Stocks were mixed for most of the day but then steel and aluminum trade concessions with Europe were announced and as a result the Dow shot higher in the waning moments of the day to close up 172 at 25,414. Trading volume was down for most of the day but closed higher thanks to the late surge.
AT&T reported earnings after the close yesterday and while the company beat earnings estimate it reported lower revenue (thanks to Direct TV) than expected sending shares to a 52 week low. Revenue was off 2% while net income was up 15%. Ma Bell is in the middle of a major transition in an effort to remake itself into a modern mobile media company where the goal is to offer customers calls, internet and movie content anywhere and anytime. As part of this “remodel”, AT&T is investing heavily on 5G technology as well as content in the form of sports, movies and TV shows. Going forward the company increased its cash flow and revenue guidance however Wall Street was skeptical and is putting the shares on hold for the time “Warner” being. Haha.
Boeing reported a 5% revenue gain and an increase in profits by 34% beating both top and bottom line estimates. During the quarter, 239 net orders were booked, and 194 commercial airplanes were delivered which was a 6% increase. The backlog grew by $488 billion and now stands at over 5,900 jets. The gurus however were not happy with forward guidance coupled with the $418 million write off related to the KC-46 tanker program which is now 2 years late in delivery. This frustration with the KC-46 is similar to Seattle residents who are upset that the city council just potentially wasted $52 million on street cars that apparently don’t fit the current tracks…but hey, I’m not bitter!