Stocks moved higher thanks to news of a temporary end to the gubment shutdown and from the Federal Reserve that they were considering easing the size of the balance sheet selloff of assets acquired during QE3. Representatives from China will also in be town next week to talk trade. The Dow closed up 183 points on heavy trading volume to finish at 24,737. For the week the Dow is up about 0.01% and for the year is ahead by 6%.
Starbucks coffee reported better than expected earnings yesterday sending shares higher. The company reported a 9% revenue gain and a 15% gain in net income. Same store sales rose 4% which was well ahead of guru expectations calling for a 2% increase. CEO Kevin “Cup o’ Joe” Johnson expresso’ed confidence in the sequential improvement in quarterly comp store sales saying it was the result of a company wide effort to improve the in-store experience.
Alaska Airlines beat top and bottom line estimates with a 6% revenue increase and a 6% gain in profits. The company said that while its load factor fell to 83.3% the “yield per passenger” rose 5.2%. The company rewarded shareholders with a 9% increase in the common stock dividend. Estimates for Alaska Air were raised as some gurus feel the bulk of the Virgin Atlantic integration is how in the rear-view mirror which allows them to focus on increased competition from Delta, United and Southwest.