Stocks were mixed yet with an upward bias on Friday the 13th as bank earnings reports were hitting the news channels and shedding light on the economy. Overall it seems the markets like what is being reported. At the close the Dow was off 5 points to 19,885. The NASDAQ hit a new high thanks to gains in FaceBook and Amazon. Trading volume was lower on both exchanges. For the week the Dow ended flatter than a pancake on I-5.
Boeing announced an order for up to 205 jets worth about $22 billion from SpiceJet, the Indian budget carrier. SpiceJet flies an all-Boeing fleet and this deal includes 100 of the new 737 Max 8 jets which seem to be popular since they have higher seating capacity and are cheaper to operate. Airlines are looking to add per plane seating capacity since airports like Sea-Tac are faced with rising traffic and limited gate space. Sea-Tac is currently looking to add 30 gates to accommodate growth so airplanes that hold more people without taking up tarmac space are favored.
Big banks reported earnings today and the numbers were good. Bank of America posted net income above estimates rising 48% higher than this time last year thanks to cost cutting and solid results in loans and credit cards coupled with rising interest rates. Wells Fargo missed both earnings and revenue estimates as new management takes over. JP Morgan Chase meanwhile beat both top and bottom line estimates with record growth in its consumer business as deposits and core loan balances grew by double digits. JP also topped $1 trillion in merchant processing bringing a brief smile to Jamie Dimon’s face. All three banks expressed confidence going forward as higher interest rates will help drive profit margins while a strong economy is expected to drive revenue growth. Bank shares were generally higher on the news and have been the darlings of the Trump rally.