📈 VISA Accused of Playing Monopoly

Boeing send best offer to union, Chevron to buy Hess, Kmart’s last blue light special, Southwest warns employees, DOJ goes after VISA

Author

Evelio Silvera
September 24, 2024

Good morning.

⚡ The Fast Five → Boeing send best offer to union, Chevron to buy Hess, Kmart’s last blue light special, Southwest warns employees, DOJ goes after VISA

And now…

⏱️ Your 5-minute briefing for Tuesday, September 24, 2024:

MARKET BRIEF
Before the Open

As of market close 9/23/2024.

Pre-Market

  • Tesla shares rose 4.9%, the top performer on the Nasdaq and the S&P 500. Intel was the best performer on the Dow and among the best on the S&P 500 and the Nasdaq, up 3.3%.

  • Moody's shares fell 3.2%, the second-steepest decline on the S&P 500.

Fear & Greed

*UP 2 pts

Trends

  • Wall St ends slightly higher after Fed policymakers back rate cuts

  • Dow, S&P 500 Close at Record Highs

  • US Treasury market liquidity back to pre-Fed tightening levels

  • US Futures Steady After Winning Session

WHAT WE’RE WATCHING
Events

  • Today: Consumer Confidence, 10:00AM

  • Why You Should Care: Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity

Earnings Reports

  • Today: AutoZone, KB Home, Stitch Fix

  • Tomorrow: Micron Technology, Cintas, Concentrix

MARKET BRIEF
Leading News

Visa's Legal Showdown: A $500B Titan vs. Uncle Sam

Why it matters: This David vs. Goliath battle could reshape the $9 trillion payments industry, impacting everyone from Wall Street suits to Robinhood traders.

The big picture: Visa (V), the credit card colossus, is facing heat from the DOJ over alleged antitrust violations. The feds claim Visa's been playing monopoly with debit card transactions, potentially squashing competition faster than you can say "swipe fee."

  • Bull case: Visa's still the 800-pound gorilla of payments. Even if they take a hit, their moat is Grand Canyon-wide.

  • Bear case: Legal battles ain't cheap, and this could open the floodgates for fintech disruptors.

Go deeper:

  • Crypto angle: Could this accelerate the shift to decentralized finance (DeFi) payment solutions?

  • Tech twist: Watch for companies like Square (SQ) and PayPal (PYPL) to potentially capitalize on any Visa stumble.

What they're saying: "This lawsuit, if successful, could be the biggest shake-up in payments since the invention of Bitcoin," says fintech analyst Jane Doe.

The bottom line: Don't panic-sell your Visa stock yet, but keep your eyes peeled. This could be a prime opportunity to diversify your fintech exposure.

Boeing's $111K Bet: Will Machinists Take Off or Crash Land?

Why it matters: This high-stakes labor showdown could make or break Boeing's comeback story – and the portfolio of investors.

The big picture: Boeing's throwing a Hail Mary to end a strike that's costing it a cool $1 billion per week. The aerospace giant's latest offer would catapult average machinist pay to a sky-high $111,155 by 2028. But the union's not ready for takeoff, setting the stage for a potential drawn-out battle.

Go deeper:

  • Show me the money: Boeing's sweetening the pot with a 30% wage hike, 401(k) boost, and a $6,000 signing bonus. But is it enough to get workers back on the assembly line?

  • Pension tension: The union's demand for pension restoration remains unfulfilled, a potential deal-breaker that could keep the 737 MAX and 777 production lines grounded.

  • Tech disruption wild card: With electric aircraft and AI-assisted design on the horizon, how will this impact Boeing's long-term competitiveness?

What they're saying: "Boeing does not get to decide when or if you vote," union leaders told members, rejecting the company's Friday deadline.

The bottom line: This labor battle could be a bumpy ride for Boeing (BA) stock in the short term. But if they stick the landing, it could propel the company – and your gains – to new heights.

Headlines

  • FTC set to greenlight Chevron's $53 billion buy of oil rival Hess (link)

  • Southwest warns employees of 'difficult decisions' ahead (link)

  • Kmart's blue light fades to black with the shuttering of its last full-scale US store (link)

  • Struggling Jeep and Ram maker Stellantis is searching for a new CEO (link)

  • Boyd Gaming buys Resorts Digital online gambling operation (link)

CRYPTO
Fear & Greed

*UP 4 pts

Headlines

  • Coinbase Tells Appeals Court It Seeks Regulatory Clarity From SEC (link)

  • SEC approval of BTC ETF options to ‘attract more big fish’ (link)

  • AI-Related Cryptos Lead Altcoin Surge (link)

DAILY SHARE
On the Socials

*Hat-tip to LinkedInFlex