|Bid||349.66 x 900|
|Ask||349.81 x 1800|
|Day's Range||347.70 - 351.06|
|52 Week Range||292.47 - 446.01|
|Beta (3Y Monthly)||1.24|
|PE Ratio (TTM)||52.49|
|Earnings Date||Jan 28, 2020 - Feb 3, 2020|
|Forward Dividend & Yield||8.22 (2.35%)|
|1y Target Est||374.45|
The FAA was in the hot seat Wednesday on Capitol Hill over how it handled safety concerns around Boeing 737 Max jets. The head of the FAA and two whistleblowers testified at a House Transportation Committee hearing about accident prone airliners. Yahoo Finance’s Dan Roberts, Brian Cheung, Sibile Marcellus discuss the latest with Alexis Keenan.
(Bloomberg) -- After a year in which semiconductor stocks defied conventional wisdom with a seemingly unstoppable rally in the face of gloomy fundamentals, analysts are loathe to go all in.With signs of a rebound in demand still scant, the key question for the new year is where chipmaker shares can go when they’re trading at the highest price to future earnings multiples in nearly a decade. Most analysts expect business to improve in 2020, aided by things like 5G technology and cloud infrastructure spending. But valuations are cause for concern, especially when accounting for lingering tariff uncertainty.“It is challenging to argue that a good amount of the future return potential hasn’t simply been pulled forward on hope,” said Bernstein analyst Stacy Rasgon.At the end of 2018, most of Wall Street saw little to get excited about in the semiconductor industry. Chipmakers had begun axing forecasts as customer orders slowed and inventories swelled as the U.S.-China trade war heated up. Despite all of that, the Philadelphia semiconductor index embarked on a relentless advance, logging just two down months the entire year.The gauge that tracks 30 semiconductor-related stocks has risen 56% so far in 2019, which would be the biggest annual gain in a decade. That eye-popping number was aided by a brutal market sell-off at the end of 2018 that hit technology stocks particularly hard. Chip shares notched new highs Thursday after President Trump said the U.S. and China are “very close” to a “big” trade deal.To keep the rally going, semiconductor companies will need to start posting better-than-expected financial results, according to Morgan Stanley analyst Joseph Moore, who was one of the first analysts on Wall Street to get cautious on the group in the second half of 2018. Moore now advocates holding a select group of stocks including Intel Corp. and Nvidia Corp., which he expects to benefit from higher cloud spending in 2020.“The period where stocks are going to go up on bad numbers is largely behind us,” he said in an interview. “If the numbers come up, then we can have some good performance. I don’t think there’s room for these multiples to come up too much more.”In that regard, the third quarter was a good start. With results in from all members of the chip benchmark except for Broadcom Inc., more than three-quarters of companies beat profit and revenue estimates, according to data compiled by Bloomberg.Still other indicators are worrisome. Inventory levels for many chipmakers remain elevated, according to Moore, and tariffs haven’t been resolved. U.S. goods on some electronics imported from China are set to increase on Dec. 15 if there’s no trade deal.Despite the trade uncertainty, 2020 is “looking decent” from a fundamental standpoint, according to Bloomberg Intelligence analyst Anand Srinivasan. He expects cloud spending to improve, 5G spending to kick in, and stability in mobile devices and personal computers.“The growth themes that we have been positing are going to be manifested in 2020, particularly in the second half,” he said. “We think it still could be a bumpy ride from a stock perspective but we feel optimistic about 2020.”See AlsoSoftware Analysts See More Volatility in an Uncertain 2020Airbus Secures Lead Over Boeing as 737 Max Weighs Into 2020After ‘Blood-Spilled’ Year, Pot Firms Brace for Repeat in 2020Small-Caps Set to Retake 2020 Market Lead After Three-Year LagS&P 500 Melt-Up Is So Hot It’s Making Cheerleaders Into Skeptics(Updates shares and Trump comments in fifth paragraph, adds P/E chart.)\--With assistance from Lu Wang.To contact the reporter on this story: Jeran Wittenstein in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Jennifer Bissell-LinskFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Southwest Airlines will share its $125 million settlement with Boeing over the 737 Max grounding with its employees. Southwest is still seeking damages.
Southwest announced it will share compensation received from Boeing over the 737 MAX grounding with its employees. It is the first concrete tidbit investors have about how cash will flow from Boeing to its airline customers.
Southwest Airlines has reached an agreement with The Boeing Co. related to the grounding of the Boeing 737 Max – and the airline reiterated plans to share to proceeds with the employees.
Southwest Airlines Co. (NYSE: LUV) on Thursday reached a confidential agreement with Boeing (NYSE: BA) to compensate Southwest for projected financial damages related to the grounding of the airline's Boeing 737 MAX aircraft. The Boeing 737 MAX fleet has been grounded since the Federal Aviation Administration's order was issued on March 13. Southwest Airlines says it continues to monitor information from Boeing and the FAA on the impending 737 MAX software enhancements and training requirements.
NEW YORK/WASHINGTON Dec 12 (Reuters) - Southwest Airlines Co said on Thursday it had reached a confidential compensation agreement with Boeing Co for a portion of projected financial damages related to its 737 MAX aircraft grounding. The U.S. airline also said it would share the proceeds from Boeing with its employees. The world's largest 737 MAX operator expects the profit sharing accrual to be about $125 million.
Southwest Airlines Co. said Thursday it has reached a settlement with Boeing Co. over the grounding of its 737 Max fleet totaling about $125 million and that it will share the money with its employees. The sum is the projected reduction in operating profit caused by the groundings, which came after two fatal crashes involving the aircraft. Southwest is still in talks with Boeing regarding compensation for the groundings. The company is expecting to account for most of the compensation as a reduction in the cost of existing and future firm aircraft orders, lowering its depreciation expense in future years. The Boeing 737 Max fleet has been grounded since an order from the Federal Aviation Administration on March 13. Southwest shares were not active premarket, but have gained 16% in 2019, while the S&P 500 has gained 25%.
NEW YORK/WASHINGTON (Reuters) - Southwest Airlines Co said on Thursday it had reached a confidential compensation agreement with Boeing Co for a portion of projected financial damages related to its 737 MAX aircraft grounding. The U.S. airline also said it would share the proceeds from Boeing with its employees. The world's largest 737 MAX operator expects the profit sharing accrual to be about $125 million.
Delta Air Lines expects to fly through the “headwinds” of US election uncertainty and the return of Boeing’s 737 Max planes to competitors’ schedules to produce revenue growth of 4 to 6 per cent in 2020, the US carrier will tell investors on Thursday. Ed Bastian, chief executive, told the Financial Times that 2019 would be “the best year in Delta’s history by almost all measures”, and predicted that momentum would continue, allowing it to report diluted earnings per share of $6.75-$7.75 next year. Delta has claimed to have seen little advantage from not having the Max in its fleet at a time when rivals including Southwest and American have had to ground many of their planes for months after two fatal crashes.
BEIJING/SYDNEY Dec 12 (Reuters) - China has raised "important concerns" with Boeing Co regarding design changes proposed to end the grounding of the Boeing 737 MAX airliner, Beijing's aviation regulator said on Thursday, declining to say when it might fly in China again. The remarks broke months of public silence from China, the first country to ground the 737 MAX in March following the second deadly crash involving the model in less than five months.
BEIJING/SYDNEY (Reuters) - China has raised "important concerns" with Boeing Co regarding design changes proposed to end the grounding of the Boeing 737 MAX airliner, Beijing's aviation regulator said on Thursday, declining to say when it might fly in China again. The remarks broke months of public silence from China, the first country to ground the 737 MAX in March following the second deadly crash involving the model in less than five months.
Southwest Airlines strikes a deal to receive compensation for financial fallout related to the grounding of Boeing's 737 MAX aircraft.
(Bloomberg Opinion) -- This week, a core function of the World Trade Organization — founded in 1995 to govern the rules of trade between 164 countries — ground to a halt.The reason for that was U.S. President Donald Trump, who has never really had much time for multilateral institutions. The WTO has been on his hit-list for some time as an entity that he says has taken advantage of the U.S. and favored China, and now he has successfully moved to paralyze one of its most critical mechanisms: Dispute settlement. After repeatedly blocking new appointments to the seven-member body that decides on appeals at the WTO, the Trump administration has rendered it basically unworkable. Without an effective appeals process, why file a complaint at all?You could forgive the average person on the street for shrugging their shoulders at the thought of a dysfunctional WTO, which over the past two decades has had its fair share of messy moments. Negotiations in 2001 to lower trade tariffs around the world, called the Doha round, went nowhere. China’s entry into the club has neither opened up its economy, nor created a level playing field when it comes to potentially market-distorting subsidies. And as for the appeals process, the WTO’s most famous recent case — Airbus versus Boeing — has lasted 15 years without a clear winner. In 2016, Airbus’s boss at the time said the spat had only really benefited “the armies of lawyers” paid to fight it.All that said, there is a real and serious significance to the gridlock. Whatever the WTO’s flaws, and the obvious need for reform, Trump’s campaign has moved beyond constructive criticism and into assault. His weapon of choice is the punitive tariff and his target of choice is China, creating precisely the kind of bilateral trade war that the WTO works to avoid. Indeed, for all of the WTO’s failures to rein in China or deliver tariff agreements, its chief success has been convincing members to stick to a common legal framework rather than fight trade wars. Ralph Ossa, a professor at the University of Zurich, estimated in 2015 that this success was worth $340 billion annually to the world economy.Couple this with the impending departure of the U.K. from the European Union, which would create new potential barriers between Britain and its biggest trading partner, and this is a true milestone in the backlash against the post-Cold War order. That reaction may be justified in some areas, considering globalization’s legacy on workers’ rights and fair trade, but promising voters a better “deal” by wielding trade policy like a weapon can easily backfire. Trump’s lofty promises to fight trade cheats and currency manipulators have also resulted in a shrinking U.S. manufacturing sector. And across the Atlantic, the Conservatives’ promise to “get Brexit done” has saddled the U.K. with divorce papers that give it barely a year to negotiate a new trade deal with an EU eager to defend its market and economic interests. As world trade shifts from organization to disorganization, what is key is the response from actors like the EU and countries in Asia. It’s vital that Europe builds and improves on multilateral institutions. It’s likely the EU will keep finding itself in Trump’s cross-hairs, and the bloc is not in a position to engage in a prolonged trade war with the U.S. without serious internal disunity. Academics in France, Japan and Canada have proposed a “Euro Pacific Partnership” covering 40% of world trade that would defend multilateral dispute settlement at the WTO while also taking a tough line on enforcing intellectual property, government subsidy, human rights and data-transfer rules. Trump’s actions have made initiatives like this more likely: An EU backup plan that would create a way to keep on settling international trade disputes without the U.S. has gained support from Canada, Norway and now China.The alternative is, as plenty of trade officials have noted, the law of the jungle. That might suit Trump — a self-styled “tariff man” — just fine. But everyone else should worry.To contact the author of this story: Lionel Laurent at firstname.lastname@example.orgTo contact the editor responsible for this story: Melissa Pozsgay at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Lionel Laurent is a Bloomberg Opinion columnist covering Brussels. He previously worked at Reuters and Forbes.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
at 1.5-1.75 per cent and indicated it had no plans to make changes in 2020 as it made a decisive shift towards a more accommodative monetary policy. After a two-day meeting in Washington the Fed statement said monetary policy was “appropriate”, a change from October’s statement, and cut its reference to “uncertainties” in the outlook.
After the first crash of a Boeing 737 Max last year, federal safety officials estimated that there could be 15 more fatal crashes of the Max over the next few decades if Boeing didn’t fix a critical automated flight-control system.
(AMZN) CEO Jeff Bezos’s privately held space company, Blue Origin, just completed another successful launch. The trip brings the rocket company closer to its goal of carrying tourists into space—a journey that would be fun, but expensive. “This mission was another step toward verifying New Shepard for human spaceflight as we continue to mature the safety and reliability of the vehicle,” reads the company’s Wednesday news release.
FAA chief Stephen Dickson said the Boeing 737 Max won't be cleared to resume flying before the end of the year and hinted more enforcement action may be on the way.