Stocks began the day lower but rallied into the close after the Fed left interest rates unchanged. At the close the Dow was up 51 points to 18,051 on heavy volume. Energy companies were higher as oil prices continue to move up.
Apple reported what is being called a “horrible quarter”. Revenue fell for the first time in 13 years as the company posted a 13% decline in its top line and an 18% decline in its bottom line. Shares fell after CEO Tim Cook issued soft forward guidance. Shares now trade back at support levels but things might not be all bad since the company is working on the new iphone 7.
Boeing reported Q1 numbers that were a pleasant surprise as revenue was up 2% and net income grew about 11% before adjusting for charges related to the Air Force tanker contract and 747 cargo program. The revenue and cash flow numbers from Boeing were better than expected even though rival Airbus is enjoying a currency advantage because of the strong dollar. Boeing is aggressively building is services business and recently canceled a license agreement with Spirit AeroSystems to make aftermarket parts. Going forward, Boeing signaled confidence to the horde of gurus on the call. Shares were higher and helped add upside to the Dow. Boeing will turn 100 years old this July.
Financial news from around the globe is mixed. The latest consumer confidence numbers in Germany are turning higher which is great however data from the Bank of Greece showed that total bank deposits fell about 12.3% over the past year with no signs of abatement. This trend is a concern as some feel it is a slow motion bank run. Total Greek bank deposits are now estimated at 121.5 billion Euros. By way of comparison Bank of America alone has $1.2 trillion in deposits. Meanwhile in Venezuela, hyperinflation is the order of the day. Bloomberg reported that a 100 bolivar note, which is the largest denominated bill in the system, is now able to buy only a single cigarette at the local kiosk.
WTI oil continued to climb as did gold. Oil was up 3% to trade over $45 a barrel. Gold rose $3.90 an ounce to $1,247.