EMERGING NEWS 

Dow Futures Drop, American Airlines Gains, and Tesla Soars

The dollar was a bit of a loser today, pulling back a little from yesterday’s highs. Earlier today a disappointing report on inflation further emphasized the Federal Reserve’s months-long forecasts for accelerating rate hikes (still, strong jobs data remains the Fed’s top economic takeaway). Other interest rates markets remained firm, as the U.S. 10-year treasury fell 0.3 to 3.0 percent, while the German bund extended its early-week rally to hit 0.6 percent.

In stock trading, the American flag carrier was one of the biggest movers on the day. Shares were up nearly 3 percent, extending its run from last week. American cut prices for economy tickets by up to $12 as part of an effort to offset rising fuel prices and costs associated with the partial shutdown of the U.S. government. American was joined in the cut by Delta, which said it will also lower economy fares.

Apple said today it will allow new customers to purchase older devices at discounted prices for a limited time. The current rule (long since repealed) allowed customers to buy the iPhone SE for as little as $100, while iPad customers could get the iPad Air for as little as $300. Apple’s pricing policy will be more competitive, and the rule change should drive many users towards refurbished Apple hardware.

Yesterday, Tesla said its top cash short-term securities would rise dramatically in the coming months, thanks to the company’s final sale of a 2021 convertible debt. The company’s largest lender, Saudi Arabian sovereign wealth fund, made a $2.1 billion investment in the company at the end of April, after a similar investment last year.

Meanwhile, Goldman Sachs cut its estimates on Amazon and added Apple to its conviction buy list.

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