Sign InStock Market Continues Upward Trend, GM's Electric Vehicle Business Gains Momentum
Alex Vellor
Fed's Rate Cut Continues to Fuel Stock Market Growth
U.S. stocks continued their upward trajectory on Monday, following the Federal Reserve's significant rate cut last week.
The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all experienced modest gains, with the Dow reaching another record high. As investors anticipate the Fed's next policy decision in November, market sentiment is expected to be more sensitive to signs of economic weakness. The upcoming Conference Board's consumer confidence reading for September will provide valuable insights into this regard.
Premarket Movers:
| Company | Stock Change | Details |
|---|---|---|
| Boeing (NYSE:BA) | Fell 0.1% | Offered a sweetened labor deal to over 30,000 striking workers in the US Pacific Northwest, but the union refused to put it to a vote. |
| Deere & Company (NYSE:DE) | Fell 1.1% | Donald Trump threatened the agricultural manufacturer with a "200% tariff" if it moves production to Mexico. |
| Salesforce (NYSE:CRM) | Rose 1.7% | Piper Sandler upgraded its investment stance to “overweight” from “neutral”, projecting free cashflow per share to double to $20 by 2029. |
| Tesla (NASDAQ:TSLA) | Rose 0.9% | Barclays expects third-quarter EV deliveries to increase by 8% year-over-year to approximately 470,000 units. |
| Visa (NYSE:V) | Fell 1.9% | The US Department of Justice is preparing an antitrust lawsuit against the company, alleging anti-competitive behavior. |
| Snowflake (NYSE:SNOW) | Fell 3.5% | Announced plans for a private placement of $2 billion convertible notes. |
| Starbucks (NASDAQ:SBUX) | Fell 1.6% | Jefferies downgraded its stance to “underperform” from “hold”, citing the CEO-fueled rally as “overdone”. |
| Lowe’s (NYSE:LOW) | Rose 1.6% | Oppenheimer upgraded its stance to “outperform” from “perform”, noting that home improvement demand tends to improve as lending rates moderate. |
GM's Electric Vehicle Business Takes Off
Meanwhile, General Motors' (NYSE:GM) electric vehicle business is gaining momentum.
After facing challenges due to slow demand and production issues, GM's EV sales have seen a substantial increase. The company sold 21,000 EVs in the U.S. in July and August, and sales were up 70% through August compared to the previous year.
This growth is fueled by GM's expanding EV lineup, which offers vehicles priced from around $35,000 to $300,000. Rory Harvey, GM president of global markets, expressed confidence in the company's ability to outpace its competitors in the EV market.
Boeing's Offer to Striking Workers
In other news, Boeing (NYSE:BA) has presented a sweetened labor deal to its striking workers in the U.S. Pacific Northwest.
The offer includes a 30% general pay bump over four years, improved retirement benefits, and an increased ratification bonus.
While Boeing has labeled this as its "best and final" offer, the International Association of Machinists and Aerospace Workers District 751 has rejected it, stating that it was "thrown at us" without prior negotiations.
A prolonged strike could have significant financial implications for Boeing, especially during a time when the company is already facing production delays and increased scrutiny over its safety record. Finding a resolution to the labor dispute is crucial for Boeing's future success.
About The Author
Alex Vellor
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