2 Indexes Hit Record Highs 📈 | $NVDA & $AAPL Cross $3T Market Cap 🧢 | $BA CEO Set To Face The Music June 18th 🧑⚖️| $SFIX Soars 24% On Better Than Expected Earnings 🤑
Big tech helped push the S&P500 and Nasdaq Composite to new record highs in todays trading session. Rally seems to be taking shape in response to tentative optimism surrounding interest rate cuts with a slowing labor demand and economy seem to cool off. Let’s take a look at how our indexes preformed today:
The S&P500 ripped 1.2% to close at a record high $5354
The Nasdaq Composite also had a record day popping 2% and closing at $17,187
The Dow Jones Industrial gained a modest 0.2% on todays trading session
The tech sector was the clear winner in todays trading session with gaining more than 5% allowing them to cross $3T market cap for the first time ever. However they were not alone because market cap also rose above $3T since the first time since January. Treasury yields were on the losing side of todays market with the 10-year hitting 4.28% which is the lowest level since March.
The CME FedWatch tool showed a shift in hopes for a rate cut today with 65% of traders expecting a rate cut from the Federal reserve in September, this is up from the previous week 50% number that was reported. We also got a peak into the ADP private payrolls report this AM which showed more proof of a cooling labor market. The private-sector growth for May came in below estimates but focus is now shifting to the monthly jobs report delivered by the Fed on Friday.
Boeing’s Safety Saga: CEO to Face the Music on June 18 ✈️
Get ready for a showdown on Capitol Hill! Boeing CEO Dave Calhoun is set to testify before a U.S. Senate panel on June 18, following a string of incidents that have raised serious concerns about safety and quality. The Federal Aviation Administration (FAA) has barred the planemaker from expanding production of its best-selling 737 MAX, and regulators are breathing down Boeing’s neck. Senator Richard Blumenthal, chair of the Permanent Subcommittee on Investigations, is demanding answers from Calhoun about the company’s questionable safety practices and culture. After two fatal crashes in 2018 and 2019 killed 346 people, Boeing promised to overhaul its safety protocols, but it seems those promises were empty.
A Boeing engineer recently testified that the company took dangerous manufacturing shortcuts and silenced him when he raised safety concerns. Calhoun’s testimony is a crucial step in addressing Boeing’s failures, regaining public trust, and restoring the company’s reputation in the American economy and national defense.
With government investigations and management shakeups already underway, Calhoun’s departure by the end of the year is looming. The FAA has given Boeing 90 days to develop a comprehensive plan to address “systemic quality-control issues,” and the Justice Department is probing the company’s breach of a 2021 agreement that shielded it from criminal prosecution.
Will Calhoun’s testimony be enough to restore faith in Boeing? Stay tuned for what promises to be a dramatic showdown on June 18.
Stitch Fix Stitches Together a Surprise: Shares Soar 24% on Better-Than-Expected Earnings 👀
Stitch Fix ( ) is finally showing signs of life! The apparel company’s latest quarterly results sent shares soaring as much as 44.9% at the open on Wednesday, with a 24% gain still holding strong by mid-afternoon. The “wardrobe in a box” pioneer, which sends subscribers a curated collection of clothing, has been struggling to live up to its promise. Despite its innovative concept, Stitch Fix has faced repeated losses and strategic missteps, sending its shares plummeting over 95% from their all-time highs.
But CEO Matt Baer, who took the reins about a year ago, seems to be turning things around. The company’s fiscal third-quarter results beat Wall Street’s expectations, with a loss of $0.18 per share on revenue of $322.7 million. That’s a significant improvement from the expected $0.25 per share loss on sales of $306 million.
Baer is optimistic about the company’s transformation efforts, saying they’re “beginning to work” and will ultimately drive “sustainable, profitable growth.” The forecast for fourth-quarter revenue of $312 million to $322 million also topped expectations. While there’s still work to be done – active clients are still declining, albeit at a slower rate – there are encouraging signs. Net revenue per active user is up 2% from last year, and gross margin has improved by 280 basis points.
Is Stitch Fix a buy? Not just yet. The company still needs to prove it can deliver profits and growth consistently. But for long-suffering shareholders, there’s finally a glimmer of hope.
