Markets finished the week with an uptick as shares of Boeing reversed higher from an earlier selloff coupled with a solid move higher by chip stocks. At the close the Dow was up 139 points at 25,849. Trading volume was very high due to the monthly options expiration period. For the week the Dow was up 1.58%.
Shares of Boeing ended the week on an uptick. The company is sticking to a plan to roll out 737 Max software updates and while it is not delivering planes it is still producing them at a clip of 52 planes per month. The black box is getting the rubber glove treatment in Paris but some debris from the crash site revealed the rear flaps might have been set to nose the plane over. Gurus are saying that if the problem with the most recent crash is similar to the Lion Air crash it will be easier to fix the problem. Meanwhile French President Macron is busy pitching Airbus planes to Ethiopia and other airliners that have 737 Max jets on order. Airbus has been in an order slump of late.
Chip stocks were higher after Broadcom reported earnings that easily beat bottom line estimates but missed slightly on top line revenues. The gurus liked the report and sent shares higher. Chips stocks have been benefiting from the electric car trend and the move by telecom companies toward 5G technology.
Tesla rolled out its Model Y last night and while Elon Musk says it’s the best car they have yet made, the event did not have the “zing” of prior rollouts and the market was underwhelmed sending shares lower. The Y will come out late next year according to plans, but we all know that “life is what happens after you have a plan”. People began making deposits on the car and the price range will be $39k to $60k depending on which variation you get. A supped-up Y can go from 0-60 in 3.5 seconds while a standard model will get there in just under 6. Not bad!