Plus, Boeing reported its sixth consecutive quarterly loss, Tesla is in hot water with the EPA, Dogecoin is surging after Mark Cuban called the crypto a better bet than a lottery ticket, and Allbirds is reportedly preparing for an IPO.
Stocks were down at the open on Wednesday with the Dow dropping 123 points, or 0.36%. The S&P 500 traded just below the flatline, while the Nasdaq dipped by 0.05%.
President Joe Biden is set to unveil his $1.8 trillion plan for children and families today. The massive new package comes less than a month after the White House issued a proposal to spend more than $2 trillion over eight years on infrastructure, with the two plans comprising Biden’s vision to overhaul the U.S. economy beyond the coronavirus pandemic. The White House said the new proposal, made up of $1 trillion in investments and $800 billion in tax credits over a decade, will be fully offset in 15 years in part by raising the amount of taxes paid by the richest Americans. The plan would make pre-kindergarten and community college free across the country, extend the child tax credit through 2025 and make permanent an expansion of the earned income tax credit to childless adults with low incomes, provide direct support to families for child care, finance teacher training, and create a national paid family leave program.
Boeing shares are down nearly 3% this morning after the plane maker posted its sixth consecutive quarterly loss. The jetliner reported a loss per share of $1.53, versus estimates for a loss per share of $1.16, on revenue of $15.22 billion. “While the global pandemic continues to challenge the overall market environment, we view 2021 as a key inflection point for our industry as vaccine distribution accelerates and we work together across government and industry to help enable a robust recovery,” Boeing CEO Dave Calhoun said in an earnings release. Yum Brands, on the other hand, delivered an earnings beat. The Taco Bell parent posted earnings per share of $1.07 on revenue of $1.49 billion, compared to estimates for earnings of $0.87 per share on revenue of $1.45 billion. “Notably, all four of our brands had a weekly per restaurant sales record in the U.S. at least once during the quarter,” Yum CEO David Gibbs said on a call with analysts.
The U.S. Environmental Protection Agency accused Tesla of failing to prove it is complying with hazardous air-pollutant rules related to the surface coatings of its electric cars, the company disclosed this morning. Tesla said in a filing that it “has responded to all information requests from the EPA and refutes the allegations,” adding that it does not expect any “material adverse impact” on its business from its dealings with the EPA in this matter. Separately, officials in Germany have fined Tesla 12 million euros, or around $14.5 million, for allegedly failing to make public notifications, and properly fulfill their obligations to take back old batteries from customers. The company wrote “this is primarily relating to administrative requirements, but Tesla has continued to take back battery packs.” Tesla has filed an objection to the claims in Germany.
Dogecoin is surging this morning following two celebrity endorsements, rising as high as $0.33 in early morning trading. In an appearance on the Ellen DeGeneres Show, Mark Cuban, owner of the Dallas Mavericks NBA team, said the cryptocurrency that was started as a joke back in 2013 is a better investment than a lottery ticket. “Overall, when someone brings up Dogecoin to you and asks you it it’s a good investment, I would say it’s not the world’s best investment but it’s a whole lot better than a lottery ticket, and it’s a great way to learn and start understanding cryptocurrencies,” Cuba said. “And you know what? It could go up. And the second part about it is if it doesn’t go up and you want to spend it, you can buy merchandise on the Mavericks store.” Then over on Twitter, Tesla CEO Elon Musk tweeted “The Dogefather SNL May 8” referring to his upcoming hosting spot on Saturday Night Live announced last week. The tweet prompted excitement among dogecoin traders that the meme-based crypto would gain increased attention in front of a large television audience.
And trendy shoemaker Allbirds is reportedly in the process of interviewing banks in preparation for an initial public offering. The direct-to-consumer brand was last valued at around $1.7 billion, and is a certified B Corp, a certification earned by focusing on social good as well as profit. The shoemaker has seen momentum for its products, including its popular slip-on sneaker made of wool and other sustainable materials as well as its new running shoe released last year, keep growing over the last year as consumers sought comfort amid the pandemic. “A big focus for us is to try and make better products with less environmental impact. The business has been extraordinarily resilient through a difficult period of time,” said co-founder Tim Brown in a recent interview.
Stocks We’re Watching
NETSOL Technologies Inc (NASDAQ: NTWK): NETSOL shares jumped as much as 42% yesterday after the company announced that it has secured a multi-million dollar renewal of its current agreement with an existing tier-one Japanese automotive customer in Thailand. Under terms of the contract, the customer will continue to license certain key components of NETSOL’s NFS Retail platform, including its NFS Credit Application Processing System (CAP) and NFS Contract Management System (CMS). “This customer has been a market leader in the financing and leasing of commercial vehicles and pickup trucks in Thailand for some time, and we’re looking forward to building our already-strong working relationship for years to come,” said NETSOL President and Otoz CEO Naeem Ghauri. “Over the past few years, we’ve been able to provide clear value and quality for their operations, utilizing both the CAP and CMS components of our NFS Retail platform. On a broader level, this renewal further solidifies our standing in Thailand and across Asia-Pacific as the preferred business partner for auto captives and finance and leasing companies in the region.”