Today is Wednesday, October 12, 2022.
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GM's $69M Metals Mining Bet
General Motors (NYSE: GM) is investing up to $69 million in Queensland Pacific Metals, which sent the stock up 0.031% in after-hours trading on Tuesday.
Details: The investment is part of the proposed Townsville Energy Chemicals Hub (TECH) project in Northern Australia. The project, which will begin construction in 2023, is expected to be a leading supplier of high-grade advanced battery materials.
Big Picture: The investment gives General Motors a new source of cost-competitive nickel and cobalt for Ultium battery cells. The metals will be used in numerous electric vehicles produced by General Motors, including the Chevrolet Silverado EV, GMC HUMMER EV Pickup and SUV, Cadillac LYRIQ, Chevrolet Blazer EV and Chevrolet Equinox EV.
Quote: "The collaboration with Queensland Pacific Metals will provide GM with a secure, cost-competitive and long-term supply of nickel and cobalt from a free-trade agreement partner to help support our fast-growing EV production needs." - Jeff Morrison, GM vice president, Global Purchasing and Supply Chain.
Numbers: Shares of General Motors are down 47% this year, including 23% in the past 30 days.
Final Thoughts: General Motors has been selling more EVs recently and investing in EV technology. This new investment will help its EV plans. But, a potential recession could be devastating for the company.
Notable Earnings Today: PepsiCo (Nasdaq: PEP), Duck Creek Technologies (Nasdaq: DCT), Wipro (NYSE: WIT).
Notable IPOs Today: Alopexx, Inc. Common Stock (Nasdaq: ALPX), VictoryShares WestEnd U.S. Sector ETF (Nasdaq: MODL).
Notable Equity Crowdfunding Campaigns Ending Today: Frequency Machine (Republic), Big Laugh Comedy (StartEngine), Brothers Cole (Mainvest), Blockchain Laboratories (Netcapital).
Notable Economic Events Today: OPEC Monthly Report (7:00 a.m. ET), PPI / Core PPI(8:30 a.m. ET), FOMC Meeting Minutes (2:00 p.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).
Boeing 737 MAX's Senate Snub
Shares of Boeing (NYSE: BA) dropped 1.35% in after-hours trading on Tuesday after a report said that its 737 MAX planes were snubbed by Congress.
Details: According to Reuters, the U.S. Senate's defense bill does not have an amendment to extend a December deadline for Boeing to get regulator approval for its 737 MAX 7 and MAX 10 planes. Boeing also has not commented yet.
Background: Without approval, Boeing has to make changes to its cockpit alerting system that could delay the 737 MAX’s approval. Congress forced these changes due to the two fatal 737 MAX crashes.
Special Delivery: The news is particularly tough for Boeing investors. Earlier in the day, the company reported third-quarter deliveries, which were viewed by analysts as positive.
Stock Price: It’s been a tough year for Boeing’s stock. It is down 36%, including 17% in the past 30 days.
Final Thoughts: Boeing is trying to turn its stock around. The company could face more economic headwinds, and this U.S. Senate news does not help.
Valkyrie Closes ETF
Valkyrie Funds said Tuesday that it is closing, liquidating, and delisting its Valkyrie Balance Sheet Opportunities FUND (Nasdaq: VBB).
Final Thoughts: Investors holding shares at liquidation on October 31 will receive cash equal to the value of the shares. The ETF has lost over half its value since launching last year.
Trends to Watch
Approaching Danger: IMF warns of slowing growth, rising market risks as finance officials meet (Reuters)
Staying Positive: Don’t worry, there’s still hope for the stock market (CNN)
Rebound: Bitcoin Recovers $19K Though Inflation Fears Haunt Market (CoinDesk)
Un-bear-able: Nasdaq Falls Into Bear Market After Volatile Day (The Wall Street Journal)
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