- 3 Big Scoops
- Posts
- 🍦 Boeing Pleads Guilty
Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 5,567.19 ( ⬆️ 0.54%)
Nasdaq Composite @ 18,352.76 ( ⬆️ 0.90%)
Bitcoin @ $55,790.22 ( ⬆️ 0.69%)
Hey Scoopers,
Happy Monday! Are you ready for an exciting newsletter today?
👉 Boeing to pay a $240 million fine
👉 Oil prices gain pace
👉 Bitcoin remains volatile
So, let’s go 🚀
Market Wrap 📉
Major equity indices rose to a fresh record high last Friday as the latest jobs report reignited hopes for rate cuts from the Fed.
The S&P 500 index is up 17.4% in 2024, with the benchmark posting its fourth positive week in the last five. Comparatively, the tech-heavy Nasdaq index is up 24% year-to-date.
Labor data released on Friday reflected a 206,000 increase in nonfarm payrolls in June while the unemployment rate rose to 4.1%, above estimates of 4%.
Treasury yields fell following the report on expectations that rising unemployment will spur the Fed to cut interest rates in the next six months.
Right now, the odds of a 25 basis point rate cut are 77%, up from 64% a week ago.
Trending Stocks 🔥
Nvidia- Shares of the artificial intelligence giant fell 1.9% after New Street Research downgraded the stock to hold from buy, citing limited upside given its monstrous rally in the last 18 months.
Macy’s - Shares of the retailer jumped over 12% after the investor group of Arkhouse Management and Brigade Capital increased its buyout offer to $24.80 per share, up from $24.
Coinbase - The crypto exchange ticked 0.5% lower after the trustee for the Mt. Gox exchange said the company has begun making payments to creditors.
Boeing Back in Focus
Boeing agreed to plead guilty to a criminal fraud charge tied to the fatal 737 Max crashes, the U.S. Justice Department confirmed. A few months back, U.S. prosecutors accused the aerospace giant of violating a 2021 settlement that shielded it from protection.
Under the deal:
Boeing agreed to pay a $243.6 million fine
A compliance monitor will be appointed to oversee compliance at Boeing through 2027
Boeing will have to invest $455 million in compliance and safety programs
The guilty plea would make the airline manufacturer a felon, complicating its ability to sell products to the U.S. government. In 2023, Boeing generated $78 billion, and 32% of its sales originated from its defense and security business.
Boeing stock is down 26.5% in 2024 and has trailed the broader markets significantly.
U.S. Crude Oil Tops $84 Per Barrel
U.S. crude oil prices rose to a two-month high of $84 per barrel as the benchmark is on pace for a fourth straight weekly gain.
Oil prices have rallied as analysts forecast:
A tighter Q3 with falling inventories as fuel demand should pick up in the summer
OPEC+ Production cuts to be in place through September
Geopolitical tensions in the Middle East might support higher prices
Moreover, hurricane Beryl has underlined weather risks to refineries and oil production on the U.S. Gulf Coast.
Bitcoin Prices Pull Back
While Bitcoin prices are down 25% from all-time highs, spot Bitcoin ETFs had the strongest day of inflows for a month on Friday, gaining $143 million in total.
Source: Coinglass
The net inflow value is the highest single-day number since June 6. However, investors should note that ETFs saw inflows of $1.7 billion in four days last month.
BlackRock’s iShares Bitcoin Trust is the largest BTC ETF, with more than $17 billion in assets under management. The ETF inflows reflect consumer optimism amid the sell-off associated with the Mt. Gox payouts.
Headlines You Can't Miss!
Carlsberg to acquire soft drink maker for $4 billion
Is Japan’s stock market rally sustainable?
European stock markets rise despite French election results
China’s equity markets continue to decline
German government transfers 1,000 BTC amid selling spree
Chart of The Day
In late 2023, several banks expected five or more interest rate cuts in 2024, while the median projection stood at three quarter-point cuts.
According to Visual Capitalist, today, more than half of the investment banks anticipate the first rate cut in September.
U.S. interest rates have remained at 5.25%- 5.5% since July 2023, sitting at their highest level in 23 years.
Despite higher borrowing costs, it is taking longer than anticipated to beat inflation amid strong consumer spending.
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.