Stocks closed the day mixed. The Dow reversed from an early rally and closed off 26 points at 25,887 on lighter trading volume while the NASDAQ rose 9 points and heavy trading volume to end the day at 7,724. Tech and chip stocks continue to lead the way higher. The back and forth action in markets stems from negotiations between China and the US regarding trade.
Shares of Boeing were up slightly as the crash investigation continues to unfold. The latest speculation is that Boeing and the FAA might have gotten too cozy over the years as the FAA seems to have not been up to the task of the rapid rise in and demand for global air travel. There is talk that the FAA turned to Boeing for help and this set up conflicts of interest which may have contributed to an approval process that was not as good as it could have been. Meanwhile the latest Pentagon budget is out, and the news is good for Boeing as the Air Force is cutting back on F-35 orders and ramping up order of F-15s from Boeing. The F-15’s apparently are destined to Air National Guard units where the F-35 is considered overkill.
With tax season upon us and filers submitting personal tax returns under the new law, one ripple affect seems to be that rich folks are having to pay more due to limitations on state and local tax deductions against Federal returns. This is causing people to increase ownership in tax free municipal bonds issued by states and local gubment. Adding to this is that muni bond inventories are down as new bond issues are down which is ensuring that any new bonds being issued are experiencing plenty of demand from willing buyers.