Summary

Boeing expects negative cash flow in 2024 due to manufacturing issues. T-Mobile to purchase U.S Cellular's assets for $4.4 billion, gaining over 4 million customers. U.S house price growth slowed in March due to rising mortgage rates. Wall Street hits records amid expectations of U.S central bank interest-rate cuts. Nasdaq hits 17,000 for the first time, boosted by Nvidia. Stocks lose ground as U.S Treasury yields climb. GameStop rises 25%, DraftKing falls over 10%, Apple remains steady. Insmed stocks surge 119% on positive Phase 3 study results.

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Happy Wednesday and welcome back to C2 Business! Current2 is your go-to for all news business, powered by Just Bagels.

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General business news:

• Leading airline manufacturer Boeing expects to have negative free cash flow in 2024 as manufacturing difficulties continue, according to the company's CFO. In addition, the company predicts that the deliveries of new planes won’t improve in the second quarter of the year, as production challenges persist. This latest surge of production issues for Boeing began earlier this year when a viral incident of a door plug blowing out of a brand-new 737 Max 9 mid-flight caused reputational damage and increased federal scrutiny of the airplane manufacturer. This incident only adds to the uncertainty as the company tries to improve its public perception following two fatal Max crashes in 2018 and 2019.
• T-Mobile is set to purchase U.S Cellular’s wireless operations and select spectrum assets in a deal worth $4.4 billion. Through this deal, T-Mobile is expected to gain more that 4 million new customers, further consoli by dating the industry. T-Mobile leadership has argued that the deal will make internet and cellular services more accessible to those living in more rural areas of the country. Following the announcement of the deal, U.S Cellular’s stock rose more than 2% in morning trading on Tuesday.
• According to data released by the Federal Housing Finance Agency Tuesday, U.S real estate price growth slowed in March as rising mortgage rates weigh on demand. Although house prices have  increased 6.7% since this time last year, they have still slowed their growth compared to recent months. Housing prices only increased 0.1% in March, a dramatic decrease from the 1.2% increase the market saw throughout February. The inventory of houses on the market still remains well below pre-pandemic levels, so house prices are expected to remain elevated for some time. 

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Stock market news:

• Wall Street has been hitting records lately as investors expect the U.S central bank could start interest–rate cuts this year.
• The Nasdaq broke records Tuesday — hitting 17,000 for the first time ever, helped by gains in Nvidia. Nvidia shares also boosted shares of other chip stocks as traders returned from their Memorial Day weekend.
• Stocks lost ground Tuesday afternoon as U.S Treasury yields climbed following weak debt auctions. 
• GameStop stocks jumped 25% Tuesday, while DraftKing stocks fell by over 10% and Apple stocks remained relatively steady.
• Insmed stocks lept 119% after the company announced positive results from a Phase 3 study for their treatment for non-cystic fibrosis bronchiectasis.

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Thanks for tuning into this episode of C2 Business, and we will see you again on Friday!

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Bulletin Brief

Boeing expects a 2024 cash burn and slow recovery of airplane deliveries amid crisis (CNBC)

T-Mobile plans to buy almost all of U.S Cellular in $4.4 billion deal (AP)

U.S house price inflation slows in March (Reuters)

Nasdaq closes above 17,000; S&P closes up, Dow down (Reuters)

What stocks moved the most today? (Barron’s)