Dow dropped 196 (near sesion lows), decliners barely ahead of advancers & NAZ rose 108. The MLP index added 2 to the 283s & the REIT declined 2+ to the 377s. Junk bond funds continued mixed & Treasuries had very limited selling, allowing yields to inch higher. Oil was off chump change into the high 79s & gold jumped 20 to 2438 (more on both below).
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Microsoft announces new PCs with AI chips from Qualcomm
Boeing (BA), a Dow stock, shareholders voted to re-elect the outgoing CEO Dave Calhoun to the
board of directors as he sought
to reassure investors that the manufacturer is on the path to stability
amid its latest safety crisis. Calhoun in Mar said he will step down by year’s end, months after a door plug panel blew out
midflight from a Boeing 737 Max 9, ushering in new scrutiny of the
manufacturer's safety & quality control issues. BA also replaced
its board chair & the head of its commercial airplane unit in the
shakeup. The
new chair, Steve Mollenkopf, told shareholders at the annual meeting that he has consulted with investors & customers
on Calhoun's successor. Proxy advisor Glass Lewis had recommended that shareholders vote against Calhoun & 2 other board members. BA's
latest problems have driven down deliveries of new aircraft,
frustrating airline execs who have complained about having to
change their flight schedules & scale back staffing. It has also further strained BAs relationship with its regulator,
the Federal Aviation Administration, which has ramped up inspections of
the manufacturer. BA stock was up 1.72.
Boeing shareholders reelect departing CEO Calhoun to board
Jamie Dimon's days as CEO of JPMorgan Chase (JPM), a Dow stock, are numbered, though its unclear by how much. In
a response to a question about the bank's succession planning,
Dimon indicated that his expected tenure is less than 5 more years.
That's a key change from Dimon's previous responses to succession
questions, in which his standard answer had been that retirement was perpetually 5 years away. “The timetable isn’t five years, anymore,” Dimon said at the bank's annual investor meeting. The
ambiguity of his plans has made succession timing at JPM one
of the persistent questions for the bank's investors & analysts. Over
nearly 2 decades, Dimon, 68, has made his lender the largest in
America by assets, market capitalization & a number of other measures. Still, Dimon added that he still has “the energy that I’ve always had” in managing the sprawling company. The
decision of when he moves on will ultimately be up to the board,
Dimon said, & he exhorted investors & analysts to examine the
execs who could take his place. JPM stock sank a very big 9.12.
JPMorgan CEO Jamie Dimon signals retirement is closer than ever
Gold trimmed gains as traders
booked profits after prices surged to a record on increasing optimism
over the Federal Reserve's monetary policy & rising geopolitical
tensions in the Middle East. Bullion
was slightly higher in early trading after earlier
jumping as much as 1.4% to hit $2450, which surpassed a previous
intraday high reached in Apr. Traders
have been boosting bets in recent sessions that the Fed may reduce
borrowing costs as early as Sep, a scenario that would bolster
gold since it doesn't pay interest. A
weaker $ has provided the precious metal with additional support. Recent economic data releases indicated that the US economic recovery is
slowing, which could lower inflation & reduce the need for prolonged
tight monetary policy. Gold's haven
status was in the spotlight after news that Iran's Pres Ebrahim
Raisi, widely seen as a candidate to become the country's next supreme
leader, was killed in a helicopter crash yesterday. His death, along
with that of Foreign Minister Hossein Amirabdollahian, came at a time of
turmoil in Middle East due to the Gaza war. The incident adds a sense
of rising geopolitical risks across the region after a China-bound oil
tanker was hit by a Houthi missile in the Red Sea on Sat. Hedge
funds futures boosted bullish bets on gold to a 3-week high last week. The
gains suggest that bullion has broken out of what’s been a fairly
narrow trading range in recent weeks amid a lack of clarity over the US
rate path. Prices are about 17% higher this year. Spot gold was up
a smidgen to $2417 an ounce.
Gold Trims Gains as Traders Book Profit After Fresh Record
Oil futures settled lower, giving up early gains that had been tied to potential risks to global crude supplies following the death of Iran's pres in a helicopter crash & concerns about the health of Saudi Arabia's king. West Texas Intermediate crude for Jun edged down 26¢ to settle at $79.80 a barrel after trading as high as $80.60. The contract expires at the end of tomorrow's trading session. Jul Brent crude, the global benchmark, lost 27, dropping to $83.71 a barrel following an intraday high at $84.49. Iranian Pres Ebrahim Raisi, along with the country's foreign minister & others, were found dead after their helicopter crashed yesterday in foggy conditions in a mountainous region of the country's northwest, according to state media. The crash comes against the backdrop of continued tensions over the Israel-Hamas war. Israel & Iran pulled back from the brink of all-out conflict after a series of strikes and counterstrikes last month.
Oil Prices Finish Lower, Giving Up Early Gains Seen After Death of Iran’s President
Dow began the day higher, but hawkish talk on the future of rate cuts brought selling in the PM. The stock market is heavily overbought & enthusiasm is bassed primarily on rate cuts. Prolonging high interest rates will be bearish for the stock market.Dow Jones Industrials
