Key Takeaways

• Alaska Airlines’ acquisition of Hawaiian Airlines received the approval of the Department of Transportation (DOT) Tuesday after the airlines agreed to a number of terms designed to protect travelers.
• The DOT and the two airlines agreed that their respective mileage reward programs would be protected in the merger, and to retain a number of routes serving Hawaii’s islands and rural areas in Alaska.
• The airlines said they will focus on closing the deal and getting an operating certificate from the FAA to operate the airlines under one company.

Alaska Airlines’ (ALK) acquisition of Hawaiian Airlines (HA) received the approval of the Department of Transportation (DOT) Tuesday after the airlines agreed to a number of terms designed to protect travelers.

The conditions include guaranteeing the value of the airlines’ respective mileage rewards programs will be retained through the deal, and keeping a number of routes connecting Hawaii’s islands to each other, Honolulu to the continental U.S., and serving rural areas of Alaska. The airlines also agreed to adopt policies like fee-free family seating and discounts for military families given their presence in Hawaii and Alaska, the DOT said Tuesday.

“Our top priority is protecting the traveling public’s interest in this merger,” DOT Secretary Pete Buttigieg said. “We have secured binding protections that maintain critical flight services for communities, ensure smaller airlines can access the Honolulu hub airport, lower costs for families and service members, and preserve the value of rewards miles against devaluation.”

Merger Moves Forward Following DOJ, DOT Reviews

The airlines announced the $1.9 billion deal in Dec. 2023, and last month reached the end of an antitrust review period without any competitive issues being raised by the Department of Justice (DOJ).

The companies said in a release following the DOT’s approval that they plan to close the deal “in the coming days,” and announced a merger team to lead Hawaiian Airlines until they receive a single operating certificate from the Federal Aviation Administration (FAA), allowing them to operate multiple airlines under one parent company, Alaska Air Group.

Shares of Alaska and Hawaiian Airlines were little changed in pre-market trading Wednesday following the news.

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Key Takeaways

• Tupperware will file for bankruptcy as soon as this week, according to reports.
• The company warned investors last year of its struggles to stay in business.
• Red Lobster, Joann, Express, 99 Cents Only, and Redbox parent Chicken Soup for The Soup Entertainment all filed for bankruptcy this year.

Tupperware Brands (TUP) plans to file for bankruptcy as early as this week, according to a Bloomberg report citing people familiar with the company.

The food-storage maker has been working with lenders on how to deal with its more than $700 million in debt and violated the terms of its loan agreement, the report said. This comes after Tupperware warned last year that certain conditions and events “raise substantial doubt” about its ability to stay in business. 

Several other well-known brands have already bit on the bankruptcy bullet this year. 

Red Lobster declared bankruptcy in June, closing at least 50 locations and asking a judge for permission to shutter 100 more. The seafood chain had been plagued by troubles including questionable management by the private equity firm that owned it and an Endless Shrimp promotion gone wrong, according to reports. It was acquired as part of a restructuring deal earlier this month.

Joann, the fabrics and crafts retailer, filed for bankruptcy in March. A bankruptcy judge approved a restructuring deal that slashed the company’s $505 million in debt and kept open its 815 stores.

Clothing retailer Express filed for bankruptcy in April before being acquired by a consortium led by brand management firm WHP Global. The move came roughly a year after it acquired the Bonobos brand from Walmart (WMT) for $25 billion.

Discount retailer 99 Cents Only declared bankruptcy in April. Nearly 200 of its stores reopened as Dollar Tree (DLTR) locations following bankruptcy proceedings, according to reports.

Chicken Soup for the Soul Entertainment, the parent company of movie rental service Redbox, filed for bankruptcy in June and revealed it owed millions to more than 500 creditors, including Sony Group (SONY) and Walmart. The company’s Chapter 11 case became a Chapter 7 liquidation proceeding in July, shutting down the roughly 24,000 Redbox kiosks in the U.S.

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Key Takeaways

• Moderna shares surged Tuesday after Canadian regulators approved the biotech firm’s updated COVID-19 vaccine.
• Moderna’s Spikevax KP.2 targets the KP.2 variant of the virus.
• The U.S. Food and Drug Administration has also approved the shot, as well as updated vaccines from Pfizer and BioNTech.

Moderna (MRNA) shares surged Tuesday after Canadian regulators approved the biotech firm’s updated COVID-19 vaccine.

The company reported Health Canada authorized the use of its Spikevax KP.2 shot for those aged six months and older. Last month, the U.S. Food and Drug Administration also gave approval for the vaccine, as well as updated shots from Pfizer (PFE) and BioNTech (BNTX).

Moderna’s Spikevax KP.2 targets the KP.2 variant of the virus, which is a descendant of the JN.1 variant that began appearing last winter.

Moderna said now that it has received approval, the company will begin delivering the Spikevax KP.2 to the Public Health Agency of Canada.

Shares of Moderna were up nearly 4% at $71.81 in afternoon trading Tuesday following the news. Despite Tuesday’s gains, they’ve lost more than one-quarter of their value since the start of the year.

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Shares Surged Nearly 8% in Extended Trading on Monday

Key Takeaways

• Intel shares surged nearly 8% in extended trading on Monday, adding to big gains during regular trading, after the embattled chipmaker’s CEO Pat Gelsinger provided an update on the company’s plans to slash costs and turn around its business.
• Although the shares hit a new multi-year low this month, they have made a partial recovery to currently trade near their September high, potentially forming a hammer, a candlestick pattern that suggests a bullish reversal.
• Investors should monitor important support levels on Intel’s monthly chart at $20, $17, and $14, while watching key resistance areas at $25 and $35.

Intel (INTC) shares surged in extended trading on Monday after the embattled chipmaker’s CEO Pat Gelsinger provided an update on the company’s plans to slash costs and turn around its business.

Gelsinger said in a note to employees released after the closing bell that Intel has made progress in lowering costs through layoffs, trimming its real estate footprint, and selling part of its stake in its Altera programmable chip unit, among other steps.  The company also plans to turn its chipmaking arm into a separate subsidiary and said it would produce chips for Amazon (AMZN), as well as the U.S. military.

Intel shares rose 7.9% in after-hours trading to $22.56. The stock had risen more than 6% during regular trading hours following a report from Bloomberg on the contract to produce custom chips for the military. Even with Monday’s gains, the stock has shed more than half its value since the start of the year.

Below, we’ll take a closer look at Intel’s monthly chart and use technical analysis to identify key historical price levels worth watching.

Potential Hammer Candlestick Forming

After encountering significant selling pressure at the closely watched 50-day moving average (MA) in December last year, Intel shares have trended sharply lower, falling as much as 64% since that time. Importantly, trading volumes have increased during the stock’s sell-off, indicating conviction behind the move. 

Although the shares hit a new multi-year low this month, they have made a partial recovery to currently trade near their September high, potentially forming a hammer—a candlestick pattern that suggests a bullish reversal.

Looking ahead, investors should monitor several key price levels on Intel’s chart that will likely gain close attention.

Important Support Levels to Watch

Firstly, it’s worth keeping a close eye on the $20 area, a price level the stock reclaimed on Monday. This location on the chart finds a confluence of support from the psychological round number and a horizontal line that connects a range of historical trading levels in the chipmaker’s stock from 1997 to 2012. Confirmation of a September hammer pattern at this key level would register a significant win for the bulls.

However, a continuation of Intel’s downtrend could see the shares fall to around $17, where they would likely find support from a period of consolidation in the stock between 1997 and 1998, an area that also closely aligns with troughs in 2006 and 2010.

Longer-term weakness may bring the $14 region into play, an area on the chart where buy-and-hold investors would likely seek entry points near prominent swing lows that formed during the dotcom bubble correction of 2002 and great recession in 2009.

Key Overhead Levels to Monitor

If an upside reversal takes place in Intel shares, investors should initially keep an eye on the $25 level, a key overhead area where the stock could run into resistance from a horizontal line linking multiple peaks and troughs between 1997 and February last year.

A move above this area could see the shares climb to $35, where they may encounter selling pressure near a trendline joining a series of price action from 1999 to October 2023 with the closely-aligned 200-day moving average.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• Microsoft on Monday announced a $60 billion stock buyback program and a 10% boost to its quarterly dividend. 
• The moves come as Microsoft faces pressure to show its spending on artificial intelligence (AI) is paying off.
• Microsoft unveiled new AI features at its “Wave 2” event Monday.

Microsoft (MSFT) said Monday its board of directors approved a $60 billion stock buyback program and a 10% boost to its quarterly dividend. 

The tech giant said it would raise its dividend to 83 cents per share from 75 cents, with the dividend payable Dec. 12 to shareholders of record Nov. 21. Microsoft said its annual shareholders meeting will be held on Dec. 10.

The moves by Microsoft come as the tech giant faces pressure to show its spending on artificial intelligence (AI) is paying off for investors. Microsoft told investors in July that it plans to ramp up its spending on AI infrastructure to meet demand, which it said outpaces its capacity. 

Earlier in the day, Microsoft also unveiled several new AI features and upgrades to its Copilot AI assistant at its “Wave 2” event. Some of the updates included general availability of Copilot in Excel, Copilot in OneDrive, and an Outlook feature that summarizes emails.

Jefferies analysts said in a note Monday following the event that they view Microsoft as a “top AI beneficiary,” citing strong early signs of Copilot adoption and improvements to user experience.

Shares of Microsoft edged 0.7% higher in extended trading Monday following the news. They’ve gained close to 15% since the start of the year through Monday’s close. 

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Key Takeaways

• Markets on Monday were pricing in a roughly 60% chance the Fed would begin aggressively cutting interest rates at its policy meeting on Wednesday.
• The odds of a 50-basis-point cut fell as low as 15% last week after core inflation data for August came in hotter than expected.
• Analysts were split on how the Fed would balance rising expectations for a big cut and data that has mostly shown a cooling—but not crashing—economy.

Traders over the weekend raised their bets the Federal Reserve would cut interest rates substantially as market participants looked forward to what’s expected to be the most consequential Fed meeting in years. 

Markets on Monday morning were pricing in a roughly 60% chance the Fed would cut its benchmark federal funds rate by 50 basis points (bps) when it concludes its two-day policy meeting on Wednesday. That was up from 50% on Sunday and as low as 15% last week, when consumer inflation data reminded investors that prices continue to rise faster than the Fed’s target rate of 2% annually.

Investors and Fed watchers have been debating the size of the central bank’s impending rate cut ever since Chair Jerome Powell in August effectively confirmed that it was ready to begin loosening monetary policy after holding rates at a two-decade high for more than a year. 

Signs of a softening labor market have led some, including former New York Fed President Bill Dudley, to advocate for a 50-basis-point cut. A pivot of that magnitude would be somewhat of a rarity outside of economic crisis.

Others have urged caution, highlighting the labor market’s peculiar strength over the last few years and the inflationary risks of pivoting too quickly.

Analysts Weigh in on Size of Rate Cut

Analysts on Monday were split on the likelihood of a big cut. Bank of America analysts wrote in a note that they expected a more traditional 25-bps cut.

“Fed officials did not signal a larger cut prior to the blackout period & since then US inflation data has printed slightly firm,” they wrote. 

Bob Schwarz, Senior Economist at Oxford Economics, concurred. “The case for a traditional quarter-percent pivot is not only likely but justified by emerging conditions,” he wrote, referring to last week’s hotter-than-expected inflation report and signs of the labor market’s resilience.

Deutsche Bank analyst Jim Reid, on the other hand, pointed out in a note that the Fed probably wants to avoid surprising markets with its rate cut on Wednesday. Rising expectations for a 50-point cut, then, could help nudge officials into a more aggressive cut than had been forecast.

Markets Have a Bad Track Record of Anticipating the Fed

While the Fed has avoided surprising Wall Street with its rate decisions over the last few years, market participants have also been less-than-stellar predictors of Fed policy over the long term.

At the beginning of the year, Wall Street was expecting the Fed to cut rates aggressively, starting as early as March. But those bets didn’t pan out when inflation proved stickier than expected.

The estimated date of the Fed’s first rate cut has been steadily pushed back throughout the year as data has consistently come in stronger than forecast. Market forecasts have regularly been more optimistic than the Fed’s quarterly projections, which will be updated after Wednesday’s meeting.

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KEY TAKEAWAYS

• Air Canada reached a tentative deal over the weekend with its pilots union, avoiding a strike that could have shut most of its operations.
• The country’s biggest carrier had struck the four-year deal with the Air Line Pilots Association (ALPA) , which represents more than 5,200 pilots at Air Canada and Air Canada Rouge.
• The deal’s terms will remain confidential pending a ratification vote by union members, expected to be completed over the next month, and Air Canada’s board.

Air Canada reached a tentative deal over the weekend with its pilots union, avoiding a strike that could have shut most of its operations.

The country’s biggest carrier said the terms of the four-year deal with the Air Line Pilots Association (ALPA)—which represents more than 5,200 pilots at Air Canada and Air Canada Rouge—”will remain confidential pending a ratification vote by the membership, expected to be completed over the next month, and approval by the Air Canada Board of Directors.” 

Strike Could Have Started Sunday Without Deal

Last Monday, Air Canada said that either side could issue a 72-hour strike or lockout notice as early as yesterday if a deal couldn’t be reached.

Air Canada said the new deal recognized the “the contributions and professionalism” of its pilots and would provide a framework for the carrier’s growth.

This isn’t the first major Canadian labor dispute in recent weeks to grab headlines. Last month, the Canadian government brought a quick end to lockouts of unionized workers at the country’s two biggest freight railroad operators, which threatened trade with the U.S. and the national economy.

Air Canada shares listed on the Toronto Stock Exchange (TSX) are down 15% this year.

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Shares Gained Nearly 16% Last Week

Key Takeaways

• Nvidia shares will likely remain on watchlists Monday after the AI investor darling surged last week as investors snapped up a recent dip in the stock.
• The stock has rallied towards the top trendline of a descending channel, though the move has occurred on lackluster volume, indicating a lack of institutional activity.
• Investors should monitor key overhead price levels on Nvidia’s chart at $126, $136, and $166, while watching important lower price levels at $97 and $75.

Nvidia (NVDA) shares will likely remain on watchlists Monday after the artificial intelligence (AI)-darling surged last week, as investors snapped up a recent dip in the stock following favorable Wall Street commentary pointing to continuing growth opportunities amid insatiable demand for AI infrastructure.

Last week, the AI chipmaker’s stock gained nearly 16% after dropping around 23% between late August and early September as investors’ optimism towards AI cooled in the wake of the company posting slowing quarterly growth, despite exceeding analysts’ earnings and sales expectations. However, market sentiment received a boost recently after Bernstein analysts called Nvidia “the best way to play AI,” while Bank of America analysts noted earlier this month that the recent pullback provides an “enhanced Buy opportunity.”

Below, we’ll take a close look at Nvidia’s chart and use technical analysis to identify important price levels to watch out for after recent swings in the stock.

Shares Trade Within Descending Channel

Since setting their record high in late June, Nvidia shares have traded within a descending channel, a chart pattern consisting of two parallel downward sloping trendlines that indicates a downtrend in the stock.

More recently, the price has made a move towards the channel’s top trendline, reclaiming the 50-day moving average (MA) in the process.

However, similarly to the August rally, the stock’s latest advance has occurred on lackluster volume, pointing to lack of participation from institutional investors. The stock gained 15.8% last week and closed Friday at $119.10.

Overhead Price Levels to Monitor

The first key area to monitor on the chart sits around $126, where the shares may run into resistance near the descending channel’s top trendline. It’s also worth watching for increasing trading volumes at this level, which may signal a looming breakout above the pattern.

If a breakout does take place, investors should eye the $136 region, a location where sellers may lock in profits near the stock’s June 18 record close, which also closely corresponds with the mid-July swing high.

To forecast a price target above Nvidia’s all-time high (ATH), we can use the measuring principle. To do this, we calculate the distance between the descending channel’s two trendlines and add that amount to the pattern’s upper trendline. For example, we add $40 to $126, which predicts an upside target of $166.

Lower Price Levels to Watch

If Nvidia’s shares move lower from current levels, investors should keep an eye on the $97 region, an area where the shares may encounter support near a horizontal line connecting the March twin peaks with a series of comparable trading levels positioned around last month’s low.

Further selling could lead to a breakdown below the channel’s lower trendline and 200-day MA that may see the stock revisit the $75 area, a location on the chart that would likely attract bargain hunters near the mid-February peak and April trough.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• Markets on Friday saw a nearly 50/50 chance the Federal Reserve would cut interest rates by half a percentage point at its pivotal policy meeting next week.
• Former New York Fed President Bill Dudley said at a conference on Friday that signs of a weakening labor market made a “strong case” for a cut of that size.
• In the last two decades, every 50-basis-point rate cut has either coincided with or immediately preceded an economic crisis (the Global Financial Crisis in 2007 and Covid-19 in 2020).

Market participants raised their bets on Friday that the Federal Reserve will dive headfirst into rate cuts at its policy meeting next week. 

Traders put the odds that the Federal Open Markets Committee will cut its benchmark federal funds rate by 50 basis points next Wednesday at 47%, according to CME’s FedWatch tool, which uses fed futures trading data to forecast interest rate decisions. Markets saw a slightly higher chance (53%) of a smaller 25-basis-point cut. 

The chances of a cut of 50 basis points, or half a percentage point, were up significantly from earlier in the week when inflation data surprised to the upside, providing markets with a fresh reminder that prices are still rising faster than the Fed would like. That data seemed to confirm for Wall Street that, despite the risks of a cooling labor market, officials would approach rate cuts cautiously to avoid undoing the progress they’ve made in taming decades-high inflation. 

Stocks traded higher and bond yields dipped on Friday even as shifting rate expectations indicated markets are increasingly uncertainty about what the Fed will do at what is expected to be the most consequential policy meeting in more than a year.

Former NY Fed Head Sees ‘Strong Case’ For Big Cut

The odds calculated by CME can swing wildly, often changing throughout the day as economic data and other variables are factored into traders’ models.

Friday’s rise in expectations for a jumbo cut could stem from comments from former New York Fed President Bill Dudley, who said at a forum in Singapore on Friday that he saw “a strong case” for a 50-basis-point cut. 

Dudley argued that the rising risks to the labor market outweighed any lingering upside inflation risks. The pace of job gains has slowed dramatically in recent months—89,000 in July and 142,000 in August, compared with a monthly average of more than 200,000 in the first half of the year—raising concerns that the labor market has weakened more than expected and could rapidly deteriorate further. 

Economists have pointed out that job gains like those seen in August are hardly consistent with a recession, during which the economy usually loses jobs. Some experts have also noted that the slowdown has not coincided with a surge in layoffs, suggesting a growing labor force, not profound economic weakness, lies behind an ominous jump in the unemployment rate.

Still, economic data clearly illustrates the job market is cooling off, leading some to wonder whether the Fed has waited too long to start easing policy. 

Does Wall Street Want a Big Cut?

The Fed has, over the last few years, tended to act as the market expected. During the 2022-2023 tightening cycle, even though market expectations sometimes shifted in the week before the rate decision, the Fed’s move was always what markets thought was the most likely outcome.

With markets almost evenly split on whether it’ll be a 25-basis-point or 50-basis-point cut next week, the door is wide open for that pattern to be broken, giving Wall Street substantial leeway in interpreting the Fed’s action.

Over the last 20 years, most 50-basis-point cuts have come amid or immediately before a full-blown economic crisis. A big cut at next week’s meeting could signal panic on the part of policymakers and send markets reeling.

However, Wall Street, like Dudley, clearly sees a case for a large cut next week, in part because interest rates are so high—at least by 21st-century standards.

Dudley on Friday argued that the federal funds rate is currently as much as 200 basis points above the neutral rate, at which policy is neither accommodative nor restrictive. “So the question is,” he said, “‘Why don’t you just get started?'”

Wall Street could agree and see a big rate cut next week as simply the appropriate first step in the normalization of interest rates after an incredibly abnormal few years.

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Key Takeaways

• Avian influenza, commonly called bird flu, has disrupted the nation’s egg distribution for the second time in two years.
• Wholesale egg prices have more than doubled in the past four months, and retail prices have followed.
• Prices could quickly tumble, though, as recent inspections suggest commercial egg producers may have made progress in containing the recent outbreak.

Avian influenza, or bird flu, is wreaking havoc on the nation’s chicken flocks—and egg prices for U.S. consumers.

Egg prices have surged since late spring, rising amid a surge in avian influenza in the nation’s commercial poultry flocks. (There was a similar outbreak in late 2022.) The U.S. Department of Agriculture (USDA) in July estimated that avian flu had sickened over 3 million birds, or roughly about 1% of the nation’s supply of egg-laying chickens.

Eggflation Is Back

The average wholesale price of a dozen large Grade A eggs has more than doubled in the past four months, climbing to $4.44 last week from $2.11 in early May. In just the past month, wholesale prices have risen 40%. Retail prices have followed, with the same size and grade averaging $3.20 per dozen in August, according to the Bureau of Labor Statistics.

One supermarket chain in the Midwest, which typically has lower retail egg prices than others because of its proximity to many large producers, sold a dozen large Grade A eggs for $3.99 Friday morning—25% more than August’s national average retail price.

What’s Next For Egg Prices

The wholesale price surge suggests retail prices will likely rise further when the Bureau of Labor Statistics reports September price data next month.

Consumers endured a similar avian-induced market surge in late 2022 and early 2023, when average retail prices reached an all-time high of $4.82 per dozen. However, they fell about as quickly as they rose, plunging to more normal levels near $2 per dozen by mid-2023.

Producers whose flocks contract avian flu must quickly quarantine and euthanize them. They then must pass USDA testing and inspection to ensure no traces of the disease remain at their facilities. The USDA found no U.S. commercial flocks with bird flu in August, which may indicate progress on controlling the spread of avian flu. If that is the case, prices may return to normal relatively quickly.

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