The Daily Business and Finance Show - Saturday, 20 July 2024 We get our business and finance news from Seeking Alpha and you should too! Subscribe to Seeking Alpha Premium for more in-depth market news and help support this podcast. Free for 14-days!
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Welcome to the Daily Business and Finance Show. Elon Musk cuts ties with CrowdStrike, Trump vows to end EV mandates causing market jitters, and CrowdStrike faces a major outage. AMD suffers continued losses while Elliot Management invests in Starbucks. Serve robotics sores with NVIDIA's backing, but SunPower plummets as analysts predict its downfall. The S&P 500 experiences its worst week since mid-April, and Delta cancels another 600 flights due to an IT outage. Stay tuned after the short ad break to learn more about these breaking stories. "There are some things that are too good to keep a secret. Like how your AMX Platinum card helps you have the perfect trip. I'd like to check into the Centurion Lounge. Or how it seems like you always get those hard to snag tables. Ooh, yum. And how you get the most out of select can't miss events. With access to the Centurion Lounge, Resi Priority notified, and AMX card member benefits at select events, you'll have to share. That's the powerful backing of American Express. Terms apply. Learn more at americanexpress.com/with AMX." Tesla and SpaceX CEO Elon Musk announced the removal of CrowdStrike from their systems. A Windows host outage caused by an update to CrowdStrike's cybersecurity platform led to global disruptions affecting Tesla factories and various sectors. CrowdStrike CEO confirmed the issue is resolved and clarified it was not a cyberattack. Shares of U.S. electric vehicle automakers fell after former President Trump vowed to end the electric vehicle mandate if re-elected, calling it a "green new scam." Stocks of Rivian, Tesla, Lucid, Ford, and General Motors dropped. Trump aims to redirect funds from electric vehicles to infrastructure. A global computer outage disrupted air travel and hit cybersecurity from CrowdStrike hard, with shares dropping 14%. Woodbush Securities called it a "major black guy," but noted it's not a heck. Competitors like Palo Alto Networks and Fortinet saw gains. Microsoft shares fell 1.4%. Micro devices shares fell for the 7th consecutive session, closing 2.7% lower at $151.58 on Friday. The stock has lost over 14% in six sessions but is up nearly 6% this year, compared to a 16% rise in the S&P 500 index. Concerns include potential U.S. export controls and former President Trump's comments on Taiwan's defense funding. AMD announced a $665 million acquisition of European artificial intelligence lab Silo AI to compete with NVIDIA. Other semiconductor stocks also declined. Micron technology in NVIDIA dropped around 2.7%, while Taiwan's semiconductor manufacturing company in Intel fell over 3% and 5%, respectively. Starbucks shares searched 7% on Friday after a Wall Street Journal report revealed that activist investor Elliot Management has acquired a significant stake in the company. Elliot is reportedly working with Starbucks to improve its share price amid profit pressures from wages and promotions. This marks the first weekly gain for Starbucks in four weeks. Server robotics shares surged over 65% after NVIDIA Corporation disclosed a stake in the company. Server purchased 1.5 million shares for $2.42 each, totalling around $3.7 million, stemming from a convertible promissory note held by NVIDIA. Meanwhile, NVIDIA's stock dipped 1.3%. SunPower Corporation shares dropped 48.2% on Friday to a record low of 72 cents. Guggenheim Securities labeled the stock worthless, forecasting delisting and asset sales due to mounting debt. Analyst Joseph OSHA believes this signifies the end for SunPower as an operating business setting a new price target of $0. The S&P 500 fell 1.97% this week, closing at 5,505 points its worst performance since mid-April. Technology stocks led the decline after a soft consumer inflation report. The Russell 2000 index rose 1.50%. Six of 11 sectors ended in the red energy in real estate gained over 2%. Delta Airlines canceled over 600 flights on Saturday due to a major IT outage caused by a defect in CrowdStrike software affecting Microsoft systems globally. The airline, which saw more than 1,200 cancellations on Friday, is offering re-booking options and notifying customers via the Fly Delta app and text messages. Thanks for tuning into the daily business and finance show. Stay informed. Stay ahead. Catch you next time for more insights and updates. I'm Montgomery Jones and I'm Amalia Duprey. Good night for now, until we cross paths again tomorrow. This content is sourced from the Seeking Alpha website, so support our podcast by becoming a Seeking Alpha Premium subscriber. See the show notes page for links to sign up. This episode is produced by Classic Studios. This podcast provides information only and should not be construed as financial or business advice. Check out our other podcasts in our network at classicstudios.com. [MUSIC]
