Dow gained 317 (near session highs), advancers over decliners 3-1 & NAZ went up 75. The MLP index gained 1+ to the 233s & the REIT index rose 5 to the 381. Junk bond funds inched higher & Treasuries continued to see limited buying. Oil remained in demand, up 1+ to the 74s, & gold added 5 to 1936 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Boeing (BA), a Dow stock, delivered 60 passenger jets in Jun as it rebounded from production issues,
boosting its total for H1 to 266 airplanes & marking a 23%
improvement from last year. Despite several production flaws that dogged deliveries, the planemaker appears on track to meet annual targets to
deliver at least 400 narrowbody 737s & 70 widebody 787 Dreamliners in
2023, having delivered 216 737s & 31 Dreamliners over the first 6
months of the year. BA delivered 48 of its bestselling 737 MAXs in Jun, an improvement from May when the company delivered 35 MAXs. It also delivered 4 767s - including the first KC-46 military
tanker that has been reworked since a fuel tank problem was discovered
in Mar - as well as 6 787 Dreamliners, one 777 freighter & one 737
that will be turned into a P-8 Poseidon maritime surveillance aircraft
for South Korea. The
delivery totals for Jun are its best since Mar, when the company
handed over 64 jets to customers before discovering a 737 bracket
installation error in Apr that curbed deliveries over Q2. However, it lags behind European rival Airbus,
which delivered 316 aircraft in H1,
including 72 jets in Jun. The Commercial Airplanes CEO Stan Deal said in Jun that the company
expects to ramp up MAX production from its current rate of 31 jets per
month to 38 "very soon," but will probably encounter supply chain
instability with every rate increase. BA won net orders for 288 planes last month when factoring in
cancelations & conversions, dominated by a monster order from Air
India for 190 MAXs, 20 Dreamliners & 10 mini-jumbo 777X jets. The
planemaker also booked a previously announced order for 39 Dreamliners
from new Saudi Arabian airline Riyadh Air. The stock rose 5.35.
If you would like to learn more about BA, click on this link:
club.ino.com/trend/analysis/stock/BA_aid=CD3289&a_bid=6aeoso5b6f7
Boeing deliveries climb in June as it rebounds from production issues
Bank of America (BAC),
the 2nd-largest US bank by assets, engaged in deceptive practices
that hurt hundreds of thousands of its customers in recent years, the Consumer Financial Protection Bureau said. The
bank charged multiple $35 overdraft fees for the same transaction,
failed to properly issue rewards to credit card users & signed up
customers for card accounts without their consent, the CFPB said. BA was ordered to pay a total of $150M in penalties to the CFPB & another regulator, the Office of
the Comptroller of the Currency. It also has to pay about $80.4M
to customers who were unfairly charged bogus fees, on top of the $23M it already paid to customers who were improperly denied card
awards. “These practices are illegal and undermine customer
trust,” CFPB Director Rohit Chopra said. “The CFPB will
be putting an end to these practices across the banking system.” BA spokesman Bill Halldin said the lender
“voluntarily reduced overdraft fees and eliminated all non-sufficient
fund fees in the first half of 2022,” resulting in a 90% drop in revenue
from those fees. The stock rose 36¢.
If you would like to learn more about BAC, click on this link:
club.ino.com/trend/analysis/stock/BAC_aid=CD3289&a_bid=6aeoso5b6f7
Bank of America fined for consumer abuses including fake accounts, bogus fees
General Motors (GM) is positioning 2 new crossovers from Chevrolet & Buick as its
answer to affordability issues left by discontinued, cheaper sedans. Affordability
has increasingly become a concern among investors & consumers. Cox
Automotive reports the average price paid for a new vehicle this year
has ballooned to upward of $48K, up about $5200 from 2
years ago & up $11,700 from 5 years ago. The higher prices have
pushed roughly 10% of traditional new car buyers out of the market, according to Cox. GM,
like its crosstown rivals, has largely discontinued traditional sedans
in favor of popular, larger crossover vehicles. The problem is those
smaller vehicles were among the cheapest in the industry & have yet to
be replaced by anything close in size & price. While nondomestic automakers such as Toyota Motor (TM) & Hyundai Motor continue to offer sedans, the prices have steadily increased & those
options have been in low availability in recent years due to supply
chain problems. “Automakers have made a choice to focus,
especially during the chip crisis, to focus on bigger more expensive,
more profitable vehicles,” said Michelle Krebs, exec analyst at Cox
Automotive. “But there clearly is demand for less-expensive vehicles.” GM's new 2024 Buick Envista & redesigned 2024 Chevrolet Traxcrossovers start at $22,400 & $20,400, respectively. That makes them competitively priced with sedans from other automakers. Execs from Buick & Chevrolet say they expect the vehicles to be
among their bestsellers as production ramps up & the crossovers are
imported from factories in South Korea. The stock rose 33¢.
If you would like to learn more about GM, click on this link:
club.ino.com/trend/analysis/stock/GM_aid=CD3289&a_bid=6aeoso5b6f7
GM positions Chevy Trax, Buick Envista crossovers to fill an affordability gap
Gold prices traded slightly higher as the $ weakened & Treasury yields eased while traders awaited the release of US inflation data due out tomorrow. Gold futures for Aug gained $4 to $1935 per ounce. Gold received a modest bump from a coterie of factors, including a weaker $ & lower Treasury yields. The ICE US Dollar Index a closely watched gauge of the $'s strength, was modestly lower at 101.95. The yield on the 10-year Treasury note was off by 3.5 basis points at 3.975%.
Gold prices slightly higher as U.S. dollar weakens
Oil rose amid indications that Russian crude production is dropping, signaling the market's supply glut may be coming to an end. Average shipments for Russian crude have dropped below their Feb averages, according to fresh data, a key development in a market that has been held down this year by the Kremlin's stronger-than-anticipated crude exports. Adding to bullish sentiment is news that China will take more steps to revive its economy with additional stimulus. West Texas Intermediate rose above $74 a barrel, surpassing its 100-day moving average, which has been a key resistance level in past months. Crude's recent moves have been exaggerated by lower summer trading volumes. Still, crude is down 6.7% this year on China's weakness, fears of a global economic slowdown due to monetary tightening by central banks & resilient supply from producers including Russia & Iran. In a recent effort to prop up the market, OPEC+ heavyweights Saudi Arabia & Russia have pledged even more supply reductions. WTI for Aug rose $1.84 to settle at $74.83 a barrel & Brent for Sep settlement increased $1.71 to $79.40 a barrel.
Oil Rises as Russian Crude Output Drops, China Signals Stimulus
Everybidy is anxious to get the inflatioin data coming in the next 2 days. Chances are that they will be mild. Inflation is remaining, but below recent very high levels that brought on selling in the stock market. Meanwhile, the recession which was signaled by the inverted yield curve (short rates substatially higher than long rates) is still out there, somewhere. Even though the economy is sluggish, it seems to be growing even if only at a modest rate.
Dow Jones Industrials
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