Stocks opened lower and then moved higher on…..you guessed it……politics and trade talks. At the close the Dow gained 162 points at 26,970. Trading volume was lower and IBD sent a cautionary note by listing markets as “rally under pressure”. The move higher today was broad with banks and tech shares doing well.
Shares of sneaker maker Nike made like lightning and bolted higher after reporting much better than expected earnings. Revenue jumped 7% and net income was 28% higher as gross margins came in a 45.7% vs last quarter at 44.4%. Sales in North America were up 3.6% while sales in China were higher by 22%. The results cheered Wall Street which sent shares to an all-time high because the results seemed to allay fears that the US China trade spat would hurt Nike’s business. Forward guidance was also strong as CEO Mark “Peter” Parker said the company’s digital initiative was delivering quality growth results.
Shares of Boeing were higher after Reuters reported the company had settled 11 of the 17 claims against it related to the Lion Air crash last year. In the settlement, each family will receive $1.2 million dollars. A total of 55 lawsuits against Boeing have been filed and by settling some of these cases there is a bit of clarity coming into the situation. There is still no date on when the FAA will allow the 737 Max to return to the skies.
Nat gas pipeline biggie Kinder Morgan announced today it had completed a major nat gas pipeline project in the Permian basin ahead of schedule. Capacity on the Gulf Coast Express Pipeline is completely sold out and this added capacity to ship gas from the Waha basin in the Permian will reduce the amount of flaring that goes on from existing oil wells.