Dow dropped 299 (but off lows at the opening), decliners over advancers better than 3-1 & NAZ pulled back 113. The MLP index was off 2 to the 147s & the REIT index declined 3+ to the 377s. Junk bond funds slid lower & Treasuries were bid higher. Oil climbed to 53 & gold continued to be sold, falling 5 to 1845.
AMJ (Alerian MLP index tracking fund)
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Boeing (BA), a Dow stock, took a hefty $6.5B charge on its all-new 777X jetliner as it posted a record annual loss due to the
coronavirus pandemic & the aftermath of a 2-year safety crisis over its 737 MAX. The
coronavirus crisis has exacerbated a drop in demand for the industry's
largest jetliners, with airline customers shunning deliveries of planes
due to international travel restrictions, hurting cash flow at the US planemaker. BA expects the 777X, a larger version
of the 777 mini-jumbo, to enter service by late 2023, delaying the jet's
entry for the 3rd time, due to tougher certification requirements
after the 737 MAX safety crisis & plummeting demand. The company has been developing the widebody jet with the goal of releasing it in 2022, already 2 years later than planned. "2020
was a year of profound societal and global disruption which
significantly constrained our industry," CEO Dave
Calhoun said. BA expects to resume handing over 787s to customers at
some point in 2021, though deliveries were not expected to recover to
2019 levels until at least 2024. BA
reaffirmed plans to hit a sharply-reduced production rate of five 787s per
month in Mar, when it will consolidate production at its South
Carolina factory. The net loss rose to $8.4B in Q4 from $1B a year earlier, taking its full-year
loss to almost $12B. Revenue fell 15% to $15.30B in the qtr. The stock sank 5.17.
If you would like to learn more about BA, click on this link:
club.ino.com/trend/analysis/stock/BA?a_aid=CD3289&a_bid=6ae5b6f7
Boeing to delay 777X again as it posts record annual loss
As Ms of Americans wait their turn to receive the Covid-19 vaccine, many say they won't be rushing back to retailers' stores to shop for clothes & shoes after the immunization, according to a new survey. 40% of consumers say they plan to shop for apparel in stores either the same amount or less after being vaccinated, according to a study released by First Insight. The predictive consumer analytics firm polled more than 1000 people online on Jan 13 about their purchasing plans. 44% of respondents said they'll visit stores the same or less to buy footwear post-vaccination, while 45% said they would visit stores the same or less for beauty products, 41% said this about luxury items & 43% for electronics. The lesson here is that while it might be widely believed that Americans will rush back to some level of normality after getting a vaccination, it doesn't look like that’s going to happen soon, said First Insight founder & CEO Greg Petro. “Number one, not everyone feels comfortable getting vaccinated,” Petro said. “Number two, most people are not going to rush into stores after getting vaccinated. ... It’s going to take a long time for people to get really comfortable and reacclimated to the way the world was. And so you can you can count on 2021 looking very similar to 2020.” About 1/3 of respondents said they are either unsure about receiving the Covid-19 vaccine or will not get it. More than ½, or 53%, of respondents said they plan to continue to wear a face mask in stores after being vaccinated. 66% of respondents commented that continued spikes in Covid-19 across the country are deterring them from shopping in stores.
Americans not rushing to stores to shop after Covid vaccine, survey finds
Business orders for durable goods such as tools, appliances & new cars rose in Dec for the 8th month in a row, signaling that companies are preparing for a stronger US economic rebound later in the new year. The increase in orders last month was below expectations, but the drag mainly stemmed from a slump in demand for new airplanes since the onset of the pandemic. The forecast called for a 0.8% increase. If transportation is excluded, new orders rose a solid 0.6%. Regular ups & downs in transportation often exaggerate monthly changes in the level of demand. Orders for new cars & trucks increased 1.4% in the final month of 2020. Auto sales have held up pretty well during the pandemic as car buyers took advantage of ultra-low rates to lock in good deals. Orders for airplanes were negative again, as they have been almost the entire year. Few airlines are ordering new planes with so little travel going on during the coronavirus pandemic. Outside of transportation, business orders held steady. They rose for machinery, primary metals & fabricated-metal parts that are used in a wide array of industrial goods. The only other notable decline was in computers & related products. A key measure of business investment rose 0.6% last month, exceeding pre-crisis levels for the 3rd month in a row. These are known as core orders & exclude defense & transportation. Manufacturers are not only pumping out plenty of goods, they've increased investment in anticipation of strong sales in the months ahead, a good sign for the economy in 2021. Just don't expect a quick turnaround. It might take awhile still before vaccinations are widespread, the pandemic fades & the economy kicks into a higher gear.
Durable-goods orders and business investment climb for eighth month in a row
The report from BA was gloomy & the market is waiting hear hear later what the Fed has to say about the economy.
Dow Jones Industrials
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