Markets edge lower as more earnings are reported

Dow inched up 9 after significant selling in the AM, advancers modestly ahead of decliners & NAZ was off 20.  The MLP index was flattish in the 231s & the REIT index ended close to 395.  Junk bond funds continued lower & Treasuries had only limited buying.  Oil was up chump change, but still above 80, & gold added 7 to 1943 (more on both below).

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AT&T (T) shares jumped after the carrier reported Q4 subscriber growth that exceeded estimates, shrugging off its rivals' lower pricing strategies.  The US. phone service provider added 217M total subscribers across all of its divisions for Q4, beating estimates of 215%.  New phone subscribers specifically, however, missed expectations, coming in at 656K net adds, versus an estimate of 678K.  The company has continued to discount the idea that the phone carrier industry is in a pricing war.  “I don’t submit to the view that there’s a race to the bottom going on. I actually think the industry is doing quite well,” CEO John Stankey said.  Adjusted EPS was 61¢ versus an expected 57¢ & total revenue was $31.34B versus an expected $31.38B.  The company expects wireless service revenue growth of 4% in 2023, below expectations.  Stankey said it is staying “very conservative” as it heads into its new fiscal year & watches for recession as well as geopolitical disruption.  The stock was up 1.26.
If you would like to learn more about AT&T, click on this link:
club.ino.com/trend/analysis/stock/T_aid=CD3289&a_bid=6ae5b6f7

AT&T shares jump as subscriber growth tops analyst expectations

Boeing (BA), a Dow stock, posted a $663B loss for Q4 as supply chain issues weighed on results despite a rebound in aircraft sales & deliveries that drove up revenue.  Airlines & aircraft manufacturers have benefited from a sharp recovery in air travel, one of the most affected industries from the Covid pandemic.  But BA leaders have been hesitant to ramp up aircraft production until the supply chain has stabilized.  The company is producing 31 of its 86 it would raise what has been low production rate of the 787 Dreamliners to 5 each month toward the end of the year & to 10 per month in 2025 or 2026.   Deliveries of those wide-body planes had been paused for around 2 years until this summer due to production flaws.  For the full year, BA had a loss of $5B despite a 7% increase in revenue to $66.6B.  BA generated $3.1B in cash flow in Q4, higher than the forecast & $2.3B for the year, the most since 2018, before the 2nd of 2 fatal 737 Max crashes that sparked a years long crisis for the company.  Its commercial aircraft unit generated $9.2B in sales in Q4, up 94% from a year earlier as deliveries jumped, but it still produced a loss due to abnormal costs & other expenses such as research & development.  BA reiterated its expectation to generate $3-5B in free cash flow this year.  Q4 adjusted loss per share was $1.75 vs expected EPS of 26¢ & revenue was $19.98B vs $20.38B expected.  The stock rose 65¢,
If you would like to learn more about BA, click on this link:
club.ino.com/trend/analysis/stock/BA_aid=CD3289&a_bid=6ae5b6f7

Boeing posts quarterly loss as labor and supply strains overshadow jet demand

Sen Manchin introduced legislation that is aimed at eliminating a delay in adding new restrictions to the consumer tax credit for electric vehicles.  He took a shot at the Treasury Dept & its move to temporarily delay the stipulations regarding the manufacturing & sourcing of minerals for EV batteries.  "It is unacceptable that the U.S. Treasury has failed to issue updated guidance for the 30D electric vehicle tax credits and continues to make the full $7,500 credits available without meeting all of the clear requirements included in the Inflation Reduction Act," the senator said.  "The Treasury Department failed to meet the statutory deadline of December 31, 2022, to release guidance for the 30D credit and have created an opportunity to circumvent stringent supply chain requirements included in the IRA."  Manchin, the chair of the Senate Energy & Natural Resources Committee, said he had introduced the American Vehicle Security Act to direct the department to implement the 30D new vehicle tax credits for vehicles according to the law by requiring compliance with battery & battery material sourcing requirements as of Jan 1, 2023.  "The IRA is first-and-foremost an energy security bill, and the EV tax credits were designed to grow domestic manufacturing and reduce our reliance on foreign supply chains for the critical minerals needed to produce EV batteries," he continued, saying it is "shameful" that the US relies "so heavily on foreign suppliers, particularly China, for the batteries that power our electric vehicles."  Manchin added the country could not continue "down this path."

Manchin bill would pause EV tax credit payouts

Gold futures climbed to post a 5th session gain in a row.  Gold for Feb rose $7 (0.4%) to settle at $1942 an ounce, the highest most-active contract settlement since Apr.  Gold futures posted their 5th session climb in a row, the longest streak of gains since Aug.

Gold Futures Finish Higher, Up 5 Sessions In A Row

Oil futures post a slight gain, with US benchmark West Texas Intermediate prices holding above the key $80 level for a 5th consecutive session.  The modest move up for prices came after the Energy Information Administration reported a 500K-barrel weekly climb in US crude inventories.  US benchmark West Texas edged up by 2¢ to settle at $80.15 a barrel.

U.S. Oil Futures Hold Above $80 For A Fifth Consecutive Session

Once again, the bulls are having a difficult time making the case for higher stock prices.  Part of the reason is that the economy feels like it is in a recession.  Tomorrow the first official estimate for Q4 GDP will be reported before the stock markets open.

Dow Jones Industrials