Million Dollar Settlement
Although the markets temporarily forgot inflation concerns, new data show consumers are already feeling it. — More on that in the “Overall Market” section.
Beyond the overall market, two companies delivered excellent news to their investors. First, a live TV streaming company announcing exclusive broadcasts for the World Cup qualifying matches. Second, a car manufacturer announced considerable investments in EVs. — More on that in the “What’s Up?” and “What’s Down?” sections.
By the way, are you excited to see the man drive Moon’s surface? — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
- U.S. markets: The stock market ended in the green zone on Wednesday. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: After dropping under $31K per coin on the weekend, Bitcoin‘s price stayed at $38K per coin for the second day in a row.
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The stock market ended mostly flat on Thursday.
Although starting the session on high notes, the markets closed near to zero gains. After the Department of Labor revealed a new jobless claims report, investors were pleased to see a lower-than-expected amount of claims. The latest jobless claims drop showed the economy is still on the right track to a post-pandemic rebound for the markets.
So, what happened?
Shares of General Electric (Ticker: GE) were up by more than 7% on Thursday. After reducing its airplane engine production volume when the pandemic hit, the company received good news from two key customers. Boeing (Ticker: BA) and Airbus (Ticker: EADSY) announced plans to accelerate their plane production rate, increasing the demand for GE’s engines. Although General Electric’s aviation revenue declined 31% last year, investors are confident the revenue would recover in 2021 as the demand for engines increases.
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No to Acquisitions
So what happened?
Shares of Okta (Ticker: OKTA) were down by more than 9% on Thursday. Although the cloud security company presented a better-than-expected earnings report, investors rejected Okta’s guidance for the rest of the year. The company announced it expects wider losses as Okta ended the Auth0 acquisition. Although reasonable, the purchase would extend Okta’s current $0.10 loss per share to $0.35. For investors, the value was excessively high to justify the company’s acquisition.
Million Dollar Settlement
So what happened?
After many countries grounded Boeing’s airplane in 2019 due to two fatal accidents, the company faced extensive investigations from the Federal Aviation Administration (FAA). However, it seems that Boeing and the government reached an agreement. Although it might sound bad for the airplane company, the markets accepted it as a good deal. Instead of possible severer punishment, Boeing decided it would be better to pay $17 million in fines to settle investigations related to the 737 MAX. Furthermore, the agreement includes $10 million in additional fines if Boeing doesn’t follow the settlement terms. Although settling the investigations, FAA Administrator Steve Dickson stated safety is unnegotiable with any company from the aviation industry.
Although paying fines is never good news, it is Boeing’s opportunity to leave its mistakes into the past.
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