Business and Finance News - 6.24.24

Alaska Airlines Reaches Tentative Labor Deal with Flight Attendants Amid Ongoing Negotiations and Strike Threats in Airline Industry

• Alaska Airlines (ALK) flight attendants reached a tentative labor deal with the carrier.

• The deal was struck under federal mediation; details are not yet public.

• Union leadership will review the deal before a vote by rank and file members.

• American Airlines' flight attendants union talks ended without a deal.

• United Airlines is still negotiating with its flight attendants union.

• American Airlines' union advised cabin crews to prepare for a possible strike.

• Strikes in the U.S. airline industry are extremely rare, with a 30-day cooling-off period.

*Alaska Airlines is a major American airline that primarily operates in the United States, Canada, Mexico, and parts of Central America.

Apple Withholds Key Technologies from EU Amid DMA Compliance Concerns, Citing Privacy and Security Risks

• Apple (AAPL) will withhold new technologies from the EU due to the Digital Markets Act (DMA).

• Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing are blocked in the EU.

• Apple cites interoperability requirements of the DMA as a risk to privacy and security.

• The DMA prohibits Big Tech from favoring their services over competitors and combining personal data.

• The European Commission welcomes gatekeepers if they comply with fair competition rules.

• EU consumers in 27 nations will not access these technologies this year.

• Apple, Google, and Meta are under investigation for allegedly ignoring the Digital Markets Act.

*Apple Inc. is a multinational technology company known for its innovative products and services (iPhone, iPad, Mac Computers, etc.).

Airbus Nears Acquisition of Spirit AeroSystems’ A220 and A350 Sites as Boeing Aims for Quarter-End Deal to Stabilize Supply Chain

• Airbus (AIR-FR) nears a deal to acquire Spirit AeroSystems’ (SPR) A220 and A350 parts production sites.

• The potential acquisition includes facilities in Belfast, Kinston, Saint-Nazaire, and Prestwick.

• Boeing (BA) aims to finalize its own deal with Spirit AeroSystems by the end of this quarter.

• Spirit AeroSystems seeks to exit Airbus-related operations due to financial pressures.

• Boeing's deal will reintegrate Spirit, addressing quality and manufacturing issues.

• Spirit's financial strain worsened after quality issues with Boeing's 737 Max aircraft.

• Reintegrating Spirit would stabilize Boeing's supply chain and improve production oversight.

*Airbus is a major European multinational aerospace corporation that designs, manufactures, and sells civil and military aerospace products worldwide. 

*Boeing is a leading American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide.

*Spirit AeroSystems, Inc. is one of the largest and most prominent manufacturers of aerostructures for both commercial and defense aircraft.

Under Armour Settles 2017 Class Action Lawsuit for $434 Million, Avoiding July Trial and Agreeing to Governance Changes

• Under Armour (UA) will pay $434 million to settle a 2017 class action lawsuit.

• The settlement avoids a trial scheduled for July 15 in Baltimore federal court.

• The lawsuit accused Under Armour and CEO Kevin Plank of misleading shareholders about revenue growth.

• In 2021, Under Armour paid $9 million to settle SEC charges for misleading investors.

• The SEC found Under Armour used a tactic to "pull forward" $408 million in 2015 orders.

• The settlement will be paid with cash on hand and a $1.1 billion revolving credit facility.

• Under Armour will continue separating the roles of chair and CEO for at least three years.

*Under Armour, Inc. is an American company that designs, manufactures, and sells performance apparel, footwear, and accessories.

U.S. Existing Home Sales Fall 0.7% in May as Inventory Surges, Prices Hit Record Highs, and Mortgage Rates Soar

• U.S. existing home sales fell 0.7% in May, marking the third straight monthly decline.

• Housing inventory surged 18.5% from a year ago to the highest level since August 2022.

• Median house prices rose 5.8% year-on-year to a record $419,300.

• Mortgage rates reached a six-month high of 7.22% in early May, affecting sales.

• Home resales dropped 2.8% year-on-year in May, indicating weakened market momentum.

• Inventory increases in Texas and Florida partly due to soaring property insurance costs.

• Sales of properties under $250,000 continue to decline, indicating a scarcity of entry-level homes.

A Few Companies Expected to Report Earnings This Week…

• FedEx (FDX) is expected to report on Tuesday.

• Micron (MU) is expected to report on Wednesday.

• Nike (NKE) is expected to report on Thursday.

*FedEx Corporation is a multinational delivery services company known for its global courier and logistics services.

*Micron Technology, Inc. is an American multinational corporation that specializes in the design and production of semiconductor devices, primarily memory and storage products. 

*Nike, Inc. is a global corporation that designs, manufactures, and sells athletic footwear, apparel, equipment, and accessories.

Here’s how the markets closed on Friday:

• Dow Jones: 39,150.33 +15.57 (+0.04%)

• S&P 500: 5,464.62 -8.55 (-0.16%)

• Nasdaq: 17,689.36 -32.23 (-0.18%)

• Bitcoin (BTC): $63,675.87 (3:45PM PST on 6/23/24)

• Ethereum (ETH): $3,417.76 (3:45PM PST on 6/23/24)

Here’s how the THE SUPER SIX STOCKS did on Friday:

• Microsoft (3.343T): 449.78 +4.08 (+0.92%)

• Apple (3.182T): 207.49 -2.19 (-1.04%)

• Nvidia (3.119T): 126.57 -4.21 (-3.22%)

• Alphabet (2.228T): 180.26 +2.55 (+1.43%)

• Amazon (1.968T): 189.08 +2.98 (+1.60%)

• Meta Platforms (1.255T): 494.78 -6.92 (-1.38%)