The Rundown - Uber Expands Waymo Partnership, Boeing Workers Strike for First Time Since 2008

Episode Date: September 13, 2024

Stock market update for September 13, 2024.

Public.com presents the rundown, your daily market update in five minutes. My name is Zadmani, and today is Friday, September 13th. In today's episode, we look ahead to next week's Fed meeting and try to figure out if they're going to be cutting rates by 25 or 50 basis points. We also tell you about trouble brewing at Boeing. The largest union just went on strike. We got some good news for United Airlines Flyers. Free Wi-Fi is coming, and it's going to be fast. Then stick around to the end of the show to find out how much money pet owners are spent.

on pets. It's now more than childcare. All right, let's go. Stocks have been hot this week. The S&P and NASDAQ both finished higher for the fourth day in a row. The S&P was up 0.8% and the NASDAQ was up more than 1% on Thursday. It looks like investors have been buying the dip all week and trying to erase the carnage in the markets from last week where stocks had the worst week of the year. And if we get a really nice rally today, stocks could be in the green for the month of September. Hopefully some of you guys bought the dip, especially in some of these tech stocks like Nvidia

because they have been flying this week. This is all setting up really nicely for next week's Fed meeting where the Fed is likely to announce the first rate cut since 2020. Now, the only question is, how big of a rate cut cut are we going to get? Now, the Fed likes to cut rates in 25 basis point increments, or 0.25% so they can study the effects of the rate cuts on the impact that it's having. And for most of this week, the markets expected the Fed to cut rates by 25 basis points. The CME Fed Watch tool was showing a CETT,

75% chance of a 25 basis point cut. But over the last day or so, there's been some people out there thinking that the Fed should go a full 50. Like former New York Fed chief Bill Dudley thinks the Fed should cut 50 basis points to help prop up the weakening labor market. And the Wall Street Journal reporter Nick Timorouse, who's very plugged into the Fed, had an article yesterday talking about how the Fed is still undecided on what they're going to do, 50 or 25. If the labor market is weakening, a 50 basis point cut would help because it would make borrowing money cheaper, which could help spur the growth of the economy. But on the flip side, it could be a little bit. also be seen as a panic move. Like, if everything's okay with the economy, why is the Fed cutting so

aggressively? It's like when I ask my wife how she's doing and she says that everything is fine, but then ends up giving me the silent treatment. It's like, is there a problem? I mean, that's going to, that might cause a panic, you know? So we'll see what the Fed decides to do. I still think they're going to go with a 25 basis point cut because they don't want to spark a panic in the markets. But we'll officially find out next week. The Fed meeting starts on Tuesday and ends on Wednesday with an interest rate decision and a Jerome Powell press conference. So it should be a good one. It's probably the most highly anticipated Fed meeting we've had all year. So we're going to be talking about it all next week. So make sure you guys are subscribed to the podcast to stay in the loop.

Let's run through some headlines. And we have to start with Boeing. You guys remember a few episodes ago where I talked about how Boeing had avoided a strike from its largest union? Well, I might have spoke too soon. Members of Boeing's largest union have walked off the job and have gone on strike the first time since 2008. This union represents about 33,000 Boeing employers. across the U.S. West Coast. A lot of these union members work at Boeing Seattle Factory, which makes the company's top-selling aircraft. So this is going to have an impact on Boeing.

Union members did not like the deal that Boeing offered them. In fact, more than 90% of the union voted against the deal, which offered employees a 25% pay increase over the course of four years. They were looking for more. So now the union plans to strike outside of 30 Boeing sites. I mean, this has to be the worst year in Boeing's history. They're just continuing to find themselves in a mess. Now, thankfully, it's not doors flying out of the sky from their planes,

but it's still an issue they're going to have to figure out they want to turn their business around. Boeing shares are down around 3% on this news. Let's stick with the aerospace theme and talk about United Airlines. I'm so pumped for this, okay? United Airlines is going to offer free Wi-Fi on flights. And it's going to be some good Wi-Fi because it's going to use Elon Musk's Starlink to provide Wi-Fi on board. United Plans to install Starlink Wi-Fi on all of its aircraft. That's more than a thousand planes over the next several years.

Now, the reason I'm very hyped about this is that I live in Houston, and Houston is a major hub for United Airlines, so whenever I fly, I tend to take United Airlines. And because I'm addicted to my phone, I would always pay the $8 for the Wi-Fi on the flight. And the Wi-Fi would usually be terrible. But it looks like soon not only will the Wi-Fi be free, it's also going to be good,

because Starlink is pretty awesome. And sticking with the transportation theme, Robotaxies are coming to Austin and Atlanta. Uber and Waymo are expanding their partnership, and riders in Austin and Atlanta will soon be able to order a Waymo driverless Robo Taxi through the Uber app. Waymo Robo taxis have been operating in other cities like Phoenix, San Francisco, and L.A. for a while now, and they're pretty popular. Waymo says they're doing around 100,000 rides a week now.

Now, what's interesting is that these Waymo rides will only be available via the Uber app for Austin and Atlanta. Unlike in L.A., San Francisco, or Phoenix, where you could use the dedicated Waymo app to order a ride. You have to go through Uber in Atlanta and Austin. I wonder if that's because Uber has some exclusivity with Waymo as part of the partnership. I'm not sure. But yeah, I'm excited. I had to see these roll out. I wish it would bring them to Houston soon. Shares of Uber are up 5% and Google is up 1% in reaction to the story. Let's talk about some stocks making moves today. Let's start with Oracle because they continued to be on a heater this week. Shares are rising again this morning after the OG tech giant raised 2026 full year revenue guidance by $1.5 billion.

We talked about Oracle earlier this week. They reported earnings and they had strong performance driven by AI-related offerings. Oracle says that they expect to make $66 billion in sales in 2026 and $104 billion by 2029. Shares of Oracle are up more than 6% on this news. Now, on the flip side, a stock not doing so good is another tech company, Adobe. Shares are falling out for the company reported fourth quarter earnings and reported disappointing guidance. Adobe makes a lot of the popular software used in the creative industry like Photoshop and Premiere Pro for video editing. And I think investors and analysts were hoping that Adobe would see an increase,

in business due to AI. But that doesn't seem to be the case. In fact, it seems like startups are starting to steal business from Adobe. Like, for example, Canva, which is a fantastic tool, and much cheaper than Adobe. Shout out to them. So this earnings report is spooking investors. Adobe stock is down around 10% in reaction to these earnings. Let's wrap the show with a fun fact. Americans are spending a record amount of money on their pets. Last year, in 2023, Americans spent $186 billion on their pets. This is according to the Bureau of Economic Analysis. That amount includes everything from food, vet visits, and toys.

And what's interesting is that spending really jumped after 2019 because pet adoption skyrocketed during COVID. Like everyone knows somebody that got a pet during COVID. Between 2019 and 2023, pet spending grew by an annual rate of 11%. Before 2019, it was growing around 5%. So it really picked up. I mean, at this point, Americans are spent. spending more money on their pets than they did on child care last year.

But if you were to ask millennial and Gen Z pet owners, they pretty much consider themselves to be parents. I guess this could be a bullish sign for pet companies. Well, all right, guys, that's the rundown for today. That's the rundown for this week. What a fantastic week. Stocks were up every single day this week. Hopefully the markets can finish off the week on a high note. Next week should be a good one. So make sure you guys are subscribed to the podcast if you haven't already. And for those of you guys that left a comment on Spotify on yesterday's episode, thank you guys so much for all the kind. I read through all of them. It really means a lot. Thank you guys again for listening. Shout out to

Connor and Mike for all the help behind the scenes. Have a great weekend, everybody. We'll see you guys back here on Monday. This is the rundown, your real-time resource for news events and trends in the markets. All views presented in the show reflect the opinions of the guests. You should not mention of a publicly traded security as recommendation to buy, sell or hold that security. Run-down guests are not financial advisors and are not affiliated with public holdings or subsidiaries. You should make your own financial and investment decisions or consult. Respected professionals. Learn more at public.com disclosures. In partnership with Zaited Money. Brokered services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.