Oil surges as tensions rise in the Middle East

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Dow hits record, tech stocks lag
THE Dow Jones Industrial Average closed in a high record as investors moved away from technology stocks. The 30-share index rose 0.16%, while the S&P 500 and the Nasdaq Composite decreased by 0.32% and 0.85%, respectively. Nvidia fell 2.25% ahead of its earnings report on Wednesday. Other chip stocks Broadcom and Micron fell 4% and 3.8%, respectively. Meanwhile, the yield on the 10-year Fund rose slightly higher after Federal Reserve Chairman Jerome Powell signaled plans to cut interest rates.

Apple’s new CFO
Apple announced that the Chief Financial Officer Luca Maestri will resign on January 1, he will be succeeded by longtime Apple member Kevan Parekh. Maestri, who has been CFO since 2014, will continue to lead the IT, security and real estate development teams. Parekh, currently VP of financial planning and analysis, has been a key member of Apple’s financial leadership. Under Maestri, Apple’s revenue more than doubled and the company’s stock rose more than 800%. Separately, the company plans to is hosting a press conference on September 9 at its headquarters, where it is expected to present new iPhone and Apple Watch models.

Oil is soaring
US crude oil prices increased 3.5% due to production halts in Libya and escalation of tensions between Israel and Hezbollah. Libya’s eastern government has shut down oil production and exports amid a political dispute over who should run the central bank, potentially affecting global markets. At the same time, Israel and Hezbollah exchanged heavy fire. Ongoing tensions in the Middle East, including recent killings of militant leaders, have kept the region on edge.

Bronfman drops the offer
Edgar Bronfman Jr. has withdrew his offer for Paramount Globalleaving Skydance Media as the likely candidate to acquire Shari Redstone’s media empire. Bronfman’s team informed Paramount’s special committee of its decision, citing unease among high-net-worth investors about sharing personal financial information, according to Reuters. The Bronfman-led group had previously proposed a $6 billion bid to take control of Paramount through its controlling shareholder, National Amusements.

Asian stocks slide
Asia-Pacific markets fell sharply on Tuesday, tracking losses in the S&P 500 and Nasdaq overnight. Hong Kong Hang Seng Index fell 0.27% and mainland China’s CSI 300 lost 0.61% even Industrial profits rose 3.6% year after year. of Japan Nikkei 225 rose 0.21% in volatile trade, while South Korea’s Kospi fell 0.37%. of Australia S&P/ASX 200 it came close to an all-time high before retreating 0.17%.

[PRO] Nvidia compensation
Bank of America warns that “investors may be underestimating the risk of disappointment” from Nvidia’s earnings, which could lead to a broader sell-off in the market. This is what the investment bank suggests hedging.

BoeingIts space ambitions may be on the brink as speculation mounts that the aerospace giant could sell off its ailing space business. This comes after the problems with the Starliner spaceship, which left two astronauts stranded to the International Space Station.

According to Reuters, Boeing and Lockheed Martin it’s already inside talks to sell their missile launch joint ventureUnited Launch Alliance, to Sierra Space for about $2 billion to $3 billion. The potential sale comes at a time when Boeing’s dominance in space exploration is increasingly challenged by younger, more nimble competitors.

Once the backbone of NASA’s Apollo missions, Boeing now finds itself overshadowed by Elon Musk’s SpaceX, which has quickly become the partner for manned space missions. Boeing is not alone in facing these challenges. Like Intelwhich has lagged behind in the AI ​​and smartphone markets to rivals such as Nvidia, Broadcom and AMDBoeing is grappling with the reality of being overtaken in an industry it once led.

“This incident could negatively affect Boeing’s reputation with NASA, and it is unclear if or when the company will have another opportunity to put astronauts in space,” Bank of America analyst Ronald Epstein said in a note. “We wouldn’t be surprised if Boeing did divest the manned spaceflight business.”

Epstein’s criticism did not stop there. He pointed to gaps in Boeing’s technical workforce, suggesting the company may have drifted away from its engineering roots — a possible factor in its recent failures.

These challenges are yet another issue for which Boeing’s new CEO, Robert Ortberg who is charged with guiding the company on many safety issues on its commercial airplanes.

Boeing shares fell 0.85% to $173, although Epstein maintains a 12-month price target of $200, representing a 15% rise from Monday’s close.

As for the broader market, the Dow closed at a record high. And although there’s been a shift in tech stocks, the weight of the sector has held the S&P 500 down.

While acknowledging the volatility that has hit tech stocks recently, UBS argues that AI’s long-term growth potential will support the broader market.

“We see room for further upside in US equities in a constructive environment driven by the Fed’s rate cuts, the AI ​​growth story and healthy earnings growth,” UBS wrote in a note on Monday, affirming the target for the year-end for the S&P 500 at 5,900, representing a 5% increase from today’s levels.

— CNBC’s Pia Singh, Lisa Kailai Han, Spencer Kimball, Brian Evans, Kif Leswing and Lim Hui Jie contributed to this report.