Your Monday Market Blip 6/19/17

Your Monday Market Blip 6/19/17

Markets continue to rally with the S&P and Dow hitting new highs despite falling energy prices. At the close the Dow was up 144 points to 21,528. Trading volume was ok but lower than Friday’s numbers which spiked up due to option expirations.

The Paris Airshow is underway this week and Boeing seems to be cleaning house so far. The company introduced the 737 MAX 10 to compete with the Airbus A321 neo and 10 customers immediately pig piled on it with 240 planes ordered at a total value of roughly $30 billion. The good folks in Wichita will be burning the midnight oil to keep up with demand. Additional orders have come in for the 787 as well with about 38 Dreamliner’s ordered. Airbus meanwhile has gotten orders for the A320 and A321 valued at roughly $12 billion.

Shares of Whole Paycheck (Whole Foods) continue to rise on speculation that Wal-Mart, Target or Kroger could make a counter bid for the company in an effort to keep Amazon at bay. Despite good traffic flows, shares of Costco continue to struggle because the gurus are thinking that Amazon’s move to buy Whole Foods removes the moat that has protected Costco from competition. Costco CEO Max Bulk is watching events with a wary eye.

Oil prices hit a fresh 7 month low as rising production in the US, Libya and Nigeria coupled with concerns over slowing demand growth in Asia are more than offsetting OPEC production cuts. WTI crude hit $44.16 per barrel off about 1.25%.

Eighteen scouts traveled to Leavenworth this past weekend and partook of mountain biking and golfing with several kids working to get the golf merit badge. We camped in a field along the Icicle River, saw a bear and visited a knife shop on the way home. I coined a new phrase “happier than a boy scout in a knife shop”.