the Dow Jones Industrial Average (DJINDICES: ^ DJI) it held a small profit in the early afternoon of Tuesday, 0.25% at 12:30 pm EDT. This gain is despite a worsening pandemic. The number of daily confirmed cases of COVID-19 continues to be high in the United States, and more than a dozen states have paused or reversed their reopening plans.
Boeing (NYSE: BA) Shares reversed course on Tuesday after two major orders were canceled. In the meantime, Apple (NASDAQ: AAPL) Shares rose even as iPhone shipping estimates recovered, and shares of major financial companies rose after quarterly dividends were sustained.
Boeing loses orders
Monday’s demonstration by Boeing over the news that the FAA had approved certification flights for the 737 MAX on the ground was partially reversed on Tuesday after two major order cancellations.
On Monday night, Reuters reported that Norwegian Air had canceled orders for 97 Boeing aircraft. These include 92 737 MAX aircraft and 5,787 Dreamliners. Norwegian will also claim compensation from Boeing for the grounding of the 737 MAX and engine problems for the 787.
On Tuesday, Reuters reported that BOC Aviation, a Hong Kong-based aircraft leasing company, has canceled an order for 30 737 MAX aircraft. BOC also plans to delay delivery of 737 MAX aircraft that have not been canceled.
Boeing shares fell 5.5% early Tuesday afternoon.
Apple 5G estimates slashed
DigiTimes reported Tuesday that its sources expect shipments of certain 5G iPhones to be well below previous estimates for 2020.
There are multiple 5G standards, and Apple is expected to launch some phones this year with the mmWave 5G standard, which can provide dramatically faster speeds compared to 4G. DigiTimes sources are now putting the shipping estimate for these mmWave iPhones at 15 million to 20 million by 2020, down from a previous estimate of 30 million to 40 million.
The tech giant will face the difficult task later this year of convincing iPhone users to upgrade to expensive new technology in the toughest economy since the financial crisis. Apple’s shares had managed to gain 0.9% early Tuesday afternoon.
Finance maintains dividends
The Dow’s main financial components hold their dividends stable after the Federal Reserve capped dividend payments and share buybacks after recent stress tests.
JPMorgan Chase announced Monday that it intends to maintain its current quarterly dividend of $ 0.90 per share, but the company warned that the dividend could be reduced if its outlook deteriorated significantly.
American express will maintain its quarterly dividend at $ 0.43 per share for the third quarter. Goldman Sachs It will also keep its quarterly dividend of $ 1.25 per share the same.
With the highly uncertain economic outlook and pandemic far from under control in some U.S. states, dividend cuts from major financial companies may be necessary in the future. Early Tuesday afternoon, JPMorgan Chase shares rose 1.3%, American Express shares rose 0.5% and Goldman Sachs shares rose 1.9%.