Friends
It was another day of great earnings reports and shaky price action. Boeing lit up the morning with a stellar earnings report which helped the market post gains at the open. But that advance lasted no more than minutes before prices were tumbling once again into negative territory. By the afternoon, we had recovered the losses and the Dow was sporting a 100 point gain. But in the last hour of trading some of those gains dissipated.
By the close, the Dow Jones Industrial Average was up 59 points to finish the day at 24,083. The S&P 500 was up 4 points to close at 2,639. Gold was down $8 to trade at $1,324 per ounce, while oil was up $.23 to trade at $67.93 per barrel WTI.
As we have mentioned, earnings have been really good, but share price reaction has not been good. Remember, over the past 8 years, we saw periods where earnings were very challenged including one period that we defined as an “earnings recession”. Despite the earnings challenges, stocks continued to rise over those years. Why, you might ask? It was assumed that things would get better. Now, we find ourselves with record earnings and stocks struggling just to hold serve. Why, you might ask? Now it is assumed that things will get worse. Funny how that works, isn’t it?
Have a nice evening everyone.
