sanfel
Listen below or on the go on Apple Podcasts and Spotify
Boeing (BA) formally files guilty plea in 737 MAX case. (00:25) Ford (F) profitability skids on higher warranty costs, EV losses. (01:17) NBA rejects Warner Bros. Discovery (WBD) on deal, to go with Amazon (AMZN). (02:36)
This is an abridged transcript of the podcast.
Boeing (NYSE:BA) has formally filed a guilty plea with the Department of Justice.
The case has to do with Boeing making false representations about key software for the 737 MAX linked to two fatal crashes in 2018 and 2019.
As part of the agreement, the aerospace giant will also pay a $243.6M fine, a court filing stated.
Boeing confirmed the plea filing to Reuters. "We will continue to work transparently with our regulators as we take significant actions across Boeing to further strengthen our safety, quality and compliance programs."
In the filing, the DoJ noted that Boeing neglected to ensure employees documented removing parts during airplane manufacture and didn't confirm the work by mechanics and inspectors.
Ford Motor Company (NYSE:F) profitability eroded in the second quarter due to increased warranty costs and losses associated with its electric vehicle division.
Ford (F) is down 13% premarket.
This left the carmaker with an adjusted profit of $0.47 per share, down $0.25 from the same quarter last year and $0.21 below Wall Street’s expectations.
“We still have lots of work ahead of us to raise quality and reduce costs and complexity,” CFO John Lawler said in a statement.
By segment, the company’s commercial division reported sales of $17.0B, an increase of 9% with profitability increasing to $2.56B.
Ford Blue, the company’s ICE division, saw revenue improving 7% to $26.7B but profitability, or EBIT, fell to $1.71B, mostly because of the higher warranty costs. Sales of hybrid vehicles increased 34% and accounted for nearly 9% of all Ford (F) vehicles worldwide.
Finally, the company’s EV segment, Ford Model E, realized a 37% decline in revenue resulting in a loss of $1.14B, more than offsetting $400M in year-over-year cost reductions in the segment.
The drama around the next pro basketball media deal took its next step Wednesday.
The National Basketball Association rejected an attempt by Warner Bros. Discovery (NASDAQ:WBD) to remain an incumbent by exercising matching rights.
The NBA reached an 11-year, $76B-plus package deal last week with ESPN (NYSE:DIS), NBC (NASDAQ:CMCSA) and Amazon.com (NASDAQ:AMZN), leaving out multi-decade partners TNT and TBS (WBD).
But WBD exercised its incumbent matching rights -- moving just at the end of the five-day window to try to match Amazon's $1.8B piece of the deal.
"Warner Bros. Discovery's most recent proposal did not match the terms of Amazon Prime Video's offer and, therefore, we have entered into a long-term arrangement with Amazon," the NBA said in a statement Wednesday afternoon.
The next steps on a near-$2B deal would appear to be legal.
The new 11-year media rights deal is set to take effect in 2025.
WBD is down 3% in premarket action.
More articles on Seeking Alpha:
The correction happening in stocks is 'far from over,' IBKR says
Warehouse REIT Lineage prices IPO near high end of range in year's biggest debut - report
Succession feud: Rupert Murdoch moves to ensure media empire's conservative stance
Catalyst watch:
The three-day Bitcoin 2024 Conference will include appearances by Donald Trump, Robert Kennedy Jr., ARK Invest's Cathie Wood, MicroStrategy (MSTR) Executive Chairman Michael Saylor, Edward Snowden, Vivek Ramaswamy and Anthony Scaramucci. Some of the companies that are participating include Riot Platforms (RIOT), Gryphon Digital Mining (GRYP), and TeraWulf (WULF). Donald Trump is not scheduled to speak until July 27, but his upcoming appearance could create buzz all week for Bitcoin (BTC-USD).
Notable investor events include NV5 Global's (NVEE) Investor Day.
Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in mixed territory. Crude oil is down 1.8% at $76 per barrel. Bitcoin is down 3.4% at $64,000.
In the world markets, the FTSE 100 is down 0.8% and the DAX is down 1.3%.
The biggest movers for the day premarket: Chipotle Mexican Grill (NYSE:CMG) is up 4.3% following its impressive Q2 results, which exceeded expectations.
On today’s economic calendar:
8:30 a.m. GDP Q2
8:30 a.m. Initial Jobless Claims
4:30 p.m. Fed Balance Sheet
