|Day's Range||6.15 - 6.15|
While nearly all who ponder the trajectory and impact of such controversial subjects as monetary policy have anticipated this Wednesday afternoon's dog-and-pony show for quite some time, there are those who clearly have taken a leap of faith ahead of the jugglers and the plate spinners. While I am unsure of just how dovish leadership at the Federal Open Market Committee (FOMC) reveals itself to be later on, trading volumes for securities listed on the New York Stock Exchange (NYSE) and Nasdaq soared on Tuesday as the S&P 500 (SPX) moved sharply north from the 50-day simple moving average (SMA) that had acted as support for more than a week. Possibly significant would be the fact that this line had been a difficult hurdle for the Nasdaq Composite (COMP) to overcome.
GE and its CFM joint venture reeled in tens of billions of dollars of orders in the first two days of the 2019 Paris Air Show.
Some U.S. insurers are turning to Wall Street's financial wizards for relief from the liabilities of their long-term care (LTC) policies, posing a challenge for regulators worried about how new industry players will tackle the risks involved. Many have become financially toxic for insurers, because of soaring healthcare costs and rising lifespans. A few investment firms are willing to take on these LTC contracts, betting they can invest the premiums from the policies to generate strong enough returns to cover the payouts, and even turn a tidy profit.
The addition of 15 cargo jets will bring Amazon's fleet to 20 737s that are leased from General Electric, adding to the five others that were leased earlier this year.
As electric planes take center stage, Siemens agreed to sell its eAircraft business to GE's jet engine rival Rolls Royce.
Amazon.com, Inc. (NASDAQ: AMZN) announced on June 18 that it will lease 15 Boeing (NYSE: BA) 737-800 freighters from GE Capital Aviation Services (GECAS), the aircraft lending unit of General Electric Co. (NYSE: GE). The airplanes, which will operate in the U.S., will enter Amazon's fleet by 2021, the e-tailer said. The announcement comes just days after FedEx Corp. (NYSE: FDX) said it would not renew its contract with Amazon to transport the e-tailer's domestic air packages.
Rather quietly now, GE stock has begun flirting with a major breakout and Tuesday's 3.7% rally to $10.42 only helped. In late December, investors were worried General Electric stock would drop into the $5 range. In any regard, the stock has continued to fight its way higher, getting through earnings in January and April, as well as an investor meeting earlier this year.
GE Aviation, the General Electric Co. subsidiary that provides jet engines, components and integrated systems for commercial and military aircraft, has backfilled about half of the GE Global Operations Center at the Banks.
There's hope for General Electric (NYSE:GE). Asset sales, a new CEO, and the promise of improved execution have brought investors back into GE stock. General Electric stock has risen 43% so far this year, handily outpacing the stock market.Source: Shutterstock I've been skeptical of the gains since GE stock hit $10, and I was bearish on GE stock long before that. For all the coverage GE receives, many aspects of its business aren't that attractive. GE Power serves declining end markets. Baker Hughes (NYSE:BHGE) is again challenging a 19-year low. Renewable energy hasn't proven to be a winner. GE Capital is still dealing with errors made years ago. * 5 Stocks to Buy for $20 or Less GE Healthcare and GE Aviation are certainly attractive. But with GE's heavily indebted balance sheet, and with its free cash flow expected to be negative this year, those two businesses simply are not attractive enough to make me upbeat on GE stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAll that said, I do understand why some are bullish on GE stock, and, truthfully, I would love to see the bullish thesis play out. GE is an iconic American company. Many investors lost a large amount of money on GE stock in recent years; they deserve a rebound.And there are reasons to be bullish on GE stock now. As I wrote just last month, GE management clearly is being more transparent. New CEO Larry Culp has sparked optimism. And to some extent, bad news is priced into GE stock. If Culp can turn around GE, General Electric stock is going to rise.I still believe that's too big an "if'," however. In that context, a few recent developments need to be monitored closely. GE Gets Transparent-ishCulp clearly has made a point of giving investors and analysts news when possible, whether it's good or bad. He told investors in March that GE would be cash flow-negative this year (excluding GE Capital) - and then reiterated that guidance last month. That's a noted departure from what InvestorPlace columnist Will Healy wisely called a "constant drip" of bad news, including lowered guidance, surprising charges by GE Capital, and execution missteps that weren't quickly revealed.But as Bloomberg noted last month, old habits are tough to break. CFO Jamie Miller admitted that the company had created "confusion" by touting the growth of GE Power's orders on its Q1 conference call in late April. That growth was questioned by JPMorgan Chase (NYSE:JPM) analyst Stephen Tusa, a prescient and longtime bear on General Electric stock.At a conference three weeks after the call, Miller said the company was referencing a report from a third-party. But as Bloomberg pointed out, the report included joint-venture orders and some orders that were already in the company's backlog before the quarter.For any other company, this would be a minor slip-up. For a company that's spent years seemingly twisting all news in its favor, it's a concerning step. GE Aviation StumblesAgain, the company's attractive businesses are Aviation and Healthcare. Those two segments can help keep GE afloat while it repairs its Power business and waits for a rebound in oil and gas and other smaller markets.But the GE9x engine is taking criticism by one of GE's key customers, Boeing (NYSE:BA). That manufacturer's 777x is facing potential delays after a second issue with GE's engine. Testing of the GE9x originally was delayed by three months due to a compressor issue. Further mechanical issues are delaying testing again, and GE is the "long pole in the tent," as Boeing CFO Greg Smith put it.This, too, isn't major news. Neither Boeing nor Airbus (OTCMKTS:EADSY) is going to abandon GE Aviation over these delays. But - as with the transparency issue - GE's history colors everything. A delay involving a key customer in a key business can't be seen as good news. GE's China ProblemThere's another major issue with buying GE stock: the economy needs to cooperate. A recession would interrupt the company's plans and offset Culp's optimism about 2020 and beyond.The trade war with China is a potential catalyst for a global slowdown. But even if that doesn't play out, China seems to be a significant risk for GE. For GE Healthcare, China was "a source of growth" last year, as the company put it in its 10-K. But that growth may have come from unsavory methods: the SEC is investigating GE, along with Philips (NYSE:PHG) and Siemens (OTCMKTS:SIEGY) for bribery.Moreover, Tusa and another analyst both have noted that China could create a new competitor for GE Power in the region. That market is too large, and GE Power too wobbly, to handle that type of blow.On top of all that, tariffs already are increasing GE's costs. And a prolonged trade war could undercut GE's brand. The problem with an industrial company like General Electric is that it can do everything right and still be upended by external factors. Culp's plans may not come to fruition if the news from China doesn't improve. On the Sidelines on General Electric StockTo those who are bullish on GE stock, these concerns probably seem like nit-picking. But that's what happens when a company loses trust.That aside, GE's turnaround path is not easy. It's facing real challenges now. GE stock didn't plunge just because of poor execution, bearish analysts, or uneven communication. Its fundamentals have been headed in the wrong direction for some time. It's going to take some time, and some help, for that to change.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post The Turnaround of General Electric Stock Takes a Few Hits appeared first on InvestorPlace.
Amazon said Tuesday that it will lease and additional fifteen cargo airplanes from Boeing, through a deal with General Electric's aviation unit, in order to boost its global delivery network.
Wall Street's main indexes were set to open higher on Tuesday, as more dovish calls from the European Central Bank lifted expectations of a similar accommodative stance from the Federal Reserve. The Fed's statement at 2 p.m. EDT (1800 GMT) on Wednesday will likely provide insights into the impact of the U.S.-China trade war, President Donald Trump's calls for a rate cut and weaker economic data on monetary policy.
Amazon.com Inc. said Tuesday it will lease 15 737-800 cargo aircraft made by Boeing Co. , through a partnership with General Electric Co.'s GE Capital Aviation Services (GECAS). The 15 aircraft will be in addition to the five Boeing 737-800s already leased from GECAS, announced earlier this year. "These new aircraft create additional capacity for Amazon Air, building on the investment in our Prime Free One-Day program," said Dave Clark, senior vice president of worldwide operations at Amazon. "By 2021, Amazon Air will have a portfolio of 70 aircraft flying in our dedicated air network." Amazon's stock rose 0.9% in premarket trading, while Boeing shares climbed 1.3% and GE's stock tacked on 0.9%. The shares gains come as futures for the Dow Jones Industrial Average rallied 144 points.
General Electric Co NYSE:GEView full report here! Summary * Perception of the company's creditworthiness is neutral * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is extremely low for GE with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting GE. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding GE are favorable, with net inflows of $8.86 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Industrialsis falling. The rate of decline is very significant relative to the trend shown over the past year, and is accelerating. The rate of contraction may ease in the coming months, however. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. GE credit default swap spreads are near their highest levels of the last 3 years, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
The Fed's two-day meeting is scheduled to start on June 19. The Fed will release a statement and announce its interest rate decision on the same day. Expert Jim Grant weighs in on the possibility of an interest rate cut.
Much of the recent negative information on GE seems to have come from GE’s biggest competitor. That raises a new risk for GE investors: The echo chamber.
General Electric (GE) closed the most recent trading day at $10.05, moving -1.76% from the previous trading session.
Airbus and GE announced their first orders at the Paris Air Show Monday, while Boeing said it's open to changing the 737 Max's name.
GE will redesign a new jet engine for Boeing's newest jets after finding unexpected wear in a compressor part. GE stock fell while Boeing rose.
A Greater Cincinnati manufacturer will produce engines for India’s largest passenger airline as part of a multibillion deal the company said is the largest single engine order in aviation history.
GE booked $24 billion in orders for engines and services at the Paris air show so far and expects to see at least $35 billion in total by the end of the Paris air show. Yahoo Finance's Editor-in-Chief Andy Serwer, Alexis Christoforous, Brian Sozzi and Gordon Haskett Senior Analyst John Inch joins Yahoo Finance to discuss that and the outlook for the company.