5 things to know before the stock market opens Wednesday
Is Nvidia's Surge Behind Nasdaq's Record High?
The Nasdaq Composite achieved a milestone by surpassing 17,000 for the first time, largely driven by a significant rise in Nvidia's stock. In corporate news, T-Mobile announced plans to acquire a substantial portion of U.S. Cellular, including stores, spectrum assets, and customers in a deal worth approximately $4.4 billion. Meanwhile, American Airlines revised its second-quarter outlook downwards, citing an expected drop in unit revenues and lower earnings per share, amidst broader challenges in the airline industry.
Why did American Airlines lower its second quarter outlook, and how does this compare to its previous earnings estimate?
American Airlines lowered its second quarter outlook due to weaker pricing power and an expected decline in unit revenues5. Specifically, the airline now anticipates that unit revenues will fall by as much as 6% compared to the same period last year. This revision in the revenue outlook has impacted the earnings estimate, with the company now projecting adjusted earnings to be between $1.00 and $1.15 per share. This is a decrease from the previous forecast, which was in the range of $1.15 to $1.45 per share. The downgrade in both revenue and earnings expectations reflects challenges in maintaining pricing power and overall financial performance relative to its competitors.
What were the charges against Ryan Salame, the former FTX member, and what was the final sentence he received?
Ryan Salame, a former top lieutenant at the cryptocurrency exchange FTX, faced serious charges including defrauding the Federal Election Commission, conspiring to make unlawful political contributions, and conspiring to operate an unlicensed money-transmitting business4. He pleaded guilty to these charges last year. Ultimately, Salame was sentenced to 90 months, or seven and a half years, in prison, followed by three years of supervised release3. This sentence was more severe than the five to seven years recommended by prosecutors and significantly more than the 18 months sought by his defense team. Additionally, Salame was ordered to pay over $6 million in forfeiture and more than $5 million in restitution4.