually a sign that stronger economic activity is in the cards.
Shares of Boeing were higher today despite a tweet from President Elect Trump that the costs for a new version of Air Force One was too high and the contract should be canceled. Talk about a bird strike! One Boeing machinist was quoted in the Seattle paper as saying that while he had supported Trump in the election he wished he would stop tweeting. I guess instead of a commander in chief or “CIC” we now have a tweeter in chief or “TIC”.
Oil prices moved off a bit as WTI crude fell 1.9% to $49.90 a barrel. One big winner of the OPEC oil cut deal is Norway.
Gold rose slightly gaining $5.50 an ounce to $1,175. The Italian gubment is moving to take a 40% stake in Banca Monte dei Paschi di Siena after the failed referendum which put the bank in a desperate situation. The move was done without approval from Brussels but it is hoped that other investors will follow suit and help the bank raise enough capital to stay alive and prevent a domino effect within the Italian banking system.