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Money Monday: Boeing, CVS, and Credit Card Debt

Top News

From CNBC. “F.A.A. won’t clear Boeing to increase seven-thirty-seven Max production for several months, agency head says.”
This is a significant setback for Boeing, which has been trying to ramp up production following previous issues with the 737 Max. The F.A.A.’s decision indicates ongoing concerns about the aircraft’s safety, which could have a substantial impact on Boeing’s production schedules and financial outlook.

“Wall Street Asks Biden Not to Veto Congress’ Rejection of S.E.C. Crypto Policy.”
This headline highlights the ongoing tug-of-war between regulatory bodies and the crypto industry. Wall Street’s plea to President Biden underscores the high stakes involved in shaping crypto policy, which could influence the future of digital assets and their integration into mainstream finance.

In economic trends, we’re looking at a few key areas. Unemployment, while still low, has actually been on an upward trend since January of last year. This rise in unemployment, albeit slight, could signal underlying weaknesses in the job market that might emerge more prominently in the coming months.
Credit card delinquency rates have jumped from 1.45% to 3.01% in three years – almost doubling. This sharp increase suggests that more consumers are struggling to keep up with their debt payments, which could lead to broader economic issues if this trend continues.

With inflation remaining sticky, credit card loans at an all-time high, and delinquency rates rising, it seems increasingly likely that we might be heading towards a market correction or bubble burst. These factors combined indicate financial stress on both consumers and the economy at large.
The May Jobs Report comes out Friday morning ahead of the Fed’s FOMC meeting next Wednesday. Depending on how hot the jobs market looks, it could impact the Fed’s decision to cut or hold rates for the better part of the year.

On Our Watchlist

In stocks, CVS remains on our watchlist as its stock price lingers around multi-year lows. We’re looking for a reversal at these prices where, since 2013, the $54 to $58 range has seen strong support. This support level has historically acted as a floor for the stock, so any positive news or earnings surprise could trigger a rebound.

AT&T continues to struggle printing higher-highs. Since 2020, the company’s stock price has been trailing downward, making lower-highs. The price is currently sitting at $18.22. This persistent downtrend indicates ongoing challenges within the company, possibly related to competition, debt levels, or operational inefficiencies.

General Motors has its earnings call on Tuesday – its stock price has been hitting a ceiling around $46 since the beginning of April. GM’s price closed Friday at $44.99. Investors will be closely watching this call for insights into the company’s performance, future guidance, and any strategic shifts, especially in the EV market.

Boeing stock has been taking a nosedive since December of last year, following a string of safety infractions on several of its flagship aircraft. Down to $177 from its December high at $267, we’re keeping an eye on how news sentiment is affecting the company’s stock price. Continued negative news could pressure the stock further, while any positive developments or resolutions might offer relief.

Crypto

In crypto, Bitcoin continues to trail in the $60,000 range and has yet to print a higher-high since March. The stagnation in Bitcoin’s price suggests a consolidation phase, where traders are awaiting new catalysts before making significant moves.

Chainlink remains on our watchlist as it recently surged from $13 to $18. This significant price movement indicates growing interest and possibly new developments or partnerships that could be driving investor confidence.

Ethereum and speculations around an ETF approval have kept it on our watchlist – we’re looking out for news from the SEC about its approval. An ETF approval could be a major bullish signal for Ethereum, potentially driving its price higher as it gains broader acceptance and investment.

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