Dow rebounded 132, advancers over decliners about 5-4 & NAZ went up 81. The MLP index hardly budged in the 208s & the REIT index was flattish in the 479s. Junk bond funds were bid higher along with stocks & Treasuries saw a little selling bringing higher yields (more below). Oil was about even in the 101s & gold fell 17 to 1886.
AMJ (Alerian MLP index tracking fund)
|
|
Boeing
(BA), a Dow stock, reported a wider adjusted quarterly loss & lower revenue than expected as the company faced higher costs on both commercial & defense aircraft & charges tied to the war in Ukraine. The
company said it will pause production of its 777X plane, which has
not yet been certified by US regulators, thru 2023, a plan the
company says will create $1.5B in abnormal costs starting in Q2. BA
also doesn't expect deliveries of the plane to start until 2025, more
than a year later than it previously forecast. The company posted a net loss of $1.2B in Q1,
wider than the $561M loss it posted a year earlier. Revenue of
$14B fell 8% from Q1-2021 & short of
estimates. Adjusted results was for core EPS showed a loss of $2.75 loss per share vs an expected loss of 27¢. The
company is ramping up 737 Max output to 31 a month in Q2. It delivered 95 planes in Q1, up from 77 in the
same period last year, but revenue in its commercial aircraft unit fell
3% from last year to $4.3B as 787 Dreamliner deliveries
remained halted. BA reported negative operating cash flow for the qtr, but still expects to be cash flow positive in 2022. The stock tumbled 14+ to the 152s.
If you would like to learn more about BA click on this link:
club.ino.com/trend/analysis/stock/BA_aid=CD3289&a_bid=6ae5b6f
Boeing tumbles on quarterly loss, added costs from 777X and defense delays
Sen Joe Manchin, once again, poured cold water on hopes the Senate would pass Pres Biden's ambitious Build Back Better social spending plan. "There's not a Build Back Better revival," Manchin told reporters. "There's not." Manchin said legislation that deals with "major social changes" – as BBB sought to tackle free preschool, clean energy projects and health care – needs to go thru the regular Senate process & "build consensus." "Then if you think you need reconciliation because you got a great piece of legislation, but people are playing politics with it that's another. … We haven't had hearings on any of these things," Manchin added. With the Senate equally divided, all 50 senators in the Dem caucus must be united in passing sweeping spending legislation thru a process called budget reconciliation. But both Manchin & Sen Kyrsten Sinema have previously opposed the roughly $2T social spending & environmental bill that passed the House in Nov – & efforts to pass a pared down bill that they could support have since sputtered. Fresh off a spring break recess, environmental groups, lobbyists & progressives are making a new push to get at least something passed in the Senate before the midterm elections in Nov. Many lawmakers view Jul 4 as a crucial deadline to get something passed before the midterm season & White House officials are facing the "real fear" that they will fail to reach a deal with Manchin to get anything done.
Dem senator issues devastating blow to Biden's signature economic plan
Treasury yields were mixed amid persistent concerns about a global economic slowdown. The yield on the benchmark 30-year Treasury bond fell 1.6 basis points to 2.854%. Yields move inversely to prices & 1 basis point is equal to 0.01%. Treasury yields have been drifting lower this week, alongside falls in the stock market. A surge in Covid-19 cases in China, concerns over developments in the Russia-Ukraine war & tighter central bank policy to combat rising inflation, have all weighed on investor sentiment. Tensions are ratcheting up between Western allies & Russia after Foreign Minister Sergey Lavrov Mon said the threat of a nuclear war is very significant & the risks should not be underestimated. Defense Secretary Lloyd Austin responded to those comments, calling the nuclear war rhetoric “very dangerous and unhelpful.”
Treasury yields are little changed as economic growth concerns persist
Dow Jones Industrials
No comments:
Post a Comment