Good Evening. On Tuesday, U.S. equities climbed on the back of new inflation data indicating that prices grew less than anticipated last month.
The S&P 500 increased by 0.73%. The Dow Jones gained by 0.30%, while the Nasdaq Composite saw the biggest gain of 1.01%.
LARGEST WIDEBODY ORDER IN HISTORY
United Airlines (UAL) has placed an order for 100 of Boeing’s top-of-the-line 787 Dreamliners, with the option to acquire a further 100. United called the purchase as “the largest widebody order by a U.S. carrier in commercial aviation history” in a news statement, and it intends to take delivery between 2024 and 2032.
What does this imply for both businesses?
- The flood of new planes will help United to increase earnings over time by lowering operational expenses and providing more premium-priced seats.
- Boeing, the world’s biggest aircraft firm, would benefit from any win. After facing production challenges relating to the 737 Max, the business is still attempting a turnaround under CEO Dave Calhoun. On top of that, after months of lobbying by Boeing, senators refused to include an extension for Boeing in the annual military budget bill, which would have installed additional safety systems on the 737 Max-7 and 737 Max-10.
Going forward… The purchase reflects increased confidence in Boeing’s Dreamliner program, which started delivery in August after being suspended for more than a year due to supplier fault issues.
NUCLEAR BREAKTHROUGH
The Department of Energy is anticipated to declare today that scientists at California’s Lawrence Livermore National Laboratory successfully achieved a nuclear fusion reaction with a net energy gain (meaning it produced more energy than it used).
Scientists and governments have been working for decades to make this happen because nuclear fusion, as opposed to nuclear fission, has the potential to generate enough energy to power the whole planet while creating no carbon and very little radioactive waste.
This is long-awaited progress in what has long been regarded as a moonshot technology. However, it will take a long time before nuclear fusion becomes an economically feasible energy source. Nuclear fusion, in particular, will not assist the world in meeting its 2030 net-zero objectives. It might become relevant by 2050.