Sign InMonday Markets: Microsoft’s AI Push, Boeing Faces Losses, Disney CEO Search
Alex Vellor
U.S. stocks have been on a winning streak, with both the S&P 500 and the Dow Jones Industrial Average posting gains for six consecutive weeks. This impressive run culminated in both indexes closing at record highs on Friday. Looking ahead, a busy week of earnings reports and the looming presidential election could influence the next move for markets.
Premarket Movers:
| Company | Ticker | Movement | Reason |
|---|---|---|---|
| Tesla | TSLA | -1.1% | Stock fell ahead of quarterly results and focus on robotaxi plans. |
| ServiceNow | NOW | -2% | Downgraded by Morgan Stanley to "equal-weight" from "overweight". |
| Boeing | BA | +3.2% | Reports of potential asset sales and a vote on a new labor deal. |
| Kenvue | KVUE | +5.7% | Activist investor Starboard Value takes a stake in the company. |
| Spirit Airlines | SAVE | +36% | Extended deadline for refinancing 2025 bonds with U.S. Bank. |
| United Parcel Service | UPS | -2% | Barclays downgraded to "underweight", citing increased competition. |
| ASML Holding N.V. | ASML | -1% | Bernstein lowered price target due to a challenging 2025 outlook. |
Boeing’s Struggles Amid Strike and Production Halt
Boeing (NYSE:BA) is expected to report disappointing earnings this week, partly due to a machinist strike that has shut down aircraft production for over a month.
The strike might soon be over, though, as Boeing and its machinists’ union have reached a tentative agreement on a new contract. The deal, which workers are set to vote on this Wednesday, includes a 35% wage increase over four years, a $7,000 signing bonus, and better 401(k) contributions.
Despite these efforts to resolve labor issues, Boeing is still facing significant financial challenges. Earlier this year, the company was hit by a major setback when a door plug blew out on one of its planes. Boeing has already warned investors that it expects to report a deep loss for the quarter. Additionally, it plans to cut 10% of its workforce as part of its ongoing efforts to control costs.
Disney’s Search for Iger’s Successor
On a more stable front, Disney (NYSE:DIS) is preparing for a leadership change as CEO Bob Iger's contract is set to expire at the end of 2026. The company announced it will name a successor by early 2026. Former Morgan Stanley CEO James Gorman will step in as Disney's chairman next year, replacing Nike’s Mark Parker.
Bob Iger’s potential successors are Disney’s top executives, including ESPN Chairman Jimmy Pitaro, Disney Experiences Chairman Josh D’Amaro, and Disney Entertainment Co-Chairmen Dana Walden and Alan Bergman. These leaders have all met with the company's succession committee in recent weeks. It remains unclear whether Iger will continue on the Disney board after his CEO term ends.
Microsoft’s AI Push Takes Aim at Salesforce
Meanwhile, Microsoft (NASDAQ:MSFT) is making a strong push in the artificial intelligence (AI) space, taking on rival Salesforce. Starting next month, Microsoft will let businesses create their own AI agents through its popular enterprise platform, Dynamics 365. This move follows Salesforce’s launch of its own AI tools in September, signaling growing competition in this red-hot sector.
Microsoft is also introducing 10 new autonomous agents to Dynamics 365, which offers enterprise resource planning (ERP) and customer relationship management (CRM) solutions. These new AI agents are designed to streamline business operations by automating tasks and providing smarter, more efficient solutions for users.
About The Author
Alex Vellor
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