Business and Finance News - 6.14.24

PPI Falls 0.2% in May, Largest Drop in Final Demand Goods Since October; Unemployment Claims Surge to Highest Since August

• Producer price index (PPI) declined 0.2% in May, contrary to a 0.1% increase expectation.

• Final demand goods prices fell 0.8%, the largest drop since October 2023.

• Initial unemployment claims increased to 242,000, the highest since August 2023.

• Excluding food, energy, and trade services, PPI remained unchanged against a 0.3% increase expectation.

• On an annual basis, the all-items PPI rose 2.2%.

• The energy index within PPI fell 4.8%, while food prices decreased by 0.1%.

• Fed held benchmark borrowing rate at 5.25%-5.5%, awaiting more evidence on inflation reduction.

*The Producer Price Index (PPI) is a measure of the average change over time in the selling prices received by domestic producers for their output. It's a key economic indicator that helps gauge inflation at the wholesale level.

Tesla Shareholders Ratify Musk's $56 Billion Pay Package, Approve Texas Move

• Tesla (TSLA) shareholders voted to ratify Elon Musk's 2018 pay package.

• The 2018 pay package was previously rescinded by a Delaware judge.

• The pay package was worth up to $56 billion in Tesla stock.

• Tesla shares rose 2.9% after the announcement.

• Shareholders also approved moving Tesla's incorporation to Texas.

• The company plans to develop self-driving vehicles for a ride hailing network.

• Tesla set a weekly record with 1,300 Cybertruck deliveries.

*Tesla, Inc. is an American electric vehicle (EV) and clean energy company.

Virgin Galactic Announces 1-for-20 Reverse Stock Split; Shares Drop 9.1% Amid 65.2% Yearly Decline

• Virgin Galactic (SPCE) announced a 1-for-20 reverse stock split effective June 14.

• Shares dropped 9.1% in premarket trading after the reverse stock split announcement.

• The reverse split aims to increase the per-share market price to meet NYSE requirements.

• Virgin Galactic’s common stock will trade on a split-adjusted basis from June 17.

• Virgin Galactic shares fell 5.5% to 85 cents on Wednesday.

• The company will halt commercial operations to develop its Delta-class spacecraft.

• Virgin Galactic shares are down 65.2% in 2024, compared to the S&P 500's 13.7% gain.

*Virgin Galactic is an American spaceflight company within the Virgin Group that aims to provide suborbital space flights to space tourists and suborbital launches for scientific research.

Waymo Issues Recall for 672 Vehicles After Collision, Deploys Fleet-Wide Updates Amid NHTSA Investigation

• Waymo issued a voluntary software recall after a driverless vehicle hit a telephone pole.

• The recall affects 672 vehicles and corrects a software error assigning low damage scores.

• This is Waymo’s second recall, following a recall of 444 vehicles in February.

• The crash occurred on May 21st in Phoenix, with the vehicle hitting the pole at 8mph.

• The recall involved physical updates at the central depot, not over-the-air updates.

• Waymo has deployed mapping and software updates across its entire fleet.

• Waymo is under NHTSA investigation for over two dozen incidents involving its driverless vehicles.

*Waymo is an autonomous driving technology company and a subsidiary of Alphabet Inc. It focuses on developing and deploying self-driving vehicle technology.

Yahoo News Launches AI-Enhanced App with Artifact Integration for Personalized, Clickbait-Free Experience

• Yahoo News integrates Artifact AI technology to enhance personalized news consumption.

• The reimagined app launches Thursday with AI features for better recommendations and reduced clickbait.

• Yahoo acquired Artifact in March, focusing on integrating its AI technology.

• Users can select specific topics and publishers to monitor within the app.

• The app allows blocking keywords and flagging clickbait for a controlled news feed.

• Yahoo will introduce a new homepage with personalized recommendations and real-time trending topics.

• The integration aims to make news consumption simpler, relevant, and more enjoyable for users.

*Yahoo News is a major online news platform that provides a wide range of news content and information to its audience.

Here’s how the markets closed yesterday:

• Dow Jones: 38,647.10 -65.11 (-0.17%)

• S&P 500: 5,433.74 +12.71 (+0.23%)

• Nasdaq: 17,667.56 +59.12 (+0.34%)

• Bitcoin (BTC): $66,818.39 (4:00PM PST on 6/13/24)

• Ethereum (ETH): $3,477.56 (4:00PM PST on 6/13/24)

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

• Apple (3.285T): 214.24 +1.17 (+0.55%)

• Microsoft (3.282T): 441.58 +0.52 (+0.12%)

• Nvidia (3.194T): 129.61 +4.41 (+3.52%)

• Alphabet (2.184T): 176.74 -2.82 (-1.57%)

• Amazon (1.913T): 183.83 -3.06 (-1.64%)

• Meta Platforms (1.279T): 504.10 -4.74 (-0.93%)