Your Wednesday Market Blip 2/8/17

Your Wednesday Market Blip 2/8/17

Stocks were mixed today as the Dow fell while the NASDAQ rose. The Dow closed down about 36 points to 20,054 on heavy trading volume. The BTS high yield bond indicator is currently positive on markets but sees danger if the US 10 year treasury yield spikes to 2.6%. The current yield on the 10 year is 2.36%.

Shares of Seattle based Alaska Air with CFO (Chief Football Officer) Russell Wilson, hit a new high after an earnings report in which both top and bottom lines exceeded estimates. Revenue was up 11%. Net income gained 7%. Traffic was up 13.1% and the company grew its capacity by 10%. Alaska also raised its common stock dividend and for now the Eskimo painted on the tail fin has a smile on his face.

According to the YPO Global Pulse survey, confidence among US CEO’s just had its largest quarterly gain in history climbing 4.2 points to 64.6 which is just shy of the record level hit back in 2012. Reasons behind the optimism is White House talk of deregulation, tax reform and infrastructure spending. The executive order requiring a 1 for 2 replacement ratio for new regulations mirrors the successful program Canada did back in 2012 when they adopted a 1 for 1 policy in which each new reg. must be offset by getting rid of an old reg. Maybe that’s why Canadians are so happy.

Gold prices continue to move higher as political uncertainty in Europe (France in particular) is sparking a safe haven trade. Gold finished up $5.60 an ounce to $1,241.

I will be on vacation at a scout camp in the mountains starting tomorrow and back on the 20th. Cleo will be holding down the fort. If an emergency arises please call KMS direct at 206-441-2885 and ask for the wonderful Aileen Krohn.