The markets continue to trade neat all-time highs as earnings reports continue to come in better than expected. For last week the Dow declined about 0.3% and finished the trading week at 34,935. Today’s action in stocks saw the Dow trade in mixed fashion before a low volume selloff of 97 points to 34,838. Markets might get a boost from the infrastructure bill before congress which appears to be close to passage.
The Economy and Earnings
Shares of Boeing were higher last week after the company surprised gurus and posted its first profit since 2019. Rising 737 production and deliveries drove results. Deliveries in the quarter went from 20 a year ago to 79 sending overall revenue up 44% and net income climbing out of the hole by going from a loss of $4.70 per share to a positive 0.40 cents per share.
GDP for the quarter came in at 6.3% which was well shy of the expected 8.4%. Personal consumption, which is the biggest component of the GDP reading, came in better than expected with an increase of 11.8% however detractors to growth was gubment spending, exports, residential investment (housing) and manufacturing constraints caused by supply chain issues, inflation and tight labor.
The tech sector is alive and well as biggies Microsoft, Amazon and Facebook all reported robust earnings. Microsoft saws its revenue grow 21% while profits gained 49%. Amazon posted a sales gain of 27% while net income grew 47% and Faceplant’s revenue shot up 56% while bottom line results jumped 101%. Cloud revenues continue to lead the way as pandemic driven demand continues.
Oil stocks Exxon and Chevron also reported stellar numbers as demand and pricing rebounded sharply from 2020. Exxon saw its sales recover to prepandemic levels while net income surged 257% to a level not seen in years. Chevron saw similar numbers and going forward the gurus are expecting oil prices to remain above $70 per barrel as the domestic and global recovery continues.
Items of Interest
Be sure to contact us if you have questions about the Long Term Care Trust Act of Washington.
Starting Wednesday Bill is out until August 15th on a Scout canoe trip to Northern Tier in Ely, Minnesota. Troop 100 is sending 20 scouts and 6 adults on a 10 day trip. It should be a blast. While Bill is gone, John and Cleo will be holding down the fort and covering the phones. If you send Bill an email please include John and Cleo on the email thread so they can get back to you.