“Even a tarnished giant like Boeing can soar when the federal government finally loosens the leash.” – 02:02
Evelio Silvera, Co-Founder of Bull Street Media, joins Remy Blaire to discuss the latest developments in the stock market, focusing on two major companies: Boeing and Costco.
The segment begins with an analysis of Boeing’s recent performance, as shares have surged approximately 25% year-to-date, despite a slight pullback in the latest session
Evelio provides insights into the implications of the FAA’s decision to soften restrictions on the production of the 737 MAX and 787 Dreamliner. Evelio expresses optimism that this regulatory easing could signal the end of Boeing’s prolonged challenges, potentially unlocking a wave of deliveries and orders that would further elevate the stock. He highlights recent orders from Norwegian and Uzbekistan Airlines as evidence that even a company with a troubled past can rebound when government constraints are lifted. Evelio also compares Boeing’s position to that of Airbus, suggesting that Boeing may be undervalued relative to its competitors.
The conversation then shifts to Costco, which has reported strong earnings despite a 2% dip in its stock price. Remy and Evelio discuss how Costco is successfully attracting younger members and providing value in a challenging economic climate. Evelio breaks down Costco’s impressive fiscal results, including a revenue of $86.2 billion and an 11% increase in net income. He argues that the company’s loyal customer base and robust membership growth will likely lead to a rebound in share prices, despite the recent dip. The discussion emphasizes the importance of consumer sentiment and spending patterns, particularly as they approach the upcoming Q1 sales report.
As the segment progresses, Remy and Evelio address the looming potential of a U.S. government shutdown. Evelio shares his insights on market reactions, noting that while the odds of a shutdown are increasing, historical trends indicate that such events typically result in minor market fluctuations rather than significant downturns. He underscores the importance of consumer sentiment and its potential impact on retail spending, while also observing that the market appears to be taking a nonchalant approach to the situation.