• How has the Fed’s stance on rate cuts changed since June?
• How did cheaper airfares impact Delta’s profitability?
• Why are Democrats questioning Biden’s re-election bid?
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Opening price as of 07/11/2024 compared to last close
IN THE HEADLINES
Fed Chair Powell Welcomes Cooling Inflation
Federal Reserve Chair Jerome Powell suggested that interest rate cuts could be considered if positive economic trends continue, noting improvements in the labor market and inflation cooling to 3.3%. The Fed left rates unchanged in June and scaled back the projected rate cuts for 2024, aiming for a 2% inflation target. Powell emphasized the importance of further progress before making changes and acknowledged the risks of delaying cuts. Speaking at a Senate Banking Committee hearing, he highlighted the need for independent monetary policy amidst political pressures. The upcoming June consumer price index report will be crucial for the Fed's decisions. Read more
Delta Airline Falls Short on Earnings in Q2 and Q3 Outlook
Delta Air Lines reported record revenue of $16.66 billion for Q2 2024, driven by strong travel demand, but saw a 29% drop in net income to $1.3 billion due to cheaper airfares and rising costs, including a 12% increase in jet fuel and 9% rise in labor expenses. Earnings per share slightly missed expectations, and the airline forecasted lower-than-expected earnings and sales growth for Q3. Delta also noted a deceleration in capacity growth and is dealing with unionization efforts among its workforce. The stock fell nearly 9% in pre-market trading following the report. Read more
Questions Mount as Democrats Grow Divided on Biden’s Candidacy
President Joe Biden's reelection campaign faced mounting doubts as key Democrats, including House Speaker Emerita Nancy Pelosi and Sen. Peter Welch, questioned his ability to defeat Donald Trump. Welch urged Biden to withdraw, citing high stakes, while Pelosi remained noncommittal. Concerns have risen following Biden's poor debate performance and ongoing questions about his age and health. Despite Biden's determination to continue in the race, his campaign is actively seeking support, with senior advisers meeting Democratic senators to address their concerns. Read more
TradeUP TIDBITS
CPI Inflation Report – June 2024
The Consumer Price Index (CPI), a comprehensive gauge of expenses for goods and services, decreased by 0.1% from May, resulting in a 12-month rate of 3%. This marks one of the lowest levels in over three years, bolstering the case for potential rate cuts. Read the Full Article
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This week's topic is: Do you think the Fed will cut interest rates soon as inflation cools?
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