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United Survives Boeing Debacle
And, Ethereum Foundation liquidation.
Today is Tuesday, January 23, 2024.
The Early Bird Index today is 63.89.
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United Survives Boeing Debacle
Amid another headache in the air travel industry, United Airlines (Nasdaq: UAL) posted strong financial results on Monday and shares jumped 6.14% in after-hours trading.
Financials: United Airlines reported earnings of $2.00 per share in the past quarter and revenue of $13.6 billion; both were better than expected.
Details: While revenue per seat mile decreased in the quarter, United Airlines more than made up for the drop. Capacity grew 14.7% while total operating revenue jumped 9.9%.
Outlook: United Airlines expects its 2024 full-year earnings per share to be between $9 to $11 per share, which is better than expected.
Background: These results come during a precarious time for the airline industry. An incident involving a Boeing (NYSE: BA) aircraft in January resulted in the grounding of most Boeing 737 MAX 9s for safety checks.
Powering the Story: If this grounding lasts through the end of January, United Airlines said that it will report a loss between 35 cents to 85 cents per share in the current quarter.
Stock Price: United Airlines is down 21% in the last year, including 8% in the last 30 days.
Final Thoughts: Good results from United Airlines. But if the 737 MAX 9 grounding lasts beyond January, the company could see bigger losses.
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Notables
Notable Earnings Today: Netflix (Nasdaq: NFLX), Verizon Communications (NYSE: VZ), 3M (NYSE: MMM), Intuitive Surgical (Nasdaq: ISRG), General Electric (NYSE: GE), Texas Instruments (Nasdaq: TXN), RTX (NYSE: RTX), Steel Dynamics (Nasdaq: STLD), Johnson & Johnson (NYSE: JNJ), Baker Hughes (Nasdaq: BKR), Halliburton (NYSE: HAL), Stride (NYSE: LRN), Lockheed Martin (NYSE: LMT), Canadian National Railway (NYSE: CNI), Procter & Gamble (NYSE: PG), D.R. Horton (NYSE: DHI), PACCAR (Nasdaq: PCAR), WesBanco (Nasdaq: WSBC), Invesco (NYSE: IVZ), Old National Bancorp (Nasdaq: ONB), Synchrony Financial (NYSE: SYF), Trustmark (NasdaqGS: TRMK), Veritex Holdings (Nasdaq: VBTX), NBT Bancorp (Nasdaq: NBTB), EastWest Bancorp (Nasdaq: EWBC).
Notable IPOs Today: Ramper Innovations (Wefunder), Nepal Tea Collective (Wefunder).
Notable Equity Crowdfunding Campaigns Ending Today: Coco Pago (Wefunder), Bando Alternative Group Delivery (Mainvest), Arrive (PicMii).
Notable Economic Events Today: API Weekly Crude Oil Stock (4:30 p.m. ET).
Ethereum Foundation Liquidation
The price of Ethereum dropped by around 4% on Monday, continuing a slide since spot Bitcoin ETFs (exchange-traded funds) were approved earlier this month.
Details: Ethereum, which had a strong 2023, is now in the red for 2024. Most of the losses have come in the past few days.
Powering the Story: The non-profit Ethereum Foundation liquidated more coins on Monday by selling $1.6 million worth of Ethereum in the process, according to Arkham Intelligence.
Final Thoughts: The expectation of more investors coming into crypto hasn’t materialized. Many coins, including Ethereum, are down in recent weeks.
AGNC Investment’s Mixed Results
AGNC Investment (Nasdaq: AGNC) posted mixed financial results on Monday, causing the stock of the real estate company to dip 1.65% in after-hours trading.
Final Thoughts: The stock is down 16% in the past year due to the struggling real estate market.
Trends to Watch
Prime Problems: Amazon Hopes to Dominate the World of Streaming Ads. It Faces Some Challenges Along the Way. (The Wall Street Journal)
In and Out: Bitcoin ETFs Have Gained $4 Billion—But Other Crypto Funds Are Waning (Decrypt)
Flying High: Pilots at Southwest ratify a contract that will boost their pay raises by nearly 50% by 2028 (The Associated Press)
NuDeal: Sunoco to buy NuStar Energy in $7.3 billion all-stock deal (CNBC)
Nextflix and Exit: Netflix Film Chief Scott Stuber Will Leave to Start New Company (Bloomberg)
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