Stocks continue to move higher with the Dow gaining 117 to close at 25,543. Trading volume was mixed.
Amazon and General Motors are rumored to be in negotiations to take a stake in electric pickup truck startup Rivian. Rivian hopes to have its “ET” on the road sometime in 2020 just about the time many gurus like Paul Krugman are predicting a recession. The truck was unveiled a few months ago and the company is promising a range of 400 miles and to be able to go from zero to 60 in 3 seconds with torque to spare. GM is planning on having a slew of electric vehicles by 2025 and an investment in Rivian might be a cheap way to accelerate that time schedule. The rumored deal gives Rivian a value of approx. $1 billion smackers.
Supply chain and China trade issues continue to hamper deliveries of global commercial aircraft. In January Boeing delivered 46 total aircraft of which only 34 were 737’s. The company fell short of its 737 delivery target by 18 planes. January orders for new jets showed 43 bookings including 19 military P-8 Poseidon surveillance planes which the navy (squids) will most likely use to spy on the army (GI Joe) prior to this year’s Army Navy game. Meanwhile across the pond Airbus delivered only 39 aircraft in January. Qantas Airlines canceled its remaining order for eight A380s leaving Airbus with a net negative order count of 13 for the month of January. The Qantas cancelation most likely means that the struggling Airbus superjumbo program is close to termination. Maybe they can sell them to serve as funky hotels in Sri Lanka or perhaps Jeff Bezos will buy one just because he can.