John and I have appointments all afternoon so we sent the Blip early. As of 10:30 PST the Dow is up 136 points to 27,913. Positive trade comments from Trump’s economic advisor Larry Kudlow are driving the uptick. Trading volume so far today is running higher than this time yesterday. With a few hours of trading before markets close anything can happen but for now, we are sitting at record highs.
The elusive China trade deal is being chased by the energy sector as oil prices move higher on hopes of a phase one deal. WTI crude prices are up about 1.9% today resting just north of $57 per barrel. Natural gas prices are holding steady near $2.60 per mmbtus. A recent report by Hennessy Funds noted that US natural gas exports are rising and now average 4.1 billion cubic feet per day through June 2019. This is more than double the average from last year and gurus expect the trend to continue. Mexico is a major buyer of US nat gas as is Asia and parts of Europe. NPR had an article about how European chemical companies are now buying US natural gas for much less than they used to pay for North Sea gas which has be experiencing declining volumes anyway. Energy exports means money is coming into the US instead of the outflow to the Middle East that used to be the norm.
Shares of Boeing are up almost 6% this week as it looks like the 737 Max will return to service sometime in January. Meanwhile GE continues to look positive after it booked an order for $4 billion in Leap engines from CFM International for 50 Airbus 321 neo jets