Friday, July 19, 2019
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WHAT TO WATCH
All eyes will be on Boeing ( BA ) after the company said it would take a massive second quarter charge on the idling of its 737 MAX , the troubled flagship plane at the center of two deadly crashes. Of the 30 stocks that make up the Dow Jones Industrial Average ( ^DJI ), Boeing carries the largest weight — but the stock rose in after-hours trading. The controversy will cost Boeing $5.6 billion in revenue and profit in Q2, the aerospace giant said.
Separately, investors will get a pulse of the current state of the transportation industry when Kansas City Southern ( KSU ) reports quarterly results ahead of the opening bell. Analysts polled by Bloomberg are expecting Kansas City Southern to report adjusted earnings of $1.61 per share on $706.23 million in revenue.
The transport sector has been in focus this week, after a mixed bag of quarterly reports. Trucking company J.B. Hunt ( JBHT ) kicked things off on a positive note with better-than-expected results, but rail giant CSX ( CSX ) spooked investors by slashing its outlook amid the ongoing U.S.-China trade war. Union Pacific ( UNP ) also cited trade tensions, but managed to boost its quarterly profit.
Meanwhile, American Express ( AXP ) will also deliver quarterly results ahead of Friday’s opening bell. The charge card giant is expected to report adjusted earnings of $2.03 per share on $10.86 billion in revenue.
House votes to raise minimum wage to $15 an hour : The U.S. House of Representatives has passed a bill that would gradually raise the federal minimum wage to $15 an hour, but the legislation is unlikely to pass the Republican-controlled Senate. The federal minimum wage has been stuck at $7.25 an hour since 2009 — that’s the longest stretch of time without an increase since the minimum wage was established in the 1930s. [Yahoo Finance]
Union Pacific CEO: Trade tensions are 'definitely' impacting business: The CEO of Union Pacific ( UNP ) says the railroad business is feeling the heat from U.S. trade tensions. “There [are] some unique impacts that are happening to the railroad that aren't reflective of the U.S. or global economy,” Lance Fritz, CEO of Union Pacific, the largest publicly-owned U.S. railroad tells Yahoo Finance. “We definitely see a trade impact on our grain exports.” [Yahoo Finance]
Microsoft beats Q2 estimates as cloud business holds momentum: Microsoft ( MSFT ) topped quarterly sales and profit projections, fueled by steady demand for cloud-computing services and a surprisingly strong Windows business. The software giant forecast promised robust growth will continue into next year. [Bloomberg]
U.S. tells T-Mobile, Sprint to wrap up divestiture deal -source . The U.S. Justice Department has told T-Mobile US ( TMUS ) and Sprint ( S ) to wrap up a deal by the end of next week to sell assets that need to be divested or face a lawsuit aimed at stopping their proposed merger, a source familiar with the deal said on Thursday. [Reuters]
Why US regulators are struggling to step up to regulate Facebook's Libra: Regulators, lawmakers on Capitol Hill, and the Libra Association itself appear to agree that regulation is needed to ensure that Facebook’s ( FB ) new digital currency is safe and secure to use. But no one appears to have a clear framework for who should take the first steps to actually doing something. [Yahoo Finance]
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