Diamonds and Dogs

12/18/18

Boeing (BA) is leading the Dow higher. The airline and defense stock is up 4% as the company hiked their dividend 20% and boosted their share repurchase plan by $20 billion. Boeing as now increased their dividend nearly 325% over the past six years. Boeing also approved the terms of their planned joint venture with Brazilian company, Embraer. The $4.2 billion deal will give Boeing an 80 percent share of Embraer's commercial aircraft and services operations.

Oil prices remain a dog. The price of oil is down 5% to a 15-month low on Tuesday as the United States and Russia continue to pump at record levels even as analysts warn that signs of faltering demand are emerging.  West Texas crude has lost 39% from the four-year highs in early October. The slump has brought West Texas crude year-to-date loses to 22%. Apache (APA), Hess (HES) and Devon Energy (DVN) are down 3%.