Stocks rallied to new highs today as big hedge fund investors continue to hold back the cash for fear of getting in and then getting whacked. The pressure on the “hedgies” is getting intense. At the close the Dow was higher by 59 points to 18,636 on higher volume.
Boeing was a leading stock for the Dow as the Pentagon approved $2.8 billion in production contracts for 19 more KC-46 Air Force tankers. The KC-46 is based on a 767 platform and is the first tanker redesign in decades. Boeing may eventually build up to 180 of these tankers for the Air Force.
In economic news the NAHB housing index showed a homebuilder sentiment rise of 2 points while the Empire State Manufacturing survey index was off by five points to -4.2.
Markets in China showed some strength as China announced it would start a cross-border investment program that it has been anticipated by investors for over a year. The Shanghai-Hong Kong connect program will open up opportunities for investors in China. Meanwhile Japanese economic data continues to be flat while Chinese data continues to indicate a “falling short of economic growth targets”. Both sets of data could lead to more stimulus.
US oil prices moved higher thanks to chatter about possible production cuts in Saudi Arabia and Russia. Only time will tell if this is legit. WTI crude closed the day up over 3% at $45.88 per barrel.