Today is Monday, June 26, 2023.
The Early Bird Index today is 56.24.
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Airline Summer Delays Arrive
Several major U.S. airlines experienced delayed flights on Sunday, but there could be worse problems coming down the pike for the airlines.
Details: JetBlue (Nasdaq: JBLU) had delays for nearly half of its flights on Sunday, according to the website FlightAware. United Airlines (Nasdaq: UAL) had delays for 33% of its flights, American Airlines (Nasdaq: AAL) had delays for 30%, and Delta Air Lines (NYSE: DAL) had delays for 27% of flights.
The Problem: A combination of thunderstorms and failing equipment at an FAA facility resulted in delays across the east coast, according to Reuters.
But: Flight delays could be a big issue all summer. U.S. Transportation Secretary Pete Buttigieg recently said that there could be some airline delays or cancellations starting July 1st for passenger jets that haven’t upgraded their altimeters to deal with 5G interference, according to The Verge.
Final Thoughts: Most major airline stocks are up in 2023, so this potential 5G issue is worth watching because it could come back to haunt some airlines.
Notable Earnings Today: Carnival (NYSE: CCL).
Notable IPOs Today: Alchemy Investments Acquisition Corp 1 Class A Ordinary Shares (Nasdaq: ALCY), Kartoon Studios, Inc. (NYSE American: TOON).
Notable Equity Crowdfunding Campaigns Ending Today: El Hempe (StartEngine), QuantmRE (Republic), Protochol Beverage (Honeycomb), Palm City Wines (SMBX), Lynq (Republic).
Notable Economic Events Today: N/A.
Semiconductor Stock Gets Private Funding
Photo by Jonas Svidras / Unsplash
As the semiconductor industry continues its prolific year, one publicly-traded chipmaker is turning to the private markets for some much-needed cash.
Details: Wolfspeed (NYSE: WOLF) is expected to announce a deal where it will receive private funding, according to The Information on Sunday. Apollo Global Management Inc. is expected to give as much as $2 billion to Wolfspeed, comprised of $1.25 billion of cash immediately available and another $750 million for later, according to Bloomberg. Wolfspeed did not comment on the reports.
Definition: The deal is a form of direct lending, which is when private equity firms and other non-banks lend money out instead of traditional financial institutions.
Powering the Story: The sources say that the deal would help Wolfspeed expand operations in the United States. It would also give Apollo exposure to the growing chips industry.
Background: Wolfspeed reported better-than-expected earnings in April. At the time, the CFO said that the company would aim to get additional funding.
Stock Price: Wolfspeed is down 26% in 2023 as other semiconductor stocks are having a great year.
Final Thoughts: 2023 has been tough for Wolfspeed so far. Delays in manufacturing have hurt the business. Hopefully, this new funding can turn things around.
Uniswap Surges on Sunday
The price of the cryptocurrency Uniswap surged by 7% on Sunday and is now nearly positive for 2023.
Final Thoughts: By comparison, most other crypto prices declined on Sunday.
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Trends to Watch
More Volatility: What’s next for markets after aborted Wagner mutiny leaves Russia’s Putin weakened (MarketWatch)
Proud: Starbucks Workers, Citing Pride Decorations, Strike at Some Stores (The Wall Street Journal)
Bullish: Bitcoin trades above $30K, boosting traders’ interest in ETH, ARB, VET and STX (Cointelegraph)
Warning: Cut public spending or boost taxes to help tackle inflation, says BIS (Finacial Times)
Hero Syndrome: Crypto has a new rescuer: Wall Street (Yahoo! Finance)
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