Rise on Wall Street – Boeing shares fell after new investigation – E24

Hopes of an interest rate cut pushed Wall Street higher, while Boeing shares fell after the aviation authority is to investigate the company again.

This is how it looked for the benchmark indices on Wall Street at closing time on the first trading day of the week:

• The collective index S&P 500 ended up 1.03 percent
• The technology index Nasdaq climbed 1.19 percent
• The Dow Jones climbs up 0.46 percent

The job figures from the US, which came in on Friday last week, showed far fewer jobs created than previously expected. This may give hope that the US central bank (Fed) will open for faster interest rate cuts than first expected.

– It feels a bit early to declare that the US economy has had a soft landing, since the Fed is still keeping the key interest rate at a restrictive level. But the April figures help pave the way for the target, says Comerica Bank Chief Economist Bill Adams to CNBC.

The biggest part of this results season’s quarterly report is behind us, but this week results await from heavyweights such as Disney and Uber.

New Boeing investigation

The US Federal Aviation Administration (FAA) has opened a new investigation against the aircraft manufacturer Boeing, the Wall Street Journal reported on Monday evening.

According to the FAA, Boeing did not report in April that it might not have completed the required inspections.

In a statement, the Norwegian Aviation Authority says that it is investigating whether Boeing completed the inspections and whether employees of the company may have falsified documents, according to the newspaper.

The plane maker has been struggling for several years, but the pressure increased after a door plug fell off an Alaska Airlines plane in January while the plane was in the air.

The share was on positive ground for a long time on Monday, but fell heavily after the news. The Boeing share ended down 0.80 percent.

Increased earnings

Investor legend Warren Buffett and his investment company Berkshire Hathaway presented their first quarter results on Saturday.

The key figures looked like this:

• Operating profit was 11.3 billion dollars, an increase from 8 billion in the first quarter of 2023.
• A cash balance of $189 billion.

Berkshire Hathaway’s B shares rose 1.03 percent on Monday.

In addition, it emerged that Buffett’s investment company has disposed of a bunch of Apple shares in the first quarter. It is nevertheless still the company’s largest position.

– The news of the sale probably doesn’t weigh on the stock that much because Buffett validated Apple as still a fantastic company, says stock manager Bernt Berg-Nielsen, who manages the Stolt Explorer fund, to E24.

The Apple share ended down 0.91 percent.

There were also results in the following shares on Monday:

• Spirit Airlines reported lower-than-expected earnings in the first quarter, in addition to a weak outlook for the second quarter in 2024. The stock fell almost 10 percent.
• The Paramount share rose 3.10 after the takeover saga took new turns at the weekend. Star director James Cameron jumped in and backed the Skydance bid.