Dow rose 143, advancers over decliners about 2-1 & NAZ gained 53. The MLP index was steady in the 251s & the REIT index added 2+ to the 264s & up 16% from the Christmas eve low. Junk bond funds went up & Treasuries were purchased ahead of Trump's speech tonight. Oil fluctuated in the 54s & gold was flattish at 1319.
AMJ (Alerian MLP Index tracking fund
Stocks rise before State of the Union
For investors cheering this earnings season, there could be trouble ahead. As Q4 results roll in, the S&P 500 is poised to post an average earnings growth rate of 12.4%, the 5th straight qtr of double-digit growth. These results have boosted the stock market, with the S&P 500 enjoying its best Jan in more than 30 years. While companies are reporting great numbers, their outlooks are falling short & that's caused analysts to rapidly slash their earnings expectations for the current qtr. Expectations for earnings growth for Q1 have just turned negative with profits expected to fall on average by 0.8%. That would mark the first year-over-year decline in earnings since Q2-2016. At the end of Sep, analysts expected Q1 profits to increase by 6.7%. This earnings season may seem upbeat so far on the surface. Many major companies are scoring big rallies on beats. In terms of price action, it's even shaping up to be the best earnings season in nine years. But the bar was set very low. 6 of the 11 sectors in the S&P 500 are expected to report a decrease in earnings for the first qtr, with the information technology sector projected to decline the most by 8.9%.
Profits in the first quarter are now expected to decline as company outlooks fall short
Boeing (BA), a Dow stock, shares are soaring to begin 2019, rising to an all-time high a few days after the company reported booming Q4 results & gave shareholders even greater confidence in the company's prospects in China's nearly insatiable aviation market. The aerospace giant is ramping production to fulfill its backlog of 5900 aircraft orders, which "equates to about seven years of production at current rates," CEO Dennis Muilenburg said. BA broke its airplane production record last year, churning out 806. But it expects to shatter that record by nearly triple digits & produce at least 895 next year. The company aims to produce airplanes at a blistering rate of one every 9 hours & 45 mins in 2019. The stock hit a record $394 yesterday. Shares are off to a red-hot start this year, up over 21%. BA's stock was climbing steadily last year until the last 3 months more than cut the company's year-to-date gains in ½. Fears of a slowing global economy led by China helped knock stocks all down. But BA still finished 2018 up 9.4%. Sales to China plays a key role in its future & Muilenburg said he sees "strong demand in China overall." BA estimates China makes up about 18% of the world's demand for new commercial airplanes over the next 2 decades. That translates to about 7700 airplanes solely for Chinese customers. "We're seeing passenger growth [in China] that exceeds the overall market growth around the world," Muilenburg added. The stock rose 8 to 405 ( a new record).
club.ino.com/trend/analysis/stock/BA?a_aid=CD3289&a_bid=6ae5b6f7
Boeing shares hit another record, bucking China slowdown concerns: 'Things are just heating up'
Economic news is light today. There is not much for traders do ahead ahead of Trump's speech tonight. Despite numerous dark clouds out there, buyers keep bidding up stock prices. Hard to believe, but the Dow is only 1400 below its record made last Oct.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund
| CL=F | Crude Oil | 54.02 | -0.54 | -1.0% |
| GC=F | Gold | 1,318.70 | -0.60 | -0.1% |
Stocks rose on Tuesday, ahead of Pres Trump delivering the State of the Union address. Trump's
speech tonight comes a week later than
scheduled after House Speaker Nancy Pelosi yanked the original
invitation during their showdown over the gov shutdown. On the eve of the State of the Union address, Pres Trump & Fed Chairman Jerome Powell dined at the White House. The
meeting covered a variety of economic topics, the Fed said, but did not delve into expectations of future monetary policy
decisions. Yesterday after the closing bell, Google-parent Alphabet (GOOG) wrapped up FAANG earnings by posting a better-than-expected quarterly revenue & profit.
However, its shares fell before the bell yesterday as investors worried
about its sharply higher spending, which hit margins. In
Asia today, markets in Hong Kong & China are closed for the
Lunar New Year holiday. Japan's Nikkei ended 0.2% lower. In Europe, London's FTSE added 1.2%, Germany's DAX gained 1% & France's CAC was up 0.9%.
Stocks rise before State of the Union
On the eve of the State of the Union address, Pres Trump & Fed Chairman Jerome Powell dined at the White House. It
was their first meeting after months in which Trump lambasted the
central bank for raising interest rates &, in the view of the pres,
endangering the economy's growth. Treasury Secretary Steven Mnuchin & Vice chair Richard Clarida were also at the dinner. The
hour-&-a-half steak dinner, a possible opportunity for the 2 men to
reset their relationship, covered a variety of economic topics, the Fed
said, but did not delve into expectations of future
monetary policy decisions. Last
week, the Fed said that further rate hikes were on hold for now, a
step Powell & others said was based on recent economic developments,
not the Trump's public tirades against the Fed. Recent presidents have largely steered clear of directly criticizing the Fed. Powell's comments in this setting were consistent with his remarks at his press conference of last week. He did not discuss his expectations for monetary
policy, except to stress that the path of policy will depend entirely on
incoming economic information & what that means for the outlook. Powell
said that he & his colleagues on the FOMC will set monetary policy in
order to support maximum employment & stable prices & will make
those decisions based solely on careful, objective & non-political
analysis.
Fed's Powell, Trump discuss economy over steak dinner
For investors cheering this earnings season, there could be trouble ahead. As Q4 results roll in, the S&P 500 is poised to post an average earnings growth rate of 12.4%, the 5th straight qtr of double-digit growth. These results have boosted the stock market, with the S&P 500 enjoying its best Jan in more than 30 years. While companies are reporting great numbers, their outlooks are falling short & that's caused analysts to rapidly slash their earnings expectations for the current qtr. Expectations for earnings growth for Q1 have just turned negative with profits expected to fall on average by 0.8%. That would mark the first year-over-year decline in earnings since Q2-2016. At the end of Sep, analysts expected Q1 profits to increase by 6.7%. This earnings season may seem upbeat so far on the surface. Many major companies are scoring big rallies on beats. In terms of price action, it's even shaping up to be the best earnings season in nine years. But the bar was set very low. 6 of the 11 sectors in the S&P 500 are expected to report a decrease in earnings for the first qtr, with the information technology sector projected to decline the most by 8.9%.
Profits in the first quarter are now expected to decline as company outlooks fall short
Boeing (BA), a Dow stock, shares are soaring to begin 2019, rising to an all-time high a few days after the company reported booming Q4 results & gave shareholders even greater confidence in the company's prospects in China's nearly insatiable aviation market. The aerospace giant is ramping production to fulfill its backlog of 5900 aircraft orders, which "equates to about seven years of production at current rates," CEO Dennis Muilenburg said. BA broke its airplane production record last year, churning out 806. But it expects to shatter that record by nearly triple digits & produce at least 895 next year. The company aims to produce airplanes at a blistering rate of one every 9 hours & 45 mins in 2019. The stock hit a record $394 yesterday. Shares are off to a red-hot start this year, up over 21%. BA's stock was climbing steadily last year until the last 3 months more than cut the company's year-to-date gains in ½. Fears of a slowing global economy led by China helped knock stocks all down. But BA still finished 2018 up 9.4%. Sales to China plays a key role in its future & Muilenburg said he sees "strong demand in China overall." BA estimates China makes up about 18% of the world's demand for new commercial airplanes over the next 2 decades. That translates to about 7700 airplanes solely for Chinese customers. "We're seeing passenger growth [in China] that exceeds the overall market growth around the world," Muilenburg added. The stock rose 8 to 405 ( a new record).
club.ino.com/trend/analysis/stock/BA?a_aid=CD3289&a_bid=6ae5b6f7
Boeing shares hit another record, bucking China slowdown concerns: 'Things are just heating up'
Economic news is light today. There is not much for traders do ahead ahead of Trump's speech tonight. Despite numerous dark clouds out there, buyers keep bidding up stock prices. Hard to believe, but the Dow is only 1400 below its record made last Oct.
Dow Jones Industrials
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