Hey Global Investor! Here’s what you need to know before the US markets open.
Market Snapshot 📈
S&P 500 (Thursday’s Close) 4,493.28 -20.79 (0.46%)
NASDAQ (Thursday’s Close) 15,248.25 -38.38 (0.25%)
FTSE 100 (4:30 PM IST) 7,053.17 +28.96 (0.41%)
NIFTY 50 (Thursday’s Close) 17,353.50 -8.60 (0.05%)
USDINR (Thursday’s Close) 73.57 (1 Year -2.03%)
🔥 Top Movers
Aircraft manufacturer Boeing (BA) has made a habit of hitting air pockets. A US judge has allowed shareholders to file a suit against the board of directors in connection with the twin crashes of Boeing’s 737 MAX planes. Order cancellation and delivery delays are adding to the pile of woes. (Tweet This)
“Court”ing MAXimum Problems
In 2018 a Lion Air flight crashed in Indonesia. Less than five months later, an Ethiopian Airlines flight crashed just after takeoff. A total of 346 people lost their lives—the aircraft in question: Boeing 737 MAX. The FAA grounded the entire MAX fleet globally. Boeing’s reputation was in a downward spiral.
Out of desperation to get the planes back in the air, some key employees working with FAA inspectors made misleading statements that impeded the investigation. This was a bad idea! In January, Boeing was forced to settle criminal charges by paying $2.5B in fines.
Eventually, the FAA lifted the ban on MAX, and Boeing’s long-time customers such as Southwest, American, and United started embracing the MAX once again. Some minor hiccups notwithstanding, MAX was back in the sky again. But the impact of the crashes was still being felt.
Yesterday, the Chancellor of Delaware recognized that in addition to victims who lost their lives in the plane crashes, the shareholders of Boeing also suffered due to the board’s negligence. The judge said the board ignored red flags about the aircraft’s safety systems and didn’t question the process.
The court also took Boeing CEO Dave Calhoun to task regarding his misleading comments about how quickly the board met to discuss the first crash. Predictably, Boeing said it is “disappointed” by the decision and will consider the next steps after reviewing the order.
Company Snapshot 📈
BA $213.94 +2.56 (1.21%)
Analyst Ratings (26 Analysts) BUY 50% HOLD 46% SELL 4%
Later Today 🕒
- Kroger Co. Earnings (KR)
- Beyondspring Inc. Earnings (BYSI)
- 6:00 PM IST: Producer Price Index
Today’s Market Terminology: Target 🎯
Target price is an estimate of the future price of a stock. It is the price at which the stock is fairly valued with respect to its historical and projected earnings