Breaking, broke and break”. In “breaking” news President Trump “broke” with Republicans and sided with Democrats to “break” the budget impasse and fund the Hurricane Harvey relief efforts while moving the debt cap back 3 months. The news kicked the markets higher and the Dow gained 54 points on lighter trading volume to close at 21,807. Banks rebounded as did tech stocks while airlines continue to trade under pressure thanks to price wars and storm related flight delays.
Boeing upped its commercial aircraft demand estimates for China saying that over the next 20 years they forecast $1.1 trillion in sales to a country where the middle class is growing. Randy Tinseth, VP of marketing said the “Lazy B” expects to sell 7,240 planes over a 20 year period which is up 6.3% from the prior year’s estimate. Randy also said that 75% of demand will be for single aisle jets while the bulk of the remaining demand will be for the wide body freighter market.
US automakers reported sales of cars and light trucks at a 16.1 million annual rate in August, well below the consensus expected 16.6 million pace. Without Hurricane Harvey sales would have been at a 16.3 million pace. After Harvey and Irma pass the gurus are expecting a temporary surge in sales later this year, both due to pent up demand and the replacement of destroyed and water logged vehicles.