Diamonds and Dogs
A little bit of good news for Boeing (BA). Boeing is trading up 2% on news the FAA is expected to approve Boeing Co's 737 MAX jet to return to service as soon as late June. This target if achieved, means U.S. airlines would likely not have to greatly extend costly cancellations of 737 MAX jets they have already put in place for the peak summer flying season. American Airlines, Southwest Airlines Co and United Airlines have already suspended 737 MAX flights in July and August.
Trade tensions not good for the shoe industry. Foot Locker (FL) is down 16% near its 52 week low following earnings. Foot Locker missed earnings estimates as sales rose just 2.6% to $2.08 billion. The company also cut full year guidance due in part to lower activity of share buybacks. Foot Locker may also be cutting guidance in advance of the trade tensions. Foot Locker and more than 170 shoe and retail companies, including Adidas and Nike, sent a letter to President Donald Trump urging him not to double down on new tariffs. As the shoe companies have indicated, the proposed additional tariff of 25 percent on footwear would be catastrophic for consumers, their companies, and the American economy. We'll see.