Earnings reports continue to flow in like water over a dam and markets are mixed as a result, but the overall tone continues to be positive. Tesla reports earnings (or lack thereof) later today. The Dow closed the day lower by 79 points on heavy volume to finish at 27,269. The S&P 500 and the NASDAQ were higher.
Boeing reported its numbers and as expected they were uglier than 10 miles of bad road on a Montana ranch. Revenue for the quarter was down 35% as aircraft deliveries fell from 190 to 90. The company also posted a loss due to the $4.9 billion charge but the gurus crunched the numbers and figured that on an ongoing operating basis they were better than expected. Going forward CEO Denis “I Apologize” Muilenburg said they expect 737 Max deliveries to begin sometime in the 4th quarter and that by late 2020 they plan on having the production rate back up to 57 planes per month. After the report came out shares fell about 3%. The company is not giving forward guidance yet but said it will once they get more clarity on the 737 Max situation.
Caterpillar also reported earnings and their numbers were not as good as hoped with a revenue gain of 3% and a profit decline of 5%. Sales by segment were as follows: Construction Industries +5%; Resource Industries +11%; Energy & Transportation -4%; Machinery, Energy & Transportation +3%. Equipment sales in North America were good while Asian sales were off. Shares were lower after the company issued tepid forward guidance thanks to slowing global demand.