Beat the street: Fed focus; Intel-Biden; Boeing to burn more cash

JJ Kinahan, Regional CEO of IG North America, joins Angeline Ong with his views on how Fed chair Jerome Powell’s remarks could change the Fed’s ‘dot-plot’. Intel nabs close to $20 billion in awards from the Biden administration to increase US chip output. Plus, find out why Boeing is set to burn more cash in Q1.

(AI Video Summary)

Fed monetary policy

In today's edition of "Beat the street", Angeline Ong gives an easy-to-understand summary of what's happening in the stock market right now.

For starters, the Federal Reserve's monetary policy is a big deal for investors in the United States. People are curious about whether interest rates will go up or down, and how that might affect things like inflation. The video mentions that recent economic data has been a bit confusing, especially when it comes to things like inflation and crude oil prices.

Intel nabs $20 billion to increase chip output

Switching gears, Intel just got a whopping $20 billion from the Biden administration. They're using this money to boost the production of computer chips in the United States. This is a strategic move to reduce their reliance on chip suppliers from Asia, specifically China. It's expected that other big companies like Samsung and Taiwan's TSMC will also receive similar awards in the near future.

Boeing troubles

On a less positive note, Boeing is experiencing some cash difficulties. They're expected to burn through even more money in the first quarter due to limiting production of their 737 planes. This situation has hurt their credibility and might lead to them losing market share, as some airlines consider switching their orders to Airbus.

Greneral Mills' strong sales quarter

General Mills, the company behind popular food brands, had a stronger than expected sales quarter. They were able to achieve this due to a few things like raising prices, cutting costs, and seeing steady demand for their higher-priced food products. They credit their success to focusing on building their brand and creating innovative products.

Micron to release Q2 earnings

Lastly, Micron is about to release their second-quarter earnings report. While they're expected to report a loss per share, they've seen growth in revenue from dynamic random access memory. They're also excited about the increasing demand for artificial intelligence applications.

Overall, the market is in a bit of a holding pattern as investors wait for news from the Federal Reserve. This caution is understandable, given the uncertainty around economic factors and trends. Traders are being cautious and not making any major moves until they have more information.