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S&P and Nasdaq rise as investors ignore shutdown worries, hawkish talks
Investors shrugged off concerns about a government shutdown, and Federal Reserve officials' hawkish comments. The S&P 500 index and Nasdaq index rose on Monday. The rise in stock prices reflects a risk-on attitude among investors. Their expectations of a Fed that is dovish have allowed equities to maintain lofty valuations even as inflation fears and labor market uncertainty persist. "Dip purchasers are rewarded on this market." "One day, they will not, but until proven differently, you need to buy dips," Matthew Tuttle said, CEO of Tuttle Capital Management. At 11:52 am. The Dow Jones Industrial Average dropped 92.77, or 0.2% to 46,154.52 ET. The S&P500 gained 11.59 points or 0.17% to 6,655.29 while the Nasdaq Composite increased 104.87 or 0.47% to 22,588.94. The focus of attention is on the funding standoff between Republicans, and Democrats. This has led to the possibility of a government shutdown starting Wednesday. Financial markets have generally ignored government shutdowns. Goldman Sachs economists wrote that prior shutdowns were not comparable to the possible shutdown this week. A possible shutdown could delay the release of important economic data including the nonfarm payrolls report on Friday and affect the markets' outlook. Investors also monitor the comments of several Fed policymakers to see if they show any concern about a possible loss of visibility of the economy should a shutdown occur. Beth Hammack of the Cleveland Fed, one of the Fed's most hawkish officials, and who has not voted on the policy for this year, stated on Monday that the central bank must maintain a restrictive monetary policies to cool the inflation. The traders, however, have priced in a 91.4% probability of a rate cut of 25 basis points at the next Fed Meeting. The S&P technology sector increased by about 0.5%. Micron Technology grew by 4.1% while Nvidia gained 2.1%. Lam Research gained 2.4% after Deutsche Bank upgraded its rating for the chip-making company from "hold" to "buy". The Nasdaq was also boosted by the stocks, which catapulted a broader semiconductor index into a new record high. AppLovin broke a record, and the stock was up 5.8%. Morgan Stanley increased the target price for the stock from $480 to $750. Dow Jones was weighed down by losses in stocks like Chevron (down 2.4%) and McDonald's (down 1%). The S&P 500 index has gone 103 days without dropping below its 50-day mean. This is an unusually high number of trading days that shows the strength of the market, BTIG noted, adding that the index could be due for a correction. Canopy Growth, Cronos Group, and Tilray Brands all have shares listed in the United States. Canopy Growth rose 15%, Cronos Group 13% and Tilray Brands 39.2%. Trump shared a video on Sunday promoting hemp-derived cannabidiol's health benefits. Electronic Arts rose 4.7% following the agreement to be taken privately in a deal worth $55 billion. On the NYSE, advancing issues outnumbered declining ones by a ratio of 1.18 to 1 and by a ratio of 1.1 to 1 on the Nasdaq. The S&P 500 recorded 30 new 52-week lows and four new highs. Meanwhile, the Nasdaq Composite registered 93 new highs with 55 new lows. (Reporting and editing by Sriraj Kalluvila, Shilpa Majumdar and Niket Nishant in Bengaluru)
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Highland selects Olympics-LA28 to provide 500 electric school buss for Games
LA28 announced on Monday that Highland Electric Fleets will be the official electric bus provider of the 2028 Olympic Games and Paralympic Games. This partnership will see 500 zero-emission school buses deployed to support transport operations. LA28 will repurpose yellow school buses that are already in use to transport accredited stakeholders to the Games. This approach, say the organizers, will reduce emissions and costs. Highland will be joining the LA28 Transport team to run a program that the partners have described as the first of its kind for electric school buses at the Games. The company will be responsible for the daily operations, including logistics and charging on site and depot management. Highland Electric Fleets, a division of Highland Electric Fleets, is proud to be partnering with LA28 in order to provide one of the largest electric school bus deployments ever assembled for an international sporting event. Together, we are proving that electric vehicles can be used to meet the needs of the largest stage in sport while providing zero-emission solutions for transportation. Los Angeles Mayor Karen Bass said the partnership was an example of utilizing existing resources to reduce emission and have a "lasting effect for Angelenos." Bass has called the Los Angeles Olympics a "no car" Games, and will encourage fans of the city to use public transport to navigate the vast city. Reynold Hoover, CEO of LA28, said that welcoming Highland Games was "an incredible move in the operational implementation of the 2028 games." LA28 has committed to minimizing the environmental impact of Games operations. The event will rely on the existing venues in Southern California and not build permanent infrastructure. Highland Electric Fleets, founded in 2019, provides electrification-as-a-service for school districts and other fleets. The company claims to have been the pioneer of the commercial vehicle-to grid program, using electric school buses. It also operates the largest project of its kind in the United States. (Reporting and editing by Lincoln Feast in Los Angeles. Rory Carroll is the reporter.
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PG&E announces $73 billion plan to meet data center energy demand
PG&E Corp, a U.S. utility, announced on Monday that it will spend $73 billion between now and 2030 to upgrade transmission systems to meet the surge in demand for electricity due to data centers. In July, the company said it was working on supplying 10 gigawatts of new electricity from data center projects in the next ten year. According to the U.S. Energy Information Administration, power consumption will reach record levels in 2025 and in 2026. This is due to a surge of demand in data centers, as a result of increased adoption in artificial intelligence. PG&E Corp. has also been accused of igniting many wildfires in California, including some that were the most deadly. It has made investments to improve its grid's reliability. The company stated that it would build 700 miles underground power lines, and upgrade 500 miles of wildfire safety systems between 2025-2026. California's utility announced on Monday that its share of the $18 billion Wildfire Fund Continued Account, under SB 254, will drop to 47.85%. It was previously 64.20%. Utilities now have first refusal rights on insurance subrogation. SB 254 is a California law that reforms California's wildfire liability framework and funding for utilities including PG&E.
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S&P 500 and Nasdaq are up as investors ignore hawkish talks, wait for shutdown clarity
S&P 500 index and Nasdaq index both gained on Monday. Investors shrugged of hawkish remarks by a Federal Reserve official, and weighed in on the potential impact of a government shutdown. These moves are a continuation of Friday's gains. An in-line inflation reading kept the hopes for rate reductions alive, and lifted all three main indexes despite their weekly declines. Beth Hammack of the Cleveland Fed, one of the Fed's most hawkish officials, and who did not vote on the policy for this year, stated that the central bank must maintain a restrictive monetary policy in order to cool the inflation. The traders, however, have priced in a 91.4% probability of a 25 basis-point cut during the next Fed meeting. At 10:03 am. The Dow Jones Industrial Average dropped 17.64 points or 0.04% to 46,228.17 ET. The S&P500 gained 25.48, or 0.38 %, to 6,669.18. Meanwhile, the Nasdaq Composite grew 178.39, or 0.79% to 22,662.67. The S&P 500 Technology sector gained about 1 percent. Nvidia gained 2.8% while Micron Technology gained 4.9%. Lam Research gained 2.6% after Deutsche Bank upgraded its rating for the chip-making company to "buy" instead of "hold". Stocks drove the Nasdaq to record highs and the semiconductor index. S&P 500 stocks in communication services increased by 0.8%. Stocks in the energy sector fell 1.9%. Dow Jones suffered from losses in stocks like Chevron (down 2.3%) and McDonald's (down 0.7%). The focus of attention is on the funding standoff between Republicans, and Democrats. This has led to the possibility of a government shutdown starting Wednesday. Mel Casey is senior portfolio manager of FBB Capital Partners. It could be an opportunity for Republicans, to push through additional government spending cuts. Some analysts have warned, however, that a government shutdown could delay the release of important economic data. This includes Friday's report on nonfarm payrolls, which could cloud the market outlook. The S&P 500 index has been strong for 103 days, BTIG noted, and that it may be due for a correction. Investors will be watching the comments of other Fed policymakers throughout the day for signs of concern about the possible loss of economic visibility if a shutdown occurs. Canopy Growth, Cronos Group, and Tilray Brands all have shares listed in the United States. Canopy Growth grew by 16.3%, Cronos Group by 11.6% and Tilray Brands gained 36.1%. Trump shared a video on Sunday promoting hemp-derived cannabidiol's health benefits. Electronic Arts rose 4.8% following the agreement to be taken privately in a deal worth $55 billion. Western Digital reached a new record high and was last up by 9.2% to top the benchmark after at least 2 brokerages increased their target price for the data storage product maker. Seagate Technology soared 7.1%, hitting a new record after at least two brokers raised their price targets. Carnival's annual profits rose despite a 2.3% decline. On the NYSE, advancing issues outnumbered declining ones by a ratio of 1.15 to 1 and by a ratio of 1.24 to 1 on the Nasdaq. The S&P 500 recorded 25 new 52-week lows and four new highs. Meanwhile, the Nasdaq Composite registered 76 new highs with 41 new lows. (Reporting and editing by Sriraj Kalluvila, Shilpa Majumdar and Niket Nishant in Bengaluru)
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WestJet Canada says that some data about passengers was exposed by a cyber-attack
WestJet, a Canadian airline, said Monday that personal data of some passengers were exposed during a cyber breach in early this year. Payment information was not compromised. The airline reported that it had detected suspicious activity in June and determined later that an "advanced, criminal third-party" had gained unauthorised access to its system. Cybercriminals are increasingly attracted to the aviation industry because of its growing dependence on digital systems. Earlier this week, a ransomware assault on Collins Aerospace (a unit of RTX) disrupted major European airports. Check-in and luggage systems were crippled at hubs like London's Heathrow Airport and Berlin. WestJet stated that the types of data exposed by the breach varied, but could include names and contact details, travel documents, and information about reservations. During the breach, however, no card numbers or expiration dates, CVV numbers or credit and debit card numbers were obtained. In an email sent to U.S. citizens on Monday, the carrier stated that it worked closely with the Federal Bureau of Investigation, as well as the Canadian Centre for Cyber Security. It also notified the relevant authorities, such as the Attorneys General of U.S. States where residents were affected.
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After airlines protested, Schiphol cancels its plan to increase fees in 2019.
Amsterdam Schiphol Airport announced on Monday that it will freeze airline fees in 2026. The previously planned 5% hike was scrapped following discussions with airlines. Schiphol Airport, Europe's busiest, has increased the fees charged to airlines this year by 41% as part of its three-year plan for funding new investments in the airport. Fee increases will be used for noise reduction, including night flight charges. In a press release, CFO Robert Carsouw stated that "we understand the impact of the 2025 fee increase on airlines". Schiphol has a good financial performance, but some airlines find it expensive. We're talking about a 2026 freeze because of this. The airport has said that it is currently in discussions with airlines, and will announce a formal decision about the fees by the end October. Schiphol said that a voluntary contribution would be made by the airport to offset the planned increases, which were possible due to cost-control and efficiency measures. Marjan Rintel, CEO of Dutch airline KLM, called the planned 41% increase in fees for this year as "unreasonable" and "unwise", and said that it would lead to an increase in ticket price and reduce Schiphol’s international competitiveness. KLM's Schiphol base is under additional pressure due to a strike of ground crews demanding better wages and working conditions.
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US adds subsidiaries to its export blacklist
The U.S. took action on Monday against companies in China and elsewhere that used subsidiaries to circumvent restrictions on chipmaking technology and equipment. According to a Federal Register posting, the Commerce Department has issued a new regulation that expands its restricted export list (known as the Entity list) to include automatically subsidiaries owned by a company listed at 50% or more. This action has increased the number of companies who need licenses in order to receive American products and services. This rule will disrupt supply chains. The rule will make it harder for companies to determine if exports are restricted to a particular customer or supplier. According to the rule certain transactions can be permitted for 60 days. The Affiliates Rule is similar to "50% rule" for entities sanctioned through the Treasury Department Office of Foreign Assets Control. If an entity is listed as owning 50 percent or greater of a subsidiary, then licenses are required to export goods or technologies to that subsidiary. Many licenses may be denied. (Reporting and editing by Doina chiacu and Chris Sanders; Reporting by Karen Freifeld)
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Drones from Turkey are circling the Gaza flotilla of aid boats as they sail east
Flight data shows that Turkey joined Spain, Italy, and Greece to monitor an international flotilla sailing across the Mediterranean Sea carrying aid for Gaza on Monday, despite Israel's warnings to stop the mission. Flight tracking sites showed that for the past three days three long-duration drones from Turkey's Corlu base have been hovering over the flotilla. This highlights the growing interest of the international community in the boats, which have pledged to break an Israeli naval blocade around Gaza. The reason for the drone flight could not be confirmed. The Turkish foreign and defence ministers, as well as the intelligence agency, did not reply to comments. FLOTILLA RESUMES JOURNEY AFTER REPAIRS On Monday, the Global Sumud Flotilla - a group of civil boats that included parliamentarians and lawyers, as well as activists such Greta Thunberg from Sweden, a climate activist - was still hundreds miles away from Gaza's coastline. People on board reported that the flotilla was heading towards an area where previous flotillas had been intercepted. The tracking sites indicated that there were about 40 boats. The flotilla's progress has increased international tensions. This is especially true after drone attacks last week damaged some of the boats. The flotilla was not injured but it had to stop for several days for repairs in Greek waters before sailing again towards Gaza at the weekend. The mission is now expected to arrive in Gaza within four days, according to the organizers on Monday. Italy and Spain sent navy ships to the flotilla for humanitarian or rescue needs but they have not engaged militarily. Greece's coastguard also kept track of the progress when the flotilla entered its rescue zone. It warned Sunday that the flotilla is approaching a zone of high risk and repeated the proposal made last weekend for the flotilla take the aid to Cyprus to be distributed in Gaza by Roman Catholic Church. The flotilla rejected this idea. Concerns over a possible ISRAELI response "Israel has repeatedly shown that it has no redlines, so it's clear that we are concerned by what it might do." Benedetta Scudderi, an Italian member of the European Parliament, spoke to Radio 24 in Italy on Monday. Israel has not commented on the drone incident last week, but it has said in the past that it will use all means possible to stop the boats from reaching Gaza. It argues that its naval blocade is legal because it is fighting Hamas militants within the coastal enclave. The Italian newspaper La Stampa reported that Israeli President Isaac Herzog had assured the Italian Ambassador to Israel on Sunday that Israel would not "use lethal force" towards the members of the flotilla. The message was not confirmed immediately. Israel launched its Gaza offensive in response to the Hamas-led attack of October 7, 2023 on Israel, which resulted in 1,200 deaths and 251 hostages being taken back to Gaza. Gaza's health authorities report that the offensive has left over 65,000 dead in Gaza and many others in need of food or aid. Reporting by Alvise Armeni in Rome, Angeliki Koutantou and Tuvan Gümrukcu in Ankara and Omer Berberoglu and writing by Angeliki Koutantou. Editing and assistance by Edward McAllister and Aidan Lewis.
Democratic lawmakers oppose US plans to end government subsidies on school bus internet
A group of U.S. Democratic legislators on Monday called on the Federal Communications Commission chairman to withdraw plans to stop government subsidies for wireless technology on school buses, which were originally created as part of a COVID era program.
The lawmakers, led by Senator Ed Markey, noted that the FCC had allocated $48 million in its budget for 2024 to fund Wi-Fi for buses. More than 8,000 libraries and schools have also requested tens or millions of dollars to provide more than 200 hotspots for students and teachers.
The letter, signed by over 50 Democratic legislators, including Senators Ron Wyden and Mark Kelly as well as Ben Ray Lujan and Peter Welch, said that removing federal support would "force cutbacks in services and impose sudden costs on libraries and schools across the country." Brendan Carr, FCC Chair, asked the commission to reverse policies that were adopted by then-President Joe Biden. These policies allowed for subsidies for Wi-Fi on school buses as well as wireless hotspots which could be borrowed from libraries for online access. Carr stated that the proposal would "end the FCC funding of unsupervised screentime for young children."
Carr's spokesperson did not comment immediately. In May, the U.S. Senate voted to repeal FCC subsidies for hotspots and internet on school buses. Ted Cruz, chair of the Senate Commerce Committee, said that the rule does not require schools obtain parental consent prior to distributing hotspots subsidized by FCC or set meaningful filtering requirements. The House hasn't taken up the measure.
Jessica Rosenworcel, FCC chair at the time, said that by approving this program schoolchildren would be able to complete their homework on bus rides. She pointed out that some children in rural areas spend up to an hour on the bus going to or from school, or to athletic events. Those without internet access at home find it difficult to complete their nightly homework. Rosenworcel stated that the idea was "smart, creative and in line with the law". Reporting by David Shepardson, Editing by Mark Porter & Hugh Lawson
(source: Reuters)