๐Ÿช‚ Is it finally time to bail out of Boeing?

๐Ÿ’Š And Walgreens delivered a bitter pill to investors

Iโ€™ll be in Nashville next week for our investor trip, so these emails may be a bit later in the day than youโ€™re used to.

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๐Ÿ“ฐ Market Headlines

Nasdaq leads market decline as chip stocks slump following ASML's disappointing earnings.

  • The Nasdaq fell 1%, while the Dow and S&P 500 each dropped around 0.8%.

Vice President Kamala Harris maintained a slim 45% to 42% lead over Former President Donald Trump in the latest Reuters/Ipsos poll.

The US Department of Transportation fined Lufthansa $4 million for discrimination.

Google partnered with Kairos Power to build seven small nuclear reactors by 2035, which will provide 500 megawatts of power for its AI systems.

๐Ÿ•ถ๏ธ Market Vibes

๐ŸŽฐ Market Forecasts and Futures

Forecasts via โ€‹Kalshi, the prediction market.

๐Ÿ˜ฑ Fear and Greed Index

๐ŸŽค What you said last time

What you had to say:

โ€œPeople with no other options must be content with what is offered.โ€

๐Ÿ“ˆ Trends you need to know

The crash landing jokes write themselves.

๐Ÿง  What do you think?

Itโ€™s been a tough year for Boeing.

  • Financial Maneuvers: Boeing is in the midst of a significant financial restructuring. The company plans to raise up to $25 billion through a combination of stock and debt offerings. Additionally, Boeing has secured a $10 billion credit agreement with major lenders. This move aims to address its current liquidity issues, exacerbated by a prolonged labor strike and ongoing operational and safety issues.

  • Stock and Debt Offerings: The decision to raise capital through selling shares and issuing debt has led to discussions about potential dilution of share value for current investors. Some market commentators have viewed this with skepticism, suggesting concern over the impact on stock value.

  • Credit Rating Concerns: Boeing's credit might be downgraded to junk status due to its need to raise significant capital, which reflects worries about the company's financial health.

  • Labor Strike: Boeing is dealing with a crippling labor strike, now in its second month, which has severely affected production. This strike compounds the financial strain on the company, leading to further cash flow problems.

  • Market Sentiment: The sentiment from financial news sources seems mixed but leans towards concern. While some posts highlight the strategic move to 'shore up' Boeing's balance sheet, others worry about the company's operational decisions and future profitability.

  • Regulatory and Production Crisis: Beyond the strike, Boeing continues to grapple with regulatory scrutiny and production issues, particularly related to the 737 MAX and other models, influencing its market perception and stock performance.

Can Boeing be saved?

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๐Ÿ“Š Stocks

Get $20 free shares at โ€‹public.comโ€‹ using code ALTSCO.

Winners and losers

Earnings, upgrades, and acquisitions

  • Walgreens beat Q4 estimates; shares surged 15%.

  • UnitedHealth topped Q3 expectations, but shares dropped 8%.

  • United Airlines reported Q3 adjusted EPS beat estimates; shares dipped 0.84%.

  • Citigroup beat Q3 expectations, however, shares fell by 5.1%.

  • Goldman Sachs posted Q3 surpassing expectations, but stock inched down 2.3%.

  • Bank of America beat Q3 EPS estimates as shares rose 0.6%.

Market movers

  • WordPress took control of WP Engine's Advanced Custom Fields plugin, citing security concerns.

  • Data broker National Public Data filed for bankruptcy after a massive data breach.

  • Walgreens announced plans to close 1,200 stores over the next three years as part of a cost-cutting strategy.

  • A federal judge ruled Meta must face lawsuits from over 30 US states accusing it of encouraging social media addiction among teens.

  • Fairway Independent Mortgage Corporation was penalized $8.9 million by US regulators for alleged racial discrimination.

  • Boeing made plans to send layoff notices to thousands of workers in November, as part of its overall 17,000 planned layoffs.

Ideas, trends, and analysis

  • US consumers' long-run inflation expectations rose to 2.9% for five years ahead, up from 2.8% in August.

  • Expected credit delinquency rates surged to 14.2%, the highest level since April 2020.

Recommended Newsletter

๐ŸŒ Global Perspectives

  1. ๐Ÿ‡ช๐Ÿ‡ธ๐Ÿ‡ท๐Ÿ‡บ Spanish authorities arrested four people suspected of shipping 14 tons of chemicals to Russia.

  2. ๐Ÿ‡ฎ๐Ÿ‡ฑ๐Ÿ‡ต๐Ÿ‡ธ An Israeli airstrike on a Gaza hospital killed several people sheltering in the complex.

  3. ๐Ÿ‡ต๐Ÿ‡ฐ๐Ÿ‡จ๐Ÿ‡ณ Pakistan agreed to increase security for Chinese citizens and projects following militant threats.

  4. ๐Ÿ‡ฐ๐Ÿ‡ต๐Ÿ‡ท๐Ÿ‡บ North Korean military engineers have been deployed to support Russian missile launches in Ukraine.

๐Ÿ“Š Crypto

  • Canary Capital filed for a spot in Litecoin ETF with the SEC.

  • Coinbase escalated its legal battle with the SEC, filing a motion for partial summary judgment to access internal documents.

  • Blockstream secured $210 million in funding to accelerate Bitcoin Layer 2 technologies and expand its mining operations.

๐Ÿง  Errata

  • An Air India flight to Chicago made an emergency landing in Arctic Canada after a false bomb threat.

  • Nine monkeys mysteriously died at a Hong Kong zoo.

  • Christopher Columbus was secretly Jewish, according to a new DNA study.

๐Ÿ“บ What to Watch Today

Thatโ€™s all for today. Did I miss anything? Smash the reply button to let me know.

Cheers,

Wyatt

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