Stocks Open Lower, Boeing Rises as CEO Set to Leave Company

A violent rally on Wall Street to start 2024 took a breather as the final week of the year's first quarter began.

The S&P 500 (^GSPC) fell 0.3%, while the Dow Jones Industrial Average (^DJI) fell a modest 0.2%. The tech-heavy Nasdaq Composite (^IXIC) fell 0.6% after the index set another record on Friday.

The S&P and Nasdaq have opened 2024 on a higher note, as both indexes rose nearly 10% to start the year. But traders are largely waiting for the start of a short final week in March as financial markets are closed for Good Friday.

The highlight of the week on the economic data front will come on Friday with the release of the Personal Consumption Expenditures (PCE) Price Index, which includes the Federal Reserve's preferred “core” PCE inflation measure.

Read more: What the Fed's rate decision means for your money

The Fed helped fuel the market's upward trend last week as the central bank reiterated its expectations that it will cut interest rates three times this year while offering more optimistic forecasts for the economy.

In corporate news, shares of Advanced Micro Devices (AMD) and Intel (INTC) both fell over 3% after a Financial Times report said China would stop using their chips and servers in government computers.

Boeing (BA) shares rose 3% after the aircraft maker said its CEO Dave Calhoun will step down at the end of the year.

The industrial giant has been struggling with a series of production and quality control problems since one of its 737 MAX 9 planes flown by Alaska Air lost a panel mid-flight in early January.

live4 updates

• Monday, March 25, 2024, 8:33 a.m. CDT
  

  Shares open lower at start of shortened trading week, Boeing shares rise following CEO departure

  Stocks opened lower on Monday to begin the final week of the month and quarter. The S&P 500 (^GSPC) fell 0.3%, while the Nasdaq Composite (^IXIC) fell 0.6%, driven by a decline in technology stocks.

  The Dow Jones Industrial Average (^DJI) slipped 0.2%, weighed down by shares of Microsoft (MSFT) and Apple (AAPL).

  Boeing (BA) shares rose more than 3% after the aircraft maker said CEO Dave Calhoun will step down at the end of the year. The industrial giant is in the midst of a safety crisis that began in early January after a panel on a 737 MAX 9 plane was blown off during an Alaska Air flight.

• Monday, March 25, 2024, 7:15 a.m. CDT
  

  An investment bank throws a dart at Foot Locker

  Foot Locker (FL) has had a brutal 12 months.

  Weak sales. Weak margins. Rough prospects. The reasons for this are varied, ranging from changing sneaker preferences (think higher demand for chunky dad shoes as opposed to athletic sneakers) to Nike's (NKE) execution issues to Foot's operational challenges Relaxed.

  All told, the stock is down 36% over the past year – and that's deserved (just take a look at the company's most recent earnings presentation for support).

  Nevertheless, EvercoreISI's Michael Binetti throws a dart at the stock's recovery. He upgraded his rating to Outperform this morning, citing the following:

  • A new loyalty program will be introduced in the middle of the year.

  • A new digital app in North America by mid-year.

  • An aggressive store renewal plan – two-thirds of Foot Locker stores are scheduled to be modernized by 2025.

  • A significant acceleration of innovation/novelty across all sports brands.

  • Nike returns to growth ahead of the Olympics.

  Appreciate the analysis, but FL remains a show-me story.

• Monday, March 25, 2024, 7:00 a.m. CDT
  

  Behind the scenes at Chipotle

  I still remember meeting Brian Niccol in 2016.

  At the time, he was CEO of Yum! Taco Bell was owned by Brands (YUM). I was in my early 30s and still trying to find a reporting role and also looking for ways to save money (partly because I wasn't making much from that role!) – which included dinner at Taco Bell.

  I met Brian in a hotel conference room after he gave a talk at an investor day. Even though Brian is a young man with a lot of accomplishments on his resume, I found him to be humble and incredibly knowledgeable about the fast food industry. I concluded that Brian would play a critical role as CEO of a standalone company.

  Eight years later, Brian is still the same guy I met, despite having even more success on his resume as CEO of Chipotle (CMG). Here's my new exclusive chat with Brian now on Yahoo Finance. We covered a lot in our 25-minute call, but my main takeaway is that Chipotle shareholders continue to do well because someone like Brian is at the helm, supported by the equally impressive CFO Jack Hartung.

  A few insights from the interview:

  • Chipotle is making a point of pushing the envelope when it comes to opening new restaurants over the next three years.

  • New technologies are being rolled out to more Chipotle locations to improve profit margins.

  • Brian Niccol isn't going anywhere anytime soon.

• Monday, March 25, 2024, 6:30 a.m. CDT
  

  Where investors see the bubbles

  As we enter the final week of trading, which is a relatively hot March for various asset classes, investors remain wary of the bubble.

  A new survey from Deutsche Bank released this morning shows that investors may still be concerned about how quickly Bitcoin and tech stocks have risen.

  This makes sense since tech stocks like Nvidia (NVDA) are up 19% this month on the AI ​​hype and Bitcoin is up 9%!

  Bitcoin and tech stocks appear to be overpriced, according to a new survey from Deutsche Bank. (Deutsche Bank)