Market Watch:- Dow futures rose 50 points/0.1%, S&P 500 futures up 16 points/0.3%, and Nasdaq 100 futures rose 85 points/0.5%.
Wall Street trades positive despite Apple’s lawsuits and Boeing’s CEO search, with WeWork potentially resuming interest following former boss Adam Neumann’s bid.
Apple lawsuit
Apple is facing numerous lawsuits accusing it of monopolizing the smartphone market Watch, mirroring the Justice Department’s claims that Apple violated US antitrust law by suppressing technology that would have increased competition. Apple has denied the allegations. The company is also struggling with falling iPhone sales in the Chinese market, with domestic rivals like Huawei increasing competition. Apple’s iPhone sales in China fell 24% year-on-year in the first six weeks of this year, and its stock has fallen over 11% year-to-date. CEO Tim Cook’s recent visit to China suggests Apple is focusing on the Chinese market, as it needs to overcome its Asian challenges.
Neumann WeWork deal
Adam Neumann has submitted a bid of over $500 million to buy back WeWork, the office-sharing company he co-founded but was ousted from five years ago. WeWork filed for bankruptcy in 2023 and is currently working with bankruptcy advisors to restructure and streamline the business. Neumann had guided WeWork to be the most valuable U.S. startup, worth $47 billion, before his eccentric behavior led to his departure and derailed a major initial public offering. WeWork said in a statement that WeWork is an extraordinary company and receives expressions of interest from third parties regularly.
Boing CEO step down
Boeing has begun the search for a new CEO following a management shakeup following a mid-air panel blowout on a 737 MAX plane in January. The company announced that CEO Dave Calhoun, commercial airplanes chief and chairman will leave by year’s end. The new CEO will need to regain trust from regulators, customers, and the public due to quality and manufacturing flaws on the company’s planes. Boeing stock rose 1.4% after the announcement, but is down over 26% year-to-date.
Economic Calendar
8:30 Durable Goods
9:00 S&P Corelogic Case-Shiller Home Price Index
9:00 FHFA House Price Index
10:00 Consumer Confidence
10:00 Richmond Fed Mfg. Index
1:00 PM Results of $67B, 5-Year Note Auction
1:00 PM Money Supply
Other Key Events:
- Enterprise Connect Conference 2024, 3/25-3/28, in Orlando FL
- JP Morgan 13th Annual NAPA Valley Biotech Forum, 3/26-3/28, in San Francisco, CA
- Optical Fiber Communication Conference, 3/24-3/26, in San Diego, CA
- TD Cowen 17th Annual Infrastructure Services Conference, 3/26, in Toronto, CA
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U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.
U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.