Musk pay package, cruise line pressures: Market Domination
On today's episode of Market Domination, Yahoo Finance's Julie Hyman and Josh Lipton break down the trading week's biggest stories from Tesla (TSLA) CEO Elon Musk's pay package to tumbling cruise line stocks. The major indexes (^DJI, ^IXIC, ^GSPC) are mixed after June's consumer sentiment data hit its lowest level since November. CFRA Research chief investment strategist Sam Stovall is concerned that markets may have "to endure another decline" before the following year sees substantial market gains. Tesla shareholders approved CEO Elon Musk's controversial $56 billion compensation package at Thursday's shareholder meeting. Financial analyst and YouTuber "Meet Kevin" Kevin Paffrath was in favor of Musk's pay package, explaining, "the deal was made in 2018 and it was very public... Frankly, if that same deal was made today at those prices then, everybody would look at that as a shareholder and go — well, at least 70% like we had then — 'Of course, we're going to support if you can move the market capitalization of this stock essentially exponentially. Of course, we're going to support paying for you.' So receiving that and then being frustrated about Elon in the short term, I don't think is fair. I think it hits on an element of justice." As the summer travel season heats up, top cruise line stocks (CCL, RCL, NCLH, VIK) dipped in Friday's session after Bank of America analysts found cruise prices to be "modestly softer" in June. On the airline side, issues with Boeing (BA) are preventing companies from accessing new planes, stunting growth amid high demand. Peter McNally, Third Bridge Global's Head of Industrials, Materials, and Energy Sector, explains, "companies like United (UAL) who've got very ambitious targets out to 2026 that they've had to temper that a bit... It doesn't seem like Boeing's problems are going to be sorted anytime soon, and it's not like Airbus (AIR.PA) can go any faster than they already are." Shares of Shopify (SHOP) rose after Evercore ISI's Mark Mahaney upgraded the e-commerce company to Outperform from In Line, citing an attractive entry point for investors following a slight decline in the share price. Tempus AI (TEM) shares also popped after making its trading debut on the Nasdaq via an IPO. This post was written by Melanie Riehl
