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Tag: Packaging

  • ALLPack Indonesia 2024 invites ASEAN participation

    ALLPack Indonesia 2024 invites ASEAN participation

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    The rapid growth of the food and beverage (F&B) industry has spurred packaging and printing product innovations. International-scale exhibitions organizer Krista Exhibitions is organizing ALLPack Indonesia 2024, which will be held in conjunction with AllPrint Indonesia Expo 2024 at the Jakarta International Expo (JIExpo) center in Kemayoran, Jakarta, from October 09 to 12. ALLPack Indonesia 2024 will showcase processing and packaging technology for food, beverages, biscuits, confectionary, pharmaceutical products/drugs, traditional herbal drinks, cosmetics, personal care, beauty, agriculture, electronics, coolers, and other related industries.

    At the Philippine press conference held last May 10, Krista Exhibitions chief executive officer Daud D Salim said, “This year’s ALLPack Indonesia and AllPrint Indonesia 2024 forecast a 30 percent increase in the number of participants compared to the previous year and over 1,000 companies, will take part and 200 are small-and-medium enterprises (MSME). ALL Pack have attracted more than 70,000 local and international visitors and is expected to have more in 2024.” He said the participating exhibitors would hail from Singapore, Malaysia, Japan, Vietnam, South Korea, India, Germany, France, Italy, China, Austria, Indonesia, Taiwan, Thailand, the United Kingdom, Canada and the United States, among other nations.

    Daud D Salim point out that “Through AllPack Indonesia 2024, we will bring hundreds of professionals in the processing, packaging, automation, in the foods and beverages, pharmacy and cosmetics sectors will meet,” he added.

    For his part, Hari Noegroho, promotion & partnership director, Indonesian Packaging Federation, noted, “Global packaging market will continue to rise especially in the emerging economies as the consumer are purchasing more things online which will drive more specific packaging. There will also be greater role in packaging to function to cater the requirement for Food Safety, health concern and  help brand owner to protect against fake and counterfeit products via increased usage technology innovation. On the other hand Companies will address sustainability issue which is driven by demand of more lightweight, convenience and more portable product which requires technology to make it happen.  Packaging demands are changing to be Smarter, Better , Safer, Faster, Cheaper, Greener to fulfil the change in consumer behavior nowadays. IPF has an optimism that Indonesian packaging industry will continue to experience steady growth through the year by 3-4%.”

    The upcoming exhibition are welcoming prominent business players engaged in the packaging and printing industries, and welcomes collaboration with members of relevant ASEAN associations and institutions to take part at ALL Pack as exhibitors or visitors.

    AllPack Indonesia is also launching a Business Matching Program. Professional visitors will be invited based on procurement requirement, and one-to-one match-making service will be offered. The business matching activities are specifically designed to help visitors connect with the right and prominent people in the packaging and printing industries, fostering valuable relationships that can lead to successful business partnerships.​

    The exhibition will be open from 10AM to 7PM. Visitors are invited to register directly at the exhibition venue by submitting two name cards and an invitation that Krista Exhibitions has sent, or register online at the following link: https://register.kristaonline.com.

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    Gadgets Magazine 11

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  • Good Start Packaging Joins Rethink Food to Serve Meals From Excess Food to Hungry New Yorkers

    Good Start Packaging Joins Rethink Food to Serve Meals From Excess Food to Hungry New Yorkers

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    Compostable packaging reflects organizations’ shared commitment to sustainability and minimizing waste


    NEW YORK, April 17, 2024 (Newswire.com)
    –
    Good Start Packaging, a leading compostable food and drink packaging supplier, is supporting Rethink Food, a NYC-based nonprofit with the mission of creating a more sustainable and equitable food system, by supplying compostable food packaging for meal deliveries to food insecure communities in New York. As Rethink Food’s preferred compostable food packaging supplier for 2024, Good Start Packaging has donated $115,000 to support their work and provided packaging to celebrate the March 27, 2024, grand opening of Rethink Food’s new Community Kitchen in Greenwich Village.

    Rethink Food was founded in 2017 to transform excess food into culturally celebrated and nutritious meals, simultaneously minimizing food waste and supporting local communities impacted by food insecurity. Since its founding, Rethink Food has repurposed over 2.3 million pounds of excess food donated by New York City restaurants, food purveyors, grocers, and other partners across the food system.

    “Rethink Food and Good Start Packaging are committed to minimizing waste, giving back to the community, and inspiring people to live and operate more sustainably. The synergy between our missions made Rethink Food an ideal match for our philanthropic efforts,” comments Ken Jacobus, founder and CEO of Good Start Packaging.

    Good Start Packaging donates at least 20% of its profits to charitable organizations working to feed communities, advance human rights, and protect the planet. A certified B Corp, Good Start focuses on helping foodservice operators build sustainable, successful businesses while creating a better world.

    “We’re incredibly proud to partner with Good Start Packaging to further our mission of creating a more sustainable and equitable food system,” says Matt Jozwiak, Rethink Food’s Founder and CEO. “Their donation of compostable packaging allows us to operate more sustainably and redefine how we can impact the lives of the community we serve and the environment around us.”

    For more information, please visit www.goodstartpackaging.com/giving-back.

    # # #

    About Good Start Packaging

    Good Start Packaging is a leading supplier of compostable and eco-friendly packaging products for the foodservice industry. With warehouses in California and New Hampshire, Good Start Packaging serves clients across North America. To learn more, visit goodstartpackaging.com and follow @goodstartpackaging on Instagram.

    About Rethink Food

    Rethink Food is an NYC-based nonprofit organization with the mission of creating a more sustainable and equitable food system. In partnership with a network of local restaurants, community-based organizations, and food donors across the food system, Rethink Food has provided 23+ million meals to local communities facing food insecurity and directed over 95+ million dollars to small local restaurants and businesses. Since its creation in 2017, Rethink Food has also repurposed over 2.3 million pounds of excess food. To learn more, visit rethinkfood.org and follow @rethinkfood on Instagram and X.

    Source: Good Start Packaging

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  • Decoding the sustainability jargon in smartphone marketing efforts

    Decoding the sustainability jargon in smartphone marketing efforts

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    In today’s world where environmental consciousness and care are more important than ever, smartphone marketing efforts — from ads to packaging — have slowly but surely been integrating more and more buzzwords related to climate change and sustainability. After all, the information and communication technology (ICT) industry’s environmental footprint cannot be ignored.

    According to a 2023 press release from the International Telecommunication Union (ITU), the United Nations’ arm for ICT-related matters, the sector is estimated to be responsible for between 1.5 to 4% of global greenhouse gas (GHG) emissions. From the extraction of minerals from the Earth, the energy-intensive manufacturing processes for components, and even the logistics of shipping units from the factory to your doorstep: all these taken together equate to significant environmental impact. Not to mention the amount of e-waste produced yearly, which according to the United Nations Environment Programme (UNEP) amounts to around 54-million metric tonnes annually.

    How can we then discern whether the eco-friendly claims in smartphone marketing efforts are legit or just greenwashing? Arguably, this starts with knowing what the jargon actually means and how these apply in the context of smartphone production and usage. Let’s delve into some of the terminology and uncover how these concepts are applied in the tech industry’s pursuit of a greener tomorrow.

    Net zero, carbon neutral, and absolute zero, and carbon neutral

    While all refer to a state where there is virtually no more emissions — such as carbon dioxide, methane, or sulphur dioxide — attributable to activities, there are distinct differences. Net zero specifically refers to when companies reduce a major amount of its emissions within its value chain, with any remaining amount neutralized or balanced with equivalent GHG removal measures within a specified time period. Emissions can be reduced through means such as improving carbon sinks (such as forests, which remove carbon dioxide via photosynthesis) or capturing, storing, and then converting GHGs into fuel or energy. Hence the term “net”.

    ‘Carbon-neutral’ does not specifically pertain to avoiding emissions through GHG-free value chains. Rather, first, it is a term that only refers to carbon emissions. Second, companies aiming to be carbon neutral can still technically emit as much carbon as they want as long as they are able to offset the same amount of carbon inside or outside their value chain. Meanwhile, absolute zero refers to the complete absence of GHG emissions from human activities.

    Absolute zero is nigh impossible to achieve. As such, net zero and carbon neutrality is the more common goal for most companies inside and outside the tech industry. For smartphones, brands often aim to reduce emissions throughout the entire product lifecycle, from manufacturing to disposal. One of the ways they do this is by using renewable energy sources and using energy-efficient practices in their manufacturing facilities, recycled materials in product components, or producing more energy-efficient smartphones. For carbon offsetting, brands can also choose to invest in renewable energy projects that are not tied to their grid, embark on reforestation activities, or capture carbon dioxide from the air directly, among others.

    Sustainable packaging

    In addition to making the smartphone-making process as eco-friendly as possible, manufacturers have also started to package them in sustainable materials to further minimize their environmental impact and waste. These solutions include utilizing recycled, recyclable, or biodegradable materials, minimalistic box designs, using biodegradable soy ink for prints (which are more eco-friendly to produce and use), and removing plastic wrappings. The World Economic Forum in 2020 reported that over 400 million tonnes of plastic waste is produced yearly, and around 50% of that is from packaging. Using more sustainable packaging means less GHG emissions but also lessens tech-related waste leaking into the environment.

    Managing e-wastes

    According to a 2021 Deloitte article, most of a smartphone’s GHG emissions come from its creation. Meanwhile, Morgan Stanley reported that in 2020, the average lifespan of smartphones worldwide before they are replaced was just over 33 months. Therefore, ensuring that units are able to last for years at a time greatly contributes to lessening its environmental footprint per year. This could be achieved by making smartphones physically more durable, lessening the need to replace consumable parts or prematurely replacing the unit altogether, offering better and longer operating system support to ensure that it does not feel outdated even after years of use, and even establishing “certified refurbished programs” to give devices a new lease on life either in another market segment or another country.

    Understanding sustainability jargon such as the ones above is important for us consumers to better discern what a company is saying versus what it is actually doing in the fight against climate change. With the industry’s significant environmental footprint and the mounting challenges of e-waste, informed consumers can drive demand for truly sustainable practices, from production to packaging to end-of-life management. This awareness is an important first step towards shaping a greener future for all.

    Words by Chris Noel Hidalgo
    Also published in GADGETS MAGAZINE March 2024 Issue

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    Gadgets Magazine 4

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  • United pulls plans for Boeing’s biggest 737 Max jet after Max 9 groundings

    United pulls plans for Boeing’s biggest 737 Max jet after Max 9 groundings

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    United Airlines Holdings Inc. on Tuesday said it was rethinking its longer-term plans for Boeing’s biggest 737 Max jet, the Max 10, after the government’s grounding of dozens of Max 9s this month raised questions over whether the aircraft maker could still deliver planes on time.

    United
    UAL,
    +5.31%
    Chief Executive Scott Kirby said during the airline’s earnings call on Tuesday that it wasn’t canceling its orders for the Max 10. But he said the airline was taking the jet “out of our internal plans.”

    “We’ll be working on what that means exactly with Boeing,” he said. “But Boeing is not going to be able to meet their contractual deliveries on at least many of those airplanes.”

    United, during the call, said that it had 277 Max 10 jets on order for the rest of the decade. Of the 107 jets set for delivery this year, 31 were Max 9s. But Chief Financial Officer Michael Leskinen said was “unrealistic” to expect those jets to arrive as currently planned.

    “Look,” he said. “The reality is that with the with the Max grounding, this is the kind of straw that broke the camel’s back with believing that the Max 10 will deliver on the schedule we had hoped for.”

    He added: “It’s a great aircraft. But we can’t count on it. So we’re working on alternate plans.” 

    The decision on the Max 10 marks the latest blow to Boeing’s
    BA,
    -1.60%
    reputation, as safety concerns pile up after a panel tore off a 737 Max 9 jet flown by Alaska Airlines earlier this month.

    The Federal Aviation Administration grounded 171 Boeing 737 Max 9s for inspections, leading to scores of flight cancellations for both United and Alaska
    ALK,
    +2.87%    .
    United, when it reported fourth-quarter results on Monday, said it expected to lose money in the first quarter, following the impact of those cancellations. Still, shares were up on Tuesday on United’s full-year profit forecast.

    The FAA over the weekend also recommended that operators of Boeing’s 737-900ER planes “visually inspect mid-exit door plugs to ensure the door is properly secured.” Regulators around the world grounded the 737 Max in 2019 after two fatal crashes.

    Meanwhile, Ben Minicucci, the chief executive of Alaska Airlines, in an interview with NBC News published Tuesday, said inspectors found loose bolts on “many” of its Boeing 737 Max 9s after the mid-flight blowout.

    “I’m more than frustrated and disappointed,” he said in that interview. “I am angry. This happened to Alaska Airlines. It happened to our guests and happened to our people. And my demand on Boeing is, what are they going to do to improve their quality programs in-house?”

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  • Hang Seng leads selloff for Asia stocks, with 4% slump after China data

    Hang Seng leads selloff for Asia stocks, with 4% slump after China data

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    TOKYO (AP) — Asian shares slid Wednesday after a decline overnight on Wall Street and disappointing China growth data, while Tokyo’s main benchmark momentarily hit another 30-year high.

    Japan’s benchmark Nikkei 225
    NIY00,
    -0.95%
    reached a session high of 36,239.22, but reverted lower, last down 0.3% to 35,477. The Nikkei has been hitting new 34-year highs, or the best since February 1990 during the so-called financial bubble. Buying focused on semiconductor-related shares, and a cheap yen helped boost exporter issues.

    Don’t miss: Wall Street firms catch up to Buffett enthusiasm on Japan as Nikkei keeps hitting records

    Hong Kong’s Hang Seng
    HK:HSCI
    tumbled 4% to 15,220.72, with losses building after data showed China hitting its economic growth target of 5.2% for 2023, surpassing government expectations, but short of the 5.3% some analysts expected. The Shanghai Composite
    CN:SHCOMP
    shed 2% to 2,833.62.

    Read on: China hit its economic-growth target without ‘massive stimulus,’ boasts Premier Li Qiang

    Australia’s S&P/ASX 200
    AU:ASX10000
    slipped 0.2% to 7,401.30. South Korea’s Kospi
    KR:180721
    dropped 2.4% to 2,435.90.

    Investors were keeping their eyes on upcoming earnings reports, as well as potential moves by the world’s central banks, to gauge their next moves.
    Wall Street slipped in a lackluster return to trading following a three-day holiday weekend.

    See: What’s next for stocks as ‘tired’ market stalls in 2024 ahead of closely watched retail sales

    The S&P 500
    SPX
    fell 17.85 points, or 0.4%, to 4,765.98. The Dow Jones Industrial Average
    DJIA
    dropped 231.86, or 0.6%, to 37,361.12, and the Nasdaq
    COMP
    sank 28.41, or 0.2%, to 14,944.35.

    Spirit Airlines
    SAVE,
    -47.09%
    lost 47.1% after a U.S. judge blocked its takeover by JetBlue Airways
    JBLU,
    +4.91%
    on concerns it would mean higher airfares for flyers. JetBlue rose 4.9%.

    Stocks of banks were mixed, meanwhile, as earnings reporting season ramps up for the final three months of 2023. Morgan Stanley
    MS,
    -4.16%
    sank 4.2% after it said a legal matter and a special assessment knocked $535 million off its pretax earnings, while Goldman Sachs
    GS,
    +0.71%
    edged 0.7% higher after reporting results that topped Wall Street’s forecasts.

    Companies across the S&P 500 are likely to report meager growth in profits for the fourth quarter from a year earlier, if any, if Wall Street analysts’ forecasts are to be believed. Earnings have been under pressure for more than a year because of rising costs amid high inflation.

    But optimism is higher for 2024, where analysts are forecasting a strong 11.8% growth in earnings per share for S&P 500 companies, according to FactSet. That, plus expectations for several cuts to interest rates by the Federal Reserve this year, have helped the S&P 500 rally to 10 winning weeks in the last 11. The index remains within 0.6% of its all-time high set two years ago.

    Treasury yields
    BX:TMUBMUSD10Y
    have already sunk on expectations for upcoming cuts to interest rates, which traders believe could begin as early as March. It’s a sharp turnaround from the past couple years, when the Federal Reserve was hiking rates drastically in hopes of getting high inflation under control.

    The Tell: No rate cuts in 2024? Why investors should think about the ‘unthinkable.’

    Easier rates and yields relax the pressure on the economy and financial system, while also boosting prices for investments. And for the past six months, interest rates have been the main force moving the stock market, according to Michael Wilson, strategist at Morgan Stanley.

    He sees that dynamic continuing in the near term, with the “bond market still in charge.”

    For now, traders are penciling in many more cuts to rates through 2024 than the Fed itself has indicated. That raises the potential for big market swings around each speech by a Fed official or economic report.

    Yields rose in the bond market after Fed governor Christopher Waller said in a speech that “policy is set properly” on interest rates. Following the speech, traders pushed some bets for the Fed’s first cut to rates to happen in May instead of March.

    On Wall Street, Boeing fell to one of the market’s sharper losses as worries continue about troubles for its 737 Max 9 aircraft following the recent in-flight blowout of an Alaska Air
    ALK,
    -2.13%
    jet. Boeing
    BA,
    -7.89%
    lost 7.9%.

    In energy trading, benchmark U.S. crude
    CL00,
    -1.55%
    lost 90 cents to $71.75 a barrel. Brent crude
    BRN00,
    -1.37%    ,
    the international standard, fell 78 cents to $77.68 a barrel.

    In currency trading, the U.S. dollar
    USDJPY,
    +0.44%
    rose to 147.90 Japanese yen from 147.09 yen. The euro
    EURUSD,
    -0.10%
    cost $1.0868, down from $1.0880.

    MarketWatch contributed to this report

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  • Boeing 737 MAX 9 Issue Isn’t Going Away Soon. What to Know Before Buying the Stock.

    Boeing 737 MAX 9 Issue Isn’t Going Away Soon. What to Know Before Buying the Stock.

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    As Boeing stock enters its second week of volatile trading following the 737 MAX 9 accident, and it’s still not quite clear whether its shares have been punished enough—or if there is more pain ahead.

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  • U.S. stocks little changed in cautious trading ahead of inflation report, bank earnings

    U.S. stocks little changed in cautious trading ahead of inflation report, bank earnings

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    U.S. stock indexes were edging higher on Wednesday with technology stocks looking to extend gains ahead of the December inflation report, which is expected to shed more direct light on when the Federal Reserve could dial back its two-year-long effort to tighten monetary policy and cool the economy.

    How are stock indexes trading

    • The S&P 500
      SPX
      rose 8 points, or 0.2%, to 4,764

    • The Dow Jones Industrial Average
      DJIA
      was up 38 points, or 0.1%, to 37,562

    • The Nasdaq Composite
      COMP
      gained 43 points, or 0.3%, to 14,901.

    On Tuesday, the Dow industrials fell 0.4%, to 37,525, while the S&P 500 declined 0.2%, to 4,757, and the Nasdaq Composite gained less than 0.1%, to 14,858.

    What’s driving markets

    Inflation and its impact on bond markets and the Federal Reserve’s monetary-policy trajectory are the primary focus for markets this week as investors remain on hold ahead of Thursday’s December inflation reading and high-profile corporate earnings reports on Friday, when some of the big banks will kick off the fourth-quarter 2023 earnings season.

    The S&P 500 sits less than 0.7% shy of its record high of 4796.6 touched a little over two years ago, after rallying strongly in the last few months primarily on hopes that easing inflation will allow the Fed to lower interest rates sooner and faster than the markets previously anticipated.

    The yield on the 10-year Treasury
    BX:TMUBMUSD10Y,
    the benchmark for borrowing costs, has fallen from 5% in October to 4.014% on Wednesday.

    But for this bullish narrative to play out, inflation must be seen continuing to fall back to the central bank’s 2% target. That’s why great importance is therefore being placed on the consumer-price index for December, which will be published at 8:30 a.m. Eastern on Thursday.

    See: These traders bet on surprise blip higher in key December inflation reading

    Economists forecast that annual headline CPI inflation inched up to 3.2% last month from 3.1% in November. The core reading, which strips out more volatile items like food and energy, is expected to fall from 4% to 3.8%.

    Adam Phillips, director of portfolio strategy at EP Wealth Advisors, said the CPI report may give investors enough confidence that the disinflation is likely to continue, even if the price levels are “still a very long way from anything that is considered healthy.”

    However, he cautioned that the economy has “certain factors” that are beyond the Fed’s control, such as the volatility in supply chains and growing geopolitical risks, as well as a potential resurgence in inflation, he told MarketWatch via phone on Wednesday.

    “[E]quities have remained broadly range-bound since just before Christmas, with little to push them in either direction,” said Jim Reid, strategist at Deutsche Bank.

    “That might change soon, since we’ve got the U.S. CPI print tomorrow, and then the start of earnings season on Friday, but for now at least, there’s been few headlines for investors to latch onto, just a bit of indigestion after over exuberance before New Year left markets with a little bit of an extended hangover,” Reid added.

    In U.S. economic data, the wholesale inventories declined 0.2% in November, in line with Wall Street expectations, as manufacturers continue to juggle with a fragile economy, according to the Commerce Department.

    New York Fed President John Williams will speak in White Plains, N.Y., at 3:15 p.m. Eastern time.

    Companies in focus

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  • Boeing’s financials won’t be hurt by latest 737 Max issues, analysts say. The company’s size is one reason.

    Boeing’s financials won’t be hurt by latest 737 Max issues, analysts say. The company’s size is one reason.

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    Alaska Airlines, United Airlines and Turkish Airlines have all grounded their Boeing 737 Max 9 airplanes after part of one such jet tore away during an Alaska Airlines flight on Friday. But despite the potential safety risks for travelers and further damage to Boeing’s
    BA,
    -8.03%
    reputation, some Wall Street analysts, for now, have downplayed the financial impact for the jet maker.

    In part, they pointed to the company’s status as one of two major players in aircraft production — the other being Airbus
    EADSY,
    +3.52%    .
    They also cited a tighter supply of available aircraft and limited near-term impact, at least while investigators try to figure out the cause of the incident.

    Those airlines and others took the action over the weekend after a panel on a jet blew out about 10 minutes into Alaska Airlines Flight 1282 at an altitude of about 16,000 feet.

    No one died in the incident. But the Federal Aviation Administration ordered the temporary grounding of certain Boeing 737 Max 9 aircraft. The order covered 171 planes.

    Shares of Boeing fell 8.2% as the stock weighed on the Dow Jones Industrial Average
    DJIA.

    Still, some Wall Street analysts on Monday said to buy the stock anyway. They said the latest difficulties with the aircraft — which follow the 2019 grounding of Max jets by many nations following two fatal crashes — were unlikely to have a big near-term financial impact.

    BofA analysts, in a research note dated Sunday, said that “at this point in time, due to the duopoly nature of the industry, we do not see this impacting orders for any of the 737 MAX variants. However, if the hits to the program do keep coming … at some point, the flying public may lose confidence in the 737 MAX which could ultimately impact sales.”

    The analysts said it wasn’t clear yet whether the blowout on Friday was due to an assembly mistake at Boeing, an improper installation from fuselage maker Spirit AeroSystems or oversight issues elsewhere. But they noted that the aircraft was relatively new, having been delivered on Oct. 31. And they said that “some scrutiny must be saved for regulators as well, as the FAA is ultimately responsible for certificating these aircraft before delivery.”

    Spirit AeroSystems’ stock
    SPR,
    -11.13%
    was down 11%.

    Analysts at William Blair also said they didn’t expect a big hit to Boeing’s financials.

    “While the Alaska Airlines door plug accident was terrifying, we do not believe that it will have a major financial impact, unless another incident occurs after the aircraft returns to service,” they said in a note on Monday.

    Analysts there estimated that over the past two months, the Max 9 made up less than one-fifth of Boeing’s total deliveries. They said those deliveries would only be “modestly impacted over the first quarter as it could take some time to determine the cause.”

    Of the 23 analyst ratings on Boeing’s stock tracked by FactSet, 18 are buy ratings or the equivalent.

    Read more: How Boeing’s latest 737 Max problem is hurting the Dow

    However, Morgan Stanley analyst Ravi Shanker said the 737 Max 9 issues will likely disrupt first-quarter results for United Airlines
    UAL,
    +2.78%
    and Alaska Air
    ALK,
    -0.21%    .

    “This will hopefully be a situation resolved in days/weeks rather than months, but it will also serve as a reminder of how fragile airline capacity can be despite the overhang of capacity,” Shanker said in a Monday research note.

    United Airlines’ stock rose 2.4% on Monday, while Alaska Air’s dipped by 0.3%.

    Along with United Airlines, Alaska Airlines and Turkish Airlines, Copa Airlines and Aeromexico grounded about 40 Boeing 737 Max 9 planes, according to reports.

    According to Deutsche Bank analysts, the affected fleet accounts for 16.1% of Alaska Airlines flights and 6.6% of United flights, although United has more 737 Max 9 aircraft than Alaska.

    Other airlines with the plane in their fleet include Jet Airways of India with one plane, Jin Air of Korea with three, KLM Royal Dutch Airlines
    KLMR,

    with five and Korean Air Lines
    003490,
    -1.52%
    with nine, according to Planespotter.net.

    European regulators also grounded the 737 Max 9 for inspection.

    Some major airlines do not have any 737 Max 9s in their fleets, including American Airlines
    AAL,
    +7.21%    ,
    Southwest Airlines
    LUV,
    -0.10%
    and Air Canada
    AC,
    +3.42%    ,
    according to reports.

    Also read: Shares in Boeing slump, supplier Spirit AeroSystems tanks, after panel blows out

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  • Alaska Airlines grounds all Boeing 737-9 Max planes after flight suffers midair window blowout

    Alaska Airlines grounds all Boeing 737-9 Max planes after flight suffers midair window blowout

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    Alaska Airlines grounded all of its Boeing 737-9 aircraft late Friday, hours after a window and piece of fuselage on one such plane blew out in midair and forced an emergency landing in Portland, Oregon.

    The incident occurred shortly after takeoff and the gaping hole caused the cabin to depressurize. Flight data showed the plane climbed to 16,000 feet (4,876 meters) before returning to Portland International Airport.

    The airline
    ALK,
    +3.10%
    said the plane landed safely with 174 passengers and six crew members.

    “Following tonight’s event on Flight 1282, we have decided to take the precautionary step of temporarily grounding our fleet of 65 Boeing 737-9 aircraft,” Alaska Airlines CEO Ben Minicucci said in a statement.

    Each of the aircraft will be returned to service after full maintenance and safety inspections, which Minicucci said the airline anticipated completing within days.

    The airline provided no immediate information about whether anyone was injured or the possible cause.

    The plane was diverted about about six minutes after taking off at 5:07 p.m., according to flight tracking data from the FlightAware website. It landed at 5:26 p.m.

    The pilot told Portland air traffic controllers the plane had an emergency, was depressurized and needed to return to the airport, according to a recording made by the website LiveATC.net.

    A passenger sent KATU-TV in Portland a photo showing the hole in the side of the airplane next to passenger seats. Video shared with the station showed people wearing oxygen masks and passengers clapping as the plane landed.

    The National Transportation Safety Board said in a post on X, formerly known as Twitter, that it was investigating an event on the flight and would post updates when they are available. The Federal Aviation Administration also said it would investigate.

    The Boeing 737-9 MAX involved in the incident rolled off the assembly line and received its certification just two months ago, according to online FAA records.

    The plane had been on 145 flights since entering commercial service on Nov. 11, said FlightRadar24, another tracking service. The flight from Portland was the aircraft’s third of the day.

    Boeing
    BA,
    +1.66%
    said it was aware of the incident, working to gather more information and ready to support the investigation.

    The Max is the newest version of Boeing’s venerable 737, a twin-engine, single-aisle plane frequently used on U.S. domestic flights. The plane went into service in May 2017.

    Two Max 8 jets crashed in 2018 and 2019, killing 346 people and leading to a near two-year worldwide grounding of all Max 8 and Max 9 planes.

    The planes returned to service only after Boeing made changes to an automated flight control system implicated in the crashes.

    Last year, the FAA told pilots to limit use of an anti-ice system on the Max in dry conditions because of concern that inlets around the engines could overheat and break away, possibly striking the plane.

    Max deliveries have been interrupted at times to fix manufacturing flaws. The company told airlines in December to inspect the planes for a possible loose bolt in the rudder-control system.

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  • Nikki Haley says GOP rivals are 'just jealous' about her corporate supporters

    Nikki Haley says GOP rivals are 'just jealous' about her corporate supporters

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    Republican presidential hopeful Nikki Haley pushed back when pressed at Wednesday’s primary debate on whether she’s too tight with billionaires and corporate interests, saying those supporters won’t affect her stances on key issues.

    “When it comes to these corporate people that want to suddenly support us, we’ll take it, but I don’t ask them what their policies are. They ask me what my policies are, and I tell them,” said Haley, a former ambassador to the U.N. and former South Carolina governor.

    “Sometimes they agree with me, sometimes they don’t,” she added. “Some don’t like how tough I am on China. Some don’t like the fact that I’ve signed pro-life bills. Some don’t like the fact that I may oppose corporate bailouts.”

    Also see: Republican debate: Chris Christie says Trump’s China tariffs helped drive inflation

    GOP rival Vivek Ramaswamy attacked Haley over her time on Boeing’s
    BA,
    +1.17%
    board of directors and the money she’s received from Silicon Valley billionaire Reid Hoffman.

    “Nikki, you were bankrupt when you left the U.N.,” the entrepreneur said. “Now you’re a multimillionaire. That math does not add up. It adds up to the fact that you are corrupt.”

    Florida Gov. Ron DeSantis criticized her as well, saying: “These Wall Street liberal donors, they make money in China. They are not going to let her be tough on China, and she will cave to the donors.”

    Presidential hopeful Vivek Ramaswamy holds up a sign that accuses rival Nikki Haley of being corrupt as he speaks during the fourth Republican presidential primary debate at the University of Alabama in Tuscaloosa.


    AFP via Getty Images

    Haley, meanwhile, said she wasn’t bankrupt after her stint as ambassador, but rather she and her husband had been in public service. She also spoke highly of Boeing, but noted she left the airplane maker’s board because she didn’t support its efforts to get a bailout during the COVID-19 pandemic.

    “In terms of these donors that are supporting me, they’re just jealous,” Haley added, referring to DeSantis and Ramaswamy. “They wish that they were supporting them.”

    The comments came Wednesday night at the 2024 Republican presidential primary’s fourth debate, held at the University of Alabama. Besides DeSantis, Haley and Ramaswamy, former New Jersey Gov. Chris Christie also took part in the clash.

    The primary’s frontrunner, former President Donald Trump, skipped the debate, just as he steered clear of the previous three.

    Related: Nikki Haley has ‘all of the momentum’ as the latest Republican debate hits but faces uphill battle to topple Trump

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  • Dow Jones slips after strong run as inflation data looms

    Dow Jones slips after strong run as inflation data looms

    [ad_1]

    U.S. edged lower early Monday ahead of important inflation data in coming days, while gauging the possibility of a shutdown of the federal government at the end of the week.

    What’s happening

    • The Dow Jones Industrial Average
      DJIA
      was down 42 points, or 0.1%, at 34,242.

    • The S&P 500
      SPX
      fell 19 points, or 0.4%, to 4,396.

    • The Nasdaq Composite
      COMP
      shed 93 points, or 0.7%, to 13,705.

    The Dow, S&P 500 and Nasdaq Composite rose Friday to score back-to-back weekly gains.

    What’s driving markets

    The S&P 500 has jumped 7.2% over the past two weeks, helped by benchmark borrowing costs
    BX:TMUBMUSD10Y
    falling swiftly from 16-year highs on hopes that recent softer jobs data means inflation can ease further and the Federal Reserve has thus finished its campaign of interest rate rises.

    However, after that strong rally a more cautious tone prevails at the start of the new week as the market awaits a U.S. consumer-price index report for October, due Tuesday, that thus has the heft to underpin the latest bull run or bring it to a halt.

    Read: Stock-market rally faces make-or-break moment. How to play U.S. October inflation data.

    Core CPI growth — which strips out volatile items such as food and energy — is expected to remain steady at 0.3% month-on-month. The producer prices report for October will be published on Wednesday.

    See: This week’s October inflation data looms large on Washington’s economic radar

    October retail sales data is also on the docket this week, offering further clues to the health of the consumer on Wednesday.

    “Most eyes will be focused on the latest inflation numbers, but retail sales and retail earnings will also help set the tone,” Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley, said in emailed comments.

    He warned that the market “may be a little more jittery than usual,” following a downgrade of the U.S. credit outlook by Moody’s Investors Service and the possibility of a shutdown of the federal government at the end of the week.

    Also see: House Republicans look to pass two-step package to avoid partial government shutdown

    Worries over a dysfunctional government contributed to Moody’s Investors Service late Friday cutting its outlook on the U.S. sovereign credit rating to negative from stable.

    “This week, we will plunge back into the U.S. political saga, as the government short-term funding deadline is due 17th of November and not much progress has been made to seal a fresh deal,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

    “Depending on the new funding resolution – or the lack thereof – we could see the U.S. 10-year yield return above 4.80%,” Ozkardeskaya added.

    Investors will also be keeping an eye out for a slew of earnings reports from retailers, including Home Depot Inc.
    HD,
    -1.24%
    on Tuesday, Target Corp.
    TGT,
    -0.50%
    on Wednesday and Walmart Inc.
    WMT,
    +0.15%
    on Thursday. Their comments on the health of the consumer may also play into thinking on the Fed.

    Indeed, the earnings season in general should have provided fundamental support to investor sentiment, according to analysts. “For Q3 2023, with 92% of S&P 500 companies reporting actual results, 81%…have reported a positive earnings per share surprise and 61%…have reported a positive revenue surprise,” said John Butters, senior earnings analyst at FactSet.

    The U.S. federal budget update for October will be published at 2 p.m. Eastern. Fed Governor Lisa Cook was due to deliver opening remarks at a Fed conference Monday morning.

    Companies in focus

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  • United Airlines’ stock falls after bleak outlook for end of the year

    United Airlines’ stock falls after bleak outlook for end of the year

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    United Airlines Holdings Inc. reported third-quarter earnings late Tuesday that were better than Wall Street expected, but the airline’s stock fell as the company called for lower profits later in the year.

    United
    UAL,
    +1.49%
    earned $1.1 billion, or $3.42 a share, in the quarter, compared with $942 million, or $2.86 a share, in the same quarter a year earlier. Adjusted for one-time items, the airline earned $3.65 a share.

    Sales rose to $14.5 billion from $12.9 billion a year ago.

    Analysts polled by FactSet expected United to report adjusted earnings of $3.38 a share on sales of $14.4 billion.

    United said it expects fourth-quarter earnings of about $1.80 a share if flights to Tel Aviv are suspended through October, and of around $1.50 a share if the Tel Aviv flights are suspended through the end of the year. The Israel-Hamas war has raged for a little over a week.

    Wall Street forecast fourth-quarter earnings of $2.09 a share. United’s stock dropped more than 4% in the extended session Tuesday after ending the regular trading day up 1.5%.

    The airline also called for pricier jet fuel for the fourth quarter, seeing a gallon going for $3.28 on average by that time. That compares with a third-quarter fuel average price of $2.95 a gallon.

    Fourth-quarter operating revenues are seen 10% higher year-on-year, and 9% higher if the Tel Aviv flights are still halted through the end of 2023. The FactSet analysts are calling for fourth-quarter revenue of $13.6 billion, from $12.4 billion in the fourth quarter of 2022.

    United earlier this month said it placed orders for an additional 110 new jets from Boeing Co.
    BA,
    +0.36%
    and Airbus SE
    AIR,
    +3.55%
    as it expected air-travel demand to continue unabated.

    The airline in 2021 launched its United Next plan, promising more savings by using newer, more fuel-efficient jets. These newer planes often offer premium seating, allowing the airline to sell more profitable, rarely discounted first-class and business seats.

    United’s stock has gained 7% so far this year, compared with an advance of about 14% for the S&P 500 index
    SPX.

    United is slated to hold a conference call to discuss the third-quarter results and the update through the end of the year on Wednesday at 10:30 a.m. Eastern.

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  • Boeing Stock Drops. This Nagging Problem Is Growing.

    Boeing Stock Drops. This Nagging Problem Is Growing.

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    A persistent 737 MAX problem for is growing, which sent the stock lower in early trading Friday.

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  • Smurfit Kappa Smurfit WestRock to Be Led by Tony Smurfit as CEO

    Smurfit Kappa Smurfit WestRock to Be Led by Tony Smurfit as CEO

    [ad_1]

    By Ian Walker

    Smurfit Kappa Group and WestRock Co. have formally signed a merger agreement as first outlined last week, creating a global paper and packaging powerhouse worth some $20 billion.
    

    As announced on Sept. 7 a new company–Smurfit WestRock–will be created with a main listing on the New York Stock Exchange and a standard listing in London.
    

    

    Smurfit WestRock will be led by Tony Smurfit as chief executive and Irial Finan as chair, the companies said.
    

    Under the deal accepting WestRock shareholders will get one new Smurfit WestRock share and $5.00 in cash, equivalent to $43.51 a share.
    

    Upon completion Smurfit Kappa shareholders will own 50.4% of the combined business with WestRock owning the rest.
    

    “Smurfit WestRock will be the ‘Go-To’ packaging partner of choice for customers, employees and shareholders. We will have the leading assets, a unique global footprint in both paper and corrugated, a superb consumer and specialty packaging business, significant synergies, and enhanced scale to deliver value in the short, medium and long term,” Smurfit Kappa Chief Executive Tony Smurfit said.
    

    Write to Ian Walker at ian.walker@wsj.com
    

    

    

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  • 
		
		
    
			
    Durable-goods orders rise for third month in a row — if Boeing is taken out of the equation
    
			
    Durable-goods orders rise for third month in a row — if Boeing is taken out of the equation
    
			
     [ad_1]
    

    

    The numbers: Orders for long-lasting goods rose in July for the third month in a row if recent ups and downs at Boeing are set aside, suggesting the struggling industrial side of the U.S. economy may have stabilized.
    

    Durable-goods orders increased 0.5% in July if transportation — automobiles and planes — are excluded. Boeing
    
        BA,
    
        -3.16%
    
       orders often seesaw in the summer months and distort the true condition of U.S. manufacturing. 
    

    

    Headline orders, which include transportation, sank by 5.2% last month, the government said Thursday.
    

    Economists polled by the Wall Street Journal had forecast a 4.1% drop in July following a 4.4% spike in June. The topsy-turvy results in the past two months are almost entirely due to Boeing.
    

    A better measure of the health of U.S. manufacturing, known as core orders, edged up 0.1% in July. That figure omits defense and transportation and is a proxy for broader business investment.
    

    Business investment is running slightly ahead of last year’s pace, but it has weakened considerably, and many manufacturers are treading water.
    

    Key details: Orders for commercial planes soared 71% in June and sank 44% in July, explaining the wildly divergent headline numbers in the past two months.
    

    Orders for new cars rose 0.8% in July.
    

    The transportation segment is a large and volatile category that often exaggerates the ups and downs in manufacturing.
    

    Outside the transportation sector, new orders rose in most major categories.
    

    Business investment has tapered off since last year, however, and companies have become more cautious in the face of rising interest rates, still-high inflation and a shift in consumer spending toward services.
    

    Durable goods are items like planes, cars, appliances and computers. Orders rise in an expanding economy and shrink in a contracting one.
    

    Big picture: Maybe the industrial side of the economy has hit bottom, and maybe it hasn’t. Getting a clear picture might have to wait until interest rates stop rising. 
    

    Higher borrowing costs typically stunt the economy and discourage businesses from hiring, spending and investing.
    

    Looking ahead: “Businesses are showing caution amidst the higher rate environment and what it means for demand down the line,” said economist Ali Jaffery at CIBC Economics.
    

    Market reaction: The Dow Jones Industrial Average
    
        DJIA,
    
        +0.28%
    
       and S&P 500
    
        SPX,
    
        +0.24%
    
       were set to open mixed  in Thursday trades. 
    

    

    

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  • 
		
		
    
			
    Nasdaq futures jump after Nvidia results impress, while Dow futures flatline
    
			
    Nasdaq futures jump after Nvidia results impress, while Dow futures flatline
    
			
     [ad_1]
    

    

    U.S. stock futures jump early Thursday as sparking Nvidia results boost risk appetite.
    

    How are stock-index futures trading
    

      

    • 
      S&P 500 futures
      
        ES00,
      
        +0.52%
      
       rose 29 points, or 0.6%, to 4476
      

      • 

    • 
      Dow Jones Industrial Average futures
      
        YM00,
      
        -0.11%
      
       dipped 6 points, or 0.0%, to 34516
      

      • 

    • 
      Nasdaq 100 futures
      
        NQ00,
      
        +1.15%
      
       added 210 points, or 1.4%, to 15405
      

      • 

    

    On Wednesday, the Dow Jones Industrial Average
    
        DJIA
    
       rose 184 points, or 0.54%, to 34473, the S&P 500
    
        SPX
    
       increased 48 points, or 1.1%, to 4436, and the Nasdaq Composite
    
        COMP
    
       gained 215 points, or 1.59%, to 13721.
    

    

    What’s driving markets
    

    Well-received earnings from AI chipmaker Nvidia
    
        NVDA,
    
        +3.17%
    
       has triggered a bout of risk-on activity across markets. Futures indicate the tech-heavy Nasdaq 100 will open up 1.4% as Nvidia’s stock jumps 8% in premarket action.
    

    “The market expectations were sky-high, the results went to the moon,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “The Nvidia news has [had] a boosting effect on technology stocks…by confirming that all the talk around the AI-craze was not empty, after all.”
    

    Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, agreed: “Nvidia smashing the forecast ceiling has also lifted the mood elsewhere.”
    

    Shares of Palantir Technologies
    
        PLTR,
    
        +4.29%    ,
    
       Advanced Micro Devices
    
        AMD,
    
        +3.57%
    
       and OpenAI investor Microsoft
    
        MSFT,
    
        +1.41%
    
       rose in premarket action. 
    

    Dow Jones Industrial Average futures underperformed as shares in Boeing
    
        BA,
    
        -0.65%
    
       fell nearly 2% on news of a defect identified on the 737 Max aircraft.
    

    Falling implied borrowing costs were also helping the mood Thursday. The benchmark 10-year U.S. Treasury yield, which earlier this week hit a near 16-year peak of 4.36% has pulled back to 4.178% after survey’s of economic activity in Europe and the U.S., released Wednesday, suggested a deteriorating global economy.
    

    “The rally in U.S. stocks and the retreat of Treasury yields followed underwhelming economic reports as the market fell back into the ‘bad news is a good’ mode,” said Stephen Innes, managing partner at SPI Asset Management. 
    

    “But encouragingly for equity investors, the weaker U.S. data lens more weight to the argument for the Federal Reserve to pause its interest rate hikes,” Innes added.
    

    With that in mind traders will have an eye on the Jackson Hole economic policy symposium, which begins Thursday, and which on Friday is expected to deliver a speech by Fed Chair Jerome Powell.
    

     U.S. economic updates set for release on Thursday include the weekly initial jobless claims and durable goods orders for July, both due at 8;30 a.m. Eastern. 
    

    

    

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  • 
		
		
    
			
    Want companies to lower their prices? Stop buying stuff from them.
    
			
    Want companies to lower their prices? Stop buying stuff from them.
    
			
     [ad_1]
    

    The thing that will make companies lower prices is if consumers stop complaining about paying more for the things they need and want, and actually start refusing to buy them.
    

    As the U.S. corporate earnings-reporting season progresses, with earnings from major retailers Walmart Inc.
    
        WMT,
    
        +0.59%    ,
    
       Target Corp.
    
        TGT,
    
        +0.10%
    
       and Home Depot Inc.
    
        HD,
    
        +0.52%
    
       on tap next week, investors can get a ground-floor view of how consumer demand may have been hurt, or not, by higher prices, and what the companies plan to do, or not do, about it.
    

    

    This dynamic of how consumers adjust their spending habits when prices change is referred to by economists as the price elasticity of demand.
    

    

              
    

    

    
        “ For companies to cut prices, ‘you have to have the consumer go on strike, and they’re not there yet.’”
      
    

            
    
          — Jamie Cox, Harris Financial Group 
    
        
    

    

    Those who trust companies will choose to ratchet down prices on their own, or at least not raise them because the rise in input costs has been slowing, haven’t been listening to what the many companies have told analysts on their post-earnings-report conference calls.
    

    Read: U.S. inflation eases again, PCE shows. Prices rise at slowest pace in almost two years.
    

    Kraft Heinz Co.
    
        KHC,
    
        +0.47%
    
       acknowledged after its second-quarter report that its relatively higher prices have hurt demand, but not by enough for the food and condiments company to consider cutting prices.
    

    Colgate-Palmolive Co.
    
        CL,
    
        +0.81%
    
       said it will continue to raise prices, even as inflation slows and selling volume declines, as the consumer-products company continues to be laser focused on boosting margins and profits.
    

    And while PepsiCo Inc.
    
        PEP,
    
        +0.16%
    
       was worried that elasticities would increase, given how its lower-income customers were being particularly pressured by inflation, the beverage and snack giant reported strong results as it witnessed “better elasticities” in most of the markets in which it operated.
    

    “Obviously, there is still carryover pricing, and I don’t think we’ll do anything different than our normal cycles on pricing in the balance of the year,” PepsiCo Chief Financial Officer Hugh Johnston told analysts, according to an AlphaSense transcript.
    

    Basically, as MarketWatch has reported, so-called greedflation is alive and well.
    

    Jamie Cox, managing partner for Harris Financial Group, said as long as the job market stays strong, as it is now, corporate greed will continue to pay off.
    

    “If something is more expensive, and you have a job, you’ll complain about it, but you won’t substitute it for something cheaper,” Cox said. For companies to cut prices, “you have to have the consumer go on strike, and they’re not there yet,” Cox added.
    

    

              
    

    

    
        “ ‘At some point, people are going to say, “All right — enough.” ’  ”
      
    

            
    
          — Paul Nolte, Murphy & Sylvest Wealth Management 
    
        
    

    

    The reason elasticity is so important in the current environment is that, as long as consumers continue to pay the higher prices companies are charging, inflation will remain stubbornly high, making it, in turn, more likely that the Federal Reserve will continue to raise interest rates or, at the very least, not lower them.
    

    But the longer interest rates stay high enough to crimp economic growth, the more likely the stock market will reverse lower as recession fears rise.
    

    “At some point, people are going to say, ‘All right — enough,’ ” said Paul Nolte, senior wealth manager and market strategist at Murphy & Sylvest Wealth Management. “But we just haven’t seen that yet.”
    

    What is elasticity?
    

    Economists use the term “price elasticity of demand” to refer to the way in which consumers adjust their spending habits when prices change. 
    

    “Elasticity tries to measure how much more producers will want to produce if prices rise, and how much more consumers will want to buy if prices fall,” explained Bill Adams, chief economist at Comerica.
    

    Elasticity often depends on the type of product a company sells.
    

    For example, consumer-discretionary-goods companies that sell products and services that people want will often experience greater price elasticity than consumer-staples companies that sell things that people need, such as groceries and prescription drugs.
    

    But even for needs, consumers often still have a choice, as less expensive generic, or private-label, alternatives may be available.
    

    Andre Schulten, chief financial officer of consumer-staples maker Procter & Gamble Co.
    
        PG,
    
        +0.58%    ,
    
       which recently beat earnings expectations as it continued to raise prices, telling analysts that, while there was “some trading into private label,” the overall market share of private-label products was unchanged for the year.
    

    As Harris Financial’s Cox said, consumers may be complaining about higher prices, but they aren’t yet desperate enough to stop buying.
    

    The Federal Reserve’s latest Beige Book economic survey stated that business contacts in some districts had observed a “reluctance” to raise prices as consumers appeared to have grown more sensitive to prices, but other districts reported “solid demand” allowed companies to maintain prices and profitability.
    

    That’s likely why companies and analysts have become less concerned about price elasticity. Based on a FactSet analysis, mentions of the word “elasticity” in press releases and conference calls of S&P 500 companies
    
        SPX
    
       increased as inflation and interest rates started surging in early 2022 through the end of the year.
    

    With inflation trends softening this year, the Fed took a brief pause in raising rates in June, helping fuel further stock-market gains, before raising rates again in July.
    

    

              
    

    

    

    Mentions of the word elasticity in earnings press releases and conference-call transcripts of S&P 500 companies.
    

          
    
            FactSet
    
          
    
  
    

    

    As the chart shows, “elasticity” popped up in more than 55% of earnings releases and conference calls in mid-2022, but with the second-quarter 2023 earnings-reporting season more than half over, mentions had dropped to about 20%.
    

    Perhaps that will pick up, as retailers, especially those catering to lower-income customers — recall the PepsiCo comment — assess the demand impact of continued price increases.
    

    Meanwhile, the branded-foods company Conagra Brands Inc.
    
        CAG,
    
        +0.71%    ,
    
       whose wide-ranging food brands including Birds Eye, Duncan Hines, Hunt’s, Orville Redenbacher’s and Slim Jim, were starting to see the emergence of a different dynamic.
    

    Chief Executive Sean Connolly said consumers were shifting behavior in some categories as prices remained high. Rather than trade down to lower-priced alternatives, he noticed some consumers buying fewer items overall, “more of a hunkering down than a trading down.”
    

    That’s exactly the kind of consumer behavior that is needed, if companies are to stop feeding into the greedflation phenomenon and to start pulling back on prices.
    

    

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  • 
		
		
    
			
    U.S. stocks drift higher as tech earnings, Fed rate decision loom
    
			
    U.S. stocks drift higher as tech earnings, Fed rate decision loom
    
			
     [ad_1]
    

    

    U.S. stocks were modestly higher on Tuesday as the Dow’s winning streak continued for now, while investors waited for big tech company earnings after the bell and the Federal Reserve’s interest rate decision on Wednesday.   
    

    How stocks are trading
    

      

    • 
      The S&P 500 climbed 5 points, or 0.1%, to 4,560
      

      • 

    • 
      The Dow Jones Industrial Average gained 12 points, or 0%, to 35,423
      

      • 

    • 
      The Nasdaq Composite increased 51 points, or 0.3%, to 14,110
      

      • 

    

    On Monday, the Dow Jones Industrial Average
    
        DJIA,
    
        +0.21%
    
       rose 184 points, or 0.52%, to 35411, the S&P 500
    
        SPX,
    
        +0.30%
    
       increased 18 points, or 0.4%, to 4555, and the Nasdaq Composite
    
        COMP,
    
        +0.66%
    
       gained 26 points, or 0.19%, to 14059.
    

    

    What’s driving markets
    

    The Dow Jones Industrial Average is on an 11-session winning streak, its best run in more than six years, as hopes build that the Federal Reserve’s remaining interest rate hikes this year will not cause a recession as inflation cools. 
    

    Whether the Dow can make it an even dozen days of gains  and extend its rally even further to fresh 15-month highs will likely depend on the next few days containing corporate earnings reports and Fed comments.
    

    Dow components 3M
    
        MMM,
    
        +5.58%
    
       and Verizon Communications Inc.
    
        VZ,
    
        +0.60%
    
       both reported results before the bell. So did big name companies like General Electric
    
        GE,
    
        +5.97%
    
       and General Motors
    
        GM,
    
        -4.44%    .
       
    

    After the bell, come Microsoft
    
        MSFT,
    
        +1.18%
    
       and Visa
    
        V,
    
        -0.28%    ,
    
       with non-Dow member Alphabet
    
        GOOG,
    
        +0.11%
    
       also a highlight. Coca-Cola
    
        KO,
    
        -0.23%
    
       and Boeing
    
        BA,
    
        -1.67%
    
       are among those Dow members presenting their numbers on Wednesday.
    

    Investors will be want to hear from Alphabet and Microsoft about their cloud businesses, the ongoing impact and use of artificial intelligence and their general outlooks for American and global markets,  David Sekera, chief U.S. market strategist at Morningstar, said in a phone interview. 
    

    Meanwhile, equity markets are in “a little bit of a holding period” ahead of the events to come, he noted.  
    

    Read also: IMF sees signs global economy is headed in the right direction
    

    Wednesday also sees the Fed’s latest monetary policy decision. The market is certain the central bank will increase its policy interest rate by another 25 basis points to a range of 5.25% to 5.50%. 
    

    But investors are less sure of whether that will be the last hike of the current cycle, so the Fed’s accompanying statement and what Chair Jerome Powell says at his press conference will be the main drivers of bonds, equities and forex around the event.
    

    “Our view is the Fed is one and done,” Sekera said. Even with expectations that central banks will continue to “talk tough” on inflation, Sekera said Morningstar’s base case is that July’s 25-basis point hike is the last, while inflation continues to cool over the second half of the year. Rate cuts could occur as early as February, he said. 
    

    At Vanguard, Andrew Patterson, senior international economist, said in a note that  the Fed could reach its terminal rate “with 1 or 2 more hikes.”  The central bank is “likely to remain on hold through at least the end of the year.  If inflation proves persistent, this may be a sign of a higher neutral rate and the Fed may need to go to 6% or beyond in order to bring inflation back to target,” he said. 
    

    Others think there’s more rate hikes to go. “There is a great chance that the Fed will spoil your mood if you are among those thinking that this week’s rate hike will be the last for this tightening cycle in the U.S.,”  said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.  
    

    Read also: ‘No chance we’re having a soft landing’: Stock-market strategist David Rosenberg gives Powell’s Fed no credit — and no mercy
    

    Meanwhile, helping underpin sentiment on Tuesday was a rebound in Chinese stocks, notably property developers after Beijing signaled support for the heavily-indebted sector. 
    

    In other economic data Tuesday, home prices increased for the fourth consecutive month in May, according to the S&P Case-Shiller Index. May’s strongest price gains were in Midwest cities, but the overall gains underscore the ongoing lack of supply of homes. 
    

    While home prices are rising, so is consumer confidence. One gauge on consumer sentiment reached a two-year high, according to data out Tuesday. The Conference Board’s index for July increased to 117.0, which was above economists’ expectations and up from a revised 110.1 last month.   
    

    While mood is brightening, the index is still below pre-pandemic levels as consumers contend with the toll of high prices and rising interest rates. 
    

    Companies in focus
    

      

    • 
      General Electric Co. 
      
        GE,
      
        +5.97%
      
       shares up more than 6% and approaching a nearly five-year high after second quarter results from the  aerospace and renewable energy company that topped expectation. The company reported net income of $946 million, or 86 cents per share, from a loss of $1.25 billion, or $1.13 a share one year ago, while free cash flow and revenue  also beat estimates.  
      

      • 

    • 
      Verizon Communications Inc. 
      
        VZ,
      
        +0.60%
      
       shares are up more than 0.7% after the telecommunications company topped profit expectations in its latest earnings but came just below revenue expectations. The company reported $1.21 earnings per share, above FactSet consensus for $1.17 earnings per share.  
      

      • 

    • 
      General Motors Co.
      
        GM,
      
        -4.44%
      
       shares are more than 3% lower after the car maker delivered better than expected second quarter earnings and raised its guidance. The company had adjusted earnings per share of $1.91, topping the $1.86 consensus according to FactSet.  
      

      • 

    • 
      3M Co.
      
        MMM,
      
        +5.58%
      
       shares are more than 6% higher Tuesday after results showing the company booked a loss in connection with a litigation settlement over “forever chemicals.” But taking away the one-time charge, the company still topped adjusted profit expectations and raised its full-year outlook.
      

      • 

    • 
      Spotify Technology 
      
        SPOT,
      
        -13.68%
      
       shares tumbled about 12%  Tuesday after the streaming giant easily surpassed subscriber-growth expectations for its latest quarter but failed to sport upside on its key financials. 
      

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    Tesla, Nvidia, Spirit Aerosystems, KB Home, Accenture, and More Market Movers
    
			
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    Stock futures were falling following three straight days of losses for Wall Street. Federal Reserve Chairman Jerome Powell again will be delivering testimony before Congress. His comments on Wednesday that the central bank likely would be raising rates further this year pushed markets lower.
    

    

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    Alibaba, Dice, Arcellx, Avis, PayPal, and More Stock Market Movers
    
			
    Alibaba, Dice, Arcellx, Avis, PayPal, and More Stock Market Movers
    
			
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    This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.
    

    https://www.barrons.com/articles/stock-market-movers-fb3791aa
    

    

    

    

    

    

    

    

      

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