Boeing's Junk Rating Risk ⚠️

And, Rocket Mortgage's new financing.

October 09, 2024

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Today is Wednesday, October 9, 2024.

The Early Bird Index today is 73.04.

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Boeing's Junk Rating Risk ⚠️

Things could soon worsen for Boeing (NYSE: BA) as S&P Global Ratings put the troubled aerospace company on its “Creditwatch Negative” list on Tuesday.

Details: S&P Global Ratings wants to downgrade Boeing’s credit ratings to the junk level because of the ongoing machinist union strike, which is in its fourth week.

  • It estimates that Boeing will lose about $10 billion this year due to the strike.

  • Boeing is also expected to need additional funding for operations and working capital.

  • Boeing has not commented on the announcement.

Background: Boeing's year has been awful between this strike and long-standing safety issues. The stock is down 38% in 2024.

Early Bird’s Nest Egg Gains: The ongoing machinist strike is hurting Boeing's financial situation.

  • This work stoppage is estimated to cost Boeing approximately $50 million per day in lost revenue, according to top analysts.

  • Boeing is already struggling with $60 billion in debt.

Final Thoughts: A potential downgrade from S&P Global Ratings would be awful for Boeing’s stock.

Notables

Notable Earnings Today: Helen of Troy (Nasdaq: HELE), AZZ (NYSE: AZZ), E2open Parent Holdings (NYSE: ETWO), Applied Digital (Nasdaq: APLD), Bassett Furniture Industries (Nasdaq: BSET), Byrna (Nasdaq: BYRN), Richardson Electronics (RELL).

Notable IPOs Today: KinderCare Learning Companies, Inc. (NYSE: KLC).

Notable Equity Crowdfunding Campaigns Ending Today: CMN (Netcapital), MyFloraDNA (StartEngine).

Notable Economic Events Today: Crude Oil Inventories (10:30 a.m. ET), FOMC Meeting Minutes (2:00 p.m. ET).

Rocket Mortgage's New Financing

Rocket Companies (NYSE: RKT) jumped 1.65% in after-hours trading on Tuesday after disclosing new financing that its subsidiary Rocket Mortgage secured.

Details: Rocket Mortgage said it got $2.5 billion in new financing options from banks last week.

Final Thoughts: Rocket Companies is already up 22% this year.

Delek Logistics Partners Posts New Public Offering

Delek Logistics Partners (NYSE: DKL) fell 8.22% in after-hours trading on Tuesday after disclosing a new public offering.

Details: The company announced a new public offering of $150 million worth of common shares. Investors were not pleased with the addition of new shares.

Final Thoughts: The stock was up just 1.18% this year before announcing the new public offering.

GM’s EV Evolution: GM’s Ultium battery gets the ultimatum (The Verge)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.