Business and Finance News - 7.9.24

Boeing to Plead Guilty to Criminal Fraud Over 737 Max Crashes

• Boeing to plead guilty to criminal fraud over 737 Max crashes.

• Plea deal includes $243.6 million fine and federal judge approval.

• Boeing required to invest $455 million in compliance and safety programs.

• Independent monitor will oversee Boeing’s safety procedures for three years.

• Plea deal covers only pre-crash wrongdoing; no immunity for other incidents.

• Justice Department to submit plea agreement to U.S. District Court by July 19.

• Boeing CEO apologized to crash victims' families, defended safety record.

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

Corning Raises Q2 Sales Guidance to $3.6B Amid Fiber Optics Demand, Shares Surge 12%

• Corning raises second-quarter sales guidance to $3.6 billion from $3.4 billion.

• Second-quarter earnings expected to mark a return to year-over-year growth.

• Demand for fiber optics drives Corning's outperformance and innovation opportunities.

• Corning shares rose 12%, the best trading day since March 2020.

• Increased demand for optical connectivity products powers generative AI networks.

• New optical solutions by Corning reduce installation costs and carbon footprint.

• Corning to report second-quarter 2024 results on July 30, 2024.

*Corning (GLW) - Corning Incorporated is a multinational technology company specializing in the development and manufacture of specialty glass, ceramics, and related materials and technologies.

Eli Lilly to Acquire Morphic Holding for $3.2B, Enhancing Immunology Pipeline with Ulcerative Colitis Treatment

• Eli Lilly agrees to buy Morphic Holding for $3.2 billion.

• Eli Lilly to pay $57 per share, a 79% premium to Friday’s closing price.

• Acquisition bolsters Eli Lilly’s immunology pipeline.

• Morphic develops therapies for serious chronic diseases.

• Lead program targets ulcerative colitis and Crohn’s disease.

• Eli Lilly received FDA approval for Omvoh to treat ulcerative colitis.

• Acquisition expected to be completed in the third quarter.

*Eli Lilly (LLY) - Eli Lilly and Company is a global pharmaceutical company that discovers, develops, manufactures, and markets products in the areas of oncology, endocrinology, neuroscience, and immunology.

*Morphic (MORF) - Morphic Holding, Inc. is a biopharmaceutical company focused on discovering and developing oral integrin therapies for the treatment of various diseases. Integrins are a family of cell adhesion proteins that play a crucial role in various biological processes, including immune response, inflammation, and tissue repair.

Paramount Global to Merge with Skydance; Redstone Era Ends, David Ellison as CEO, $8B Investment, and Q3 2025 Close

• Paramount Global to merge with Skydance, ending Redstone family control.

• David Ellison to lead the combined company as CEO.

• Skydance and private equity firms to invest over $8 billion into Paramount.

• Paramount’s class A shareholders to receive $23 per share.

• Skydance to inject $1.5 billion of capital into Paramount’s balance sheet.

• Merger subject to regulatory approval, expected to close in Q3 2025.

• The deal includes a 45-day "go-shop period" for other offers.

*Paramount Global (PARA) - Paramount Global is a multinational media and entertainment conglomerate. It operates a broad portfolio of media and entertainment assets, including television networks, film production, streaming services, and content licensing.

*Skydance - Skydance Media, commonly known as Skydance, is a diversified media company that produces content across various platforms, including film, television, animation, and interactive media.

Samsung's Largest Union Launches Three-Day Strike Over Pay Disputes, Disrupting Chip Production Amidst AI Chip Market Goals

• Samsung's largest union initiates three-day strike over pay and vacation disputes.

• Over 3,100 workers participated in the strike, aiming to disrupt chip production.

• The strike follows a single-day strike in June, escalating labor action at Samsung.

• Union demands include higher wages, additional paid leave, and transparent bonus calculations.

• Samsung's shares remained largely unchanged despite the strike.

• The strike poses risks to Samsung’s AI memory chip production and market goals.

• Regulatory approval is pending; the strike could spur similar actions across Korea's tech industry.

*Samsung - Samsung is a multinational conglomerate headquartered in South Korea, known for its diverse range of products and services. The company's operations span various industries, making it one of the largest and most influential corporations globally.

Here’s how the markets closed yesterday:

• Dow Jones: 39,344.79 -31.08 (-0.08%)

• S&P 500: 5,572.85 +5.66 (+0.10%)

• Nasdaq: 18,403.74 +50.98 (+0.28%)

• Bitcoin (BTC): $56,876.80 (7:45PM PST on 7/8/24)

• Ethereum (ETH): $3,037.66 (7:45PM PST on 7/8/24)

Here’s how the THE SUPER SIX STOCKS did yesterday:

• Apple (3.493T): 227.82 +1.48 (+0.65%)

• Microsoft (3.465T): 466.24 -1.32 (-0.28%)

• Nvidia (3.159T): 128.20 +2.37 (+1.88%)

• Alphabet (2.354T): 190.48 -1.48 (-0.77%)

• Amazon (2.074T): 199.29 -0.71 (-0.35%)

• Meta Platforms (1.343T): 529.32 -10.59 (-1.96%)