Key Takeaways
- Delta Airlines (DAL) is under FAA investigation after a Boeing 767 experienced a mid-air engine fire shortly after takeoff from LAX on July 18, leading to an emergency landing with all 226 passengers and 9 crew safely disembarking; the airline's stock subsequently turned red.
- Tesla (TSLA) faces a significant legal battle with the California Department of Motor Vehicles (DMV), which alleges the company made "untrue or misleading" statements in 2021 and 2022 regarding its Autopilot and Full Self-Driving capabilities.
- High-profile insider sales occurred at Reddit (RDDT) and Unity Software (U), with Reddit's Jennifer L. Wong selling $4.7 million in Class A shares and Unity director Tomer Bar-Zeev selling 100,000 shares.
- The Bank of Canada's (BOC) Q2 surveys reveal a slight decrease in Canadian recession expectations, with 64.5% of consumers and 28% of firms anticipating one next year, though future sales expectations for firms have dropped significantly.
- Geopolitical tensions remain high as the UK government added 137 new specifications and 2 new designations to its Russia sanctions list, while Russia tightened rules for foreign ships entering its ports, requiring FSB security service approval.
Aviation giant Delta Airlines (DAL) is under scrutiny following a serious in-flight incident. A Boeing 767-400ER operating as Flight 446 from Los Angeles (LAX) to Atlanta (ATL) on July 18 experienced a left engine fire shortly after takeoff, forcing an emergency return to LAX. All 226 passengers and 9 crew members landed safely, but the FAA has launched an investigation into the incident. The airline's stock subsequently turned red following the news.
In the tech sector, Tesla (TSLA) is embroiled in a significant legal battle with the California Department of Motor Vehicles (DMV). The DMV alleges that Tesla made "untrue or misleading" statements in 2021 and 2022 concerning its Autopilot and Full Self-Driving (FSD) features. This legal challenge comes amidst ongoing regulatory scrutiny regarding the capabilities and marketing of Tesla's advanced driver-assistance systems.
Several notable insider trading activities have also been reported. Reddit (RDDT) Chief Operating Officer Jennifer L. Wong sold $4.7 million in Class A shares across various price points between $139.15 and $145.90, with the stock currently trading around $148.24. Concurrently, Unity Software (U) Director Tomer Bar-Zeev sold 100,000 shares of the company's stock, valued at approximately $3.53 million.
Economic sentiment in Canada shows mixed signals, according to the Bank of Canada's (BOC) Q2 surveys. The consumer survey indicates that 64.5% of Canadians now expect a recession next year, a slight decrease from 66.5% in Q1. Similarly, the business survey shows that 28% of firms anticipate a recession within a year, down from 32% in Q1. However, future sales expectations for firms have dropped significantly, from +22 to -6, and 5-year inflation expectations among consumers increased to 3.45% from 3.39% in Q1.
Geopolitical developments continue to unfold with new sanctions and tightened controls. The UK government has added 137 new specifications and 2 new designations to its Russia sanctions list, targeting individuals and entities involved in destabilizing Ukraine. In a related move, Russian President Vladimir Putin has signed a decree requiring FSB security service approval for all foreign ships entering Russian ports, a significant tightening of maritime access rules that takes immediate effect.
In other international news, Russian and Iranian Defence Ministers met in Moscow to discuss boosting cooperation, according to the Iranian Ambassador. Meanwhile, Russia and Ukraine could hold a new round of peace talks in Turkey on July 24-25, as reported by TASS.
Finally, PolyMarket has announced its acquisition of derivatives exchange QCEX to resume operations in the United States, following the Department of Justice's closure of its investigation into the prediction market platform. Morgan Stanley has also raised its price target for Meta Platforms (META) to $750 from $650, maintaining an Overweight rating, citing a more favorable economic environment and reduced tariffs on China.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.