Diamonds and Dogs
Boeing (BA) lifts the Dow above 20,000. Boeing is up 2.6% to a new 52 week high following better than expected earnings. The numbers actually were not great as revenue missed estimates and the company bought back $500 million worth of stock to make the earnings look better than expected. The company guided 2017 earnings and sales in line with estimates.
As Boeing soars, United Technologies (UTX) flames out. The Industrial conglomerate and jet engine maker dropped over 2%, the worst performing Dow component, as earnings beat, but revenue fell short similar to Boeing. United Tech sees intrinsic value significantly higher than stock price and will continue to buy back stock setting aside $3.5 billion for buy back in 2017 and $1 billion-$2 billion for acquisitions. Long term the company is well positioned.