It was a record day and a record week for the Dow after the venerable index posted a closing gain of 64 points to 22,268 on heavier volume. For the week the Dow gained about 2.1% or roughly 468 points and appears to be breaking out from a two month trading range.
Shares of Boeing flew to a new high thanks to a convergence of events which include rising demand for wide body jets and defense spending in light of North Korea slinging missiles over Japan. Following the announcement of a Malaysian order to buy 10 more 787-9’s, Boeing CEO Dennis “The Menus” Muilenberg said “We see a significant wide body replacement wave coming in the next decade”. He also announced a production increase from 12 planes per month to 14 which will boost the bottom line since Boeing has recently broken even on the cost of the 787 development program. Every 787 from here on will be pure grease to the company’s bottom line.
Our Boy Scout troop sells Christmas trees each year for a fund raiser. We have found that even the hardest heart melts like ice cream when a 12 year old scout (aka Lunkhead) walks up and asks if you want to buy a tree. Then he carries the tree for you, cuts off the bottom and ties it to the roof of your car. People love it! Anyway in talking to our growers this year there is a shortage of trees thanks to strong demand meeting a planting shortfall that occurred back about 6 or so years ago. The growers are telling us not to increase orders (which has never happened before) and indicate the shortage, which started last year, could last about two more years. Price hikes are also in the 5% to 10% range. It will be interesting to see how this all plays out.