1) The Dallas based Borden Dairy Co. has filed for bankruptcy, thus becoming the second major U.S. milk seller to file in two months. Founded more than 160 years ago, the nationally renowned dairy company succumb to competitive pressures, declining consumption and falling profits which made it’s debt load unsustainable. Borden’s net loss was $42.4 million dollars for 2019, compared to $14.6 million dollars in 2018.
2) Oil prices continue upwards over fears of a U.S. and Iran clash which could result in oil supply problems. Prices briefly passed $70 dollars a barrel, but some experts predict prices will pass through seventy dollars and even up past eighty dollars as the crises deepens. The oil market was already tightened because of OPEC+ production cuts, so presently there is little margin to take up any slack.
3) New technical problems are emerging with the grounded 737 MAX, which reportedly goes beyond the software problems which started Boeing’s problems last spring. Company and regulators have scrutinized every aspect of the jet and have uncovered potential design flaws. There are concerns over wire bundles in the aircraft’s tail shorting, possible weakness in engine rotors and protection of fuel and fuel lines from lightning strikes. Also, the FAA is considering mandating more simulator training of flight crews.
4) Stock market closings for – 6 JAN 20:
Dow 28,703.38 up 68.50
Nasdaq 9,071.46 up 50.69
S&P 500 3,246.28 up 11.43
10 Year Yield: up at 1.81%
Oil: down at $62.97