✈️ Boeing seems to be recovering

and big earnings inside

Good morning investors! Stocks jumped yesterday but failed to maintain the pace; however, BTC continues to go up as gold takes a fall.

Today we cover:

  • Business activity falls

  • Big earnings (Boeing, Chipotle, and more)

  • What new workers want

Sponsor: This 12 Dumbest Things Smart Americans Waste Money On article might help you save some money. Check now.

📊 Economy and News 

🇺🇸 U.S. Business Activity Hits 16-Month Low as Tariff Fears Grow

U.S. business activity slowed sharply in April, with S&P Global’s Composite PMI falling to 51.2 — its lowest since December 2023 — as tariffs and rising costs weighed on growth and hiring.

Prices for goods and services surged, stoking fears of stagflation.

Global hits:

Warning: A recent study found that incoming college freshmen could rack up $40,000, on average, in education debt by graduation. On the other hand, confidence in Trump’s handling of the U.S. economy continues to plummet as several states sue Trump in bid to block new tariffs.

Home sales surge: New U.S. single-family home sales rose 7.4% in March to a seasonally adjusted annual rate of 724,000 — the strongest since September 2024 — as falling mortgage rates spurred buyer demand. That beat expectations of 680,000, with sales up 6% year-over-year.

The average 30-year mortgage rate dipped to 6.65% in March, helping buyers act fast, though rates have since climbed to 6.83% amid inflation worries tied to Trump’s shifting tariff policies.

Despite the March bump, rising construction costs, trade tensions, and uncertainty around Fed rate cuts are weighing on the housing outlook. Homebuilder estimates suggest tariffs have added nearly $11,000 to the cost of a new home.

Sales rose in the South and Midwest but dropped in the Northeast and West. The median home price fell 7.5% to $403,600, with most sales under $500K. Inventory hit a 17-year high, though time to clear supply dropped to 8.3 months.

Also check: Wage growth in the euro zone is expected to ease considerably this year. On the other, Fed says Businesses are already trying to pass tariff costs onto customers. Lastly, consumer spending is up big in early April as people buy in anticipation of tariffs.

Sponsored by Simply Business

  • A client has an allergic reaction to some face cream you applied.

  • A customer trips over a ladder you left on the lawn.

  • You neglect to carry the “2” on a client's tax return and they have to pay a penalty.

Just about every small business faces financial risks, but more than half of them (56%) aren’t protected with insurance.  

Without insurance, you could find yourself having to cover costly claims. Even if it’s not your fault, you may still have to pay the legal expenses to defend yourself.

Getting covered doesn’t have to be confusing, time-consuming, or expensive. Simply Business can help find affordable coverages many small businesses need in just minutes. All from leading insurers and all online, 24/7. They’ve done that for more than 1 million businesses worldwide.

Simply Business offers same-day coverage for most policies and their licensed agents can answer your questions on the phone. Readers, when it’s time to insure your business, be sure with Simply Business.

📈 Stocks

S&P 500 5,375.86 (+1.67%)
DJIA 39,606.57 (+1.07%)
NASDAQ 16,708.05 (+2.50%)
BRENT CRUDE 66.16 (-0.02%)
* Prices as of Apr 24th, 12:20 AM UTC

Boeing Q1 2025 Results Show Signs of Recovery Despite Ongoing Challenges

Boeing reported Q1 2025 revenue of $19.5 billion, beating estimates of $19.38 billion, driven by a 57% increase in commercial airplane deliveries—from 83 to 130 aircraft.

The 737 program saw notable momentum, with plans to scale production to 38 jets per month. Non-GAAP EPS improved to a loss of $0.49, better than the expected $1.18 loss, marking operational progress despite negative operating margins of (6.6)%.

Defense Segment Still Struggles
Defense, Space & Security revenue declined 9% to $6.3 billion, with modest margin growth to 2.5%. The segment remains under pressure from fixed-price contract charges. A new fighter jet contract offers potential, though it hasn't yet been added to the backlog.

Steady Performance in Services
Global Services maintained its strength, with margins rising to 18.6%. Key milestones included the delivery of the 100th 767-300 Boeing Converted Freighter, reinforcing the segment’s value in long-term fleet management.

Cash Flow and Balance Sheet
Free cash flow was negative $2.3 billion, with cash and securities declining to $23.7 billion from $26.3 billion. Boeing reduced its total debt to $53.6 billion, aided by the repayment of maturing bonds.

Outlook and Strategic Focus
Boeing aims to stabilize and increase production, especially for the 737, and strengthen its supply chain. Management is prioritizing regulatory compliance and risk management in defense contracts. Despite headwinds, high commercial demand supports a cautiously optimistic outlook.

China Tensions Impact Deliveries
CEO Kelly Ortberg confirmed that China has stopped accepting Boeing planes due to ongoing trade tensions. This adds uncertainty, though some of the undelivered jets may be redirected to other customers.

Travel troubles: U.S. air arrivals fell about 10% in March year-over-year, but Delta and United CEOs say rising international and premium travel is offsetting weaker domestic and inbound tourism.

Airlines appear to be in trouble, however. Alaska Airlines said it expects a six-percentage-point hit to revenue in the second quarter.

The carrier, which merged with Hawaiian Airlines last year, said it wouldn’t update its full-year forecast because of “economic uncertainty and volatility,” but that it expects to remain profitable in 2025.

Similarly, Southwest Airlines pulled its full-year 2025 and 2026 EBIT guidance, citing “macroeconomic uncertainty.” The carrier plans to cut its schedule in the second half of the year, following Delta Air Lines and United Airlines.

Look here: The European Union fined Apple and Meta hundreds of millions of euros each for violating digital competition laws. Apple was penalized for breaking “anti-steering” rules, while Meta was found to have forced users to share data or pay for ad-free access. Some say this is in response to tariffs. Elsewhere, Tesla’s Optimus humanoid robots hit by China’s rare earth restrictions. Lastly, rumors are that White House is mulling lowering China tariffs to ease trade tensions.

More earnings:

  • Chipotle missed first-quarter revenue estimates and said same-store sales dropped for the first time since 2020. Chipotle also lowered the top end of its same-store sales outlook for the year.

  • IBM reported better-than-expected earnings and revenue for the first quarter. The company maintained its full-year forecast even in the face of what CEO Arvind Krishna called a “fluid” economic environment. IBM’s stock has been an outperformer in tech this year, rising 11% while the Nasdaq is down 14%.

  • SK Hynix quarterly profit soars 158% to top estimates as chip demand surges on AI boom. Revenue rose about 42% in the March quarter compared with the same period a year earlier, while operating profit surged 158%, year on year. On a quarter-on-quarter basis, revenue dropped 11%, while operating profit fell 8%.

  • SAP reported a 58% year-on-year increase in first-quarter operating profit (in constant currency) on Wednesday and reaffirmed its full-year cloud revenue outlook. The German software giant, which recently became Europe’s most valuable public company, expects 2025 cloud revenue to remain between €21.6 billion and €21.9 billion in constant currency.

Exciting: PayPal introduces 3.7% yield on stablecoin balances to boost payments activity. Also, Meta has made ads on Threads available to all eligible advertisers. Lastly, Discord names new CEO ahead of potential IPO as co-founder steps down.

💵 Personal Finance

Grads Want $100K — Reality Doesn’t Always Match

Rising college graduates are aiming high, with the class of 2025 expecting to earn an average of $101,500 in their first job. But the reality is more grounded — the average recent grad makes around $68,400.

Is $100k a fair starting salary?

Login or Subscribe to participate in polls.

Where $100K is Realistic
While not common, six-figure starting salaries are possible in certain fields. Here are the most promising roles for 2025 grads:

  • Big Data Software Engineer: $112K–$148K

  • Radiology Nurse: $73K–$161K

  • Hydraulics Engineer: $98K–$119K

  • Program Analyst: $69K–$116K

  • Telecom Specialist: $60K–$112K

  • Business Developer: $52K–$112K

  • Real Estate Associate: $57K–$113K

  • Supply Chain Manager: $79K–$133K

  • Home Health PT Assistant: $85K–$117K

  • Consulting Associate: $50K–$105.5K

You can showcase freelance or consulting experience from college to give yourself an edge. Program management is also a hidden gem — ideal for organized, communicative grads with leadership potential.

Also, salaries can vary widely by region. A consulting associate might earn $90K in New York or California, but just $60K in Kansas City.

💰 Be a Better Investor

“Debt is like any other trap, easy enough to get into, but hard enough to get out of.”

Henry Wheeler Shaw

What did you think of today's newsletter?

Login or Subscribe to participate in polls.

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.