😮 No rate cut

Together with Bonner Private Wines 

Good morning investors! Stocks turned red yesterday as the market reacted to cut-related news. Today, it is time for Apple, Amazon, Meta, and more to report.

Today we cover:

• No rate cuts in March. 😮 

• Boeing announces earnings. ✈️

• XRP co-founder’s wallet gets hacked. 🙊 

Follow us on Twitter for more.

📊 Economy and News 

No March rate cut

“I don’t think it’s likely that the committee will reach a level of confidence by the time of the March meeting” to cut rates, Powell said in yesterday’s meeting.

His comments sent stocks tumbling as bonds jumped higher.

He said that inflation is one of the major reasons why a rate cut might not be happening soon. However, he didn't signal another hike, which some sections had feared.

The Fed is looking for the right time to cut rates and will pull the trigger once inflation gets closer to its target of 2%.

Powell added that a March rate cut “hasn’t been ruled out but it is highly unlikely.”

The Fed isn't scared of inflation climbing higher despite the global situation and increasing supply chain issues, but bringing it down to the Fed's target of 2% could take some time.

Experts now see a rate cut in May, when the Fed will meet again to discuss the situation. However, another meeting is expected in April but a rate cut then is not very likely.

Warning: Barclays and other institutions feel that it is too early to think inflation has been beaten. It expects things to worsen, especially due to supply chain issues. But, some people believe that it is time for freight rates to come down.

Global hits:

• Oil giant Shell posts full-year profit beat, announces $3.5 billion share buyback.

• Demand for shipments from China via rail through Russia has ‘skyrocketed’ since the Red Sea attacks.

• Robocalls that use AI-generated voices get a step closer to being outlawed.

📈 Stocks

S&P 500 4,845.65 (-1.61%)
DJIA 38,150.30 (-0.82%)
NASDAQ 17,137.24 (-1.94%)
BRENT CRUDE 80.31 (-0.24%)
* Prices as of Feb 1st, 12:20 AM UTC

Boeing finally had a good day

Boeing rebounded yesterday after the company reported fourth quarter results that topped expectations. However, the plane maker has suspended its 2024 guidance due to the Alaska Airlines 737 Max 9 situation.

The numbers: Boeing reported top line revenue of $22.02 billion vs. $21.07 billion expected.

Commercial sales revenue came in at $10.48 billion vs. the $10.04 billion expected.

It reported an adjusted loss per share of $0.47 vs. a loss of $0.76 estimated.

Boeing reported operating cash flow of $3.38 billion and a core operating margin of 0.4%, compared to last year's margin of negative 3.2%.

More importantly, for 2023, Boeing had a free cash flow forecast of $3 billion to $5 billion and an operating cash flow estimate of $4.5 billion to $6.5 billion in 2023. It met those expectations with an operating cash flow of $3.38 billion.

The apology: The CEO apologized for the recent incidents and took full blame for the situation.

Production: Analysts see a fall in demand and a decrease in production due to sanctions and lost trust in the company. It has plans to control production until the FAA is satisfied with safety and quality.

The stock jumped 5.29% after the news to close at $211.04.

Just in: Boeing is sued by shareholders following the MAX 9 blowout.

Sponsored by Bonner Private Wines

Fill Your Glass with Rare, High-Altitude Wine from the Ends of the Earth 

The grapes used to make these wines are grown at an altitude of 6,000-9,000 ft in elevation deep within the Andes Mountain.

Some of the rarest, and finest: They’re made in such small quantities, that most won’t make it to the US. But wine lover and adventurer Will Bonner has made it his mission to import unique, small-batch wines that other importers overlook.

And he’s sharing them through the Bonner Private Wine Partnership — which sends you three bottles of unique, small-batch wine every two months. Straight to your door.

• Rich, complex flavor: Taste the trademark high-altitude flavor, with notes of blackberry, smoke and plum. 

• Packed with antioxidants: These wines have 10x levels of resveratrol, high levels of flavonoids and 93% less sugar. 

Get a complimentary mystery bottle of small-batch, limited production wine from their cellar when you join the Extreme Altitude Club.

🔐 Crypto

Bitcoin $42,133, (-0.84%)
Ethereum $2,271 (-0.54%)
Total market cap $1.62T (-1.4%)
* Prices as of Feb 1st, 12:20 AM UTC

A look at crypto

Ripple co-founder Chris Larsen’s XRP wallet yesterday got hacked for an estimated $112 million. The news had a major impact on Ripple, which fell about 5%. However, there is some hope for the coin as experts think a Coinbase victory could stop the SEC from appealing the XRP ruling.

This incident proves that anyone can get hacked. There are several ways to protect your assets and now Singapore is recommending hardware wallets against crypto drainers. This is important now since more people are now using cryptocurrencies, especially with platforms like Zellix making it possible to use Bitcoin to purchase anything on Amazon.

💵 Personal Finance

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

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