😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

Stocks to Watch Today: Boeing, Occidental Petroleum, NextEra Energy

Published 06/19/2024, 02:19 AM

On Tuesday morning, NextEra Energy (NYSE:NEE) and Boeing (NYSE:BA) shares declined while Occidental Petroleum (NYSE:OXY) gained, amid significant news developments for each company.

The U.S. stock market saw mixed performance on Tuesday morning, with NextEra Energy and Boeing shares declining while Occidental Petroleum experienced gains.

The divergent moves come amid significant news developments for each company, including a Senate hearing on Boeing’s safety practices, Warren Buffett’s increased stake in Occidental Petroleum, and NextEra Energy’s plans to sell equity units to fund renewable energy projects.

Boeing Faces Scrutiny Over Safety and Whistleblower Claims

Boeing CEO Dave Calhoun is set to face tough questions from U.S. senators regarding the company’s safety culture and new whistleblower allegations.

The Senate hearing follows a January mid-air emergency involving an Alaska Airlines 737 MAX 9, which raised widespread concerns about the plane’s safety. Senator Richard Blumenthal revealed that a current Boeing quality assurance investigator, Sam Mohawk, recently informed the panel of systemic disregard for documentation and accountability of nonconforming parts.

Mohawk claimed that nonconformance reports soared 300% compared to the period before the 737 MAX grounding and that the program intentionally hid faulty parts from the FAA during an inspection. While Calhoun is expected to acknowledge shortcomings, he will also emphasize Boeing’s efforts to improve.

The company has been under increased scrutiny from regulators and airlines since the January incident, with the FAA recently giving Boeing 90 days to develop a comprehensive quality improvement plan.

Buffett Bets Big on Occidental Petroleum

Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) has significantly increased its stake in Occidental Petroleum, acquiring nearly 3 million additional shares over three trading days.

The purchases, made at an average price of $59 per share, bring Berkshire’s total holdings to 255,281,524 common shares, representing almost 29% of the company. The stake, worth approximately $15.37 billion as of Monday, underscores Buffett’s confidence in Occidental Petroleum and the U.S. shale industry.

Despite sparking takeover speculation, Buffett has denied any intentions to acquire control of the company, stating that they like OXY’s position in the Permian Basin but wouldn’t know what to do with a controlling interest. Occidental Petroleum, meanwhile, is working to close its $12 billion acquisition of Permian producer CrownRock by August 2024.

NextEra Energy to Raise Funds for Renewable Projects

NextEra Energy announced plans to sell $2 billion of equity units to Wells Fargo Securities and BofA Securities to raise capital for its renewable energy projects.

The news sent NextEra shares down 3.4% in morning trading. The net proceeds from the sale will be used to fund investments in the company’s energy and power projects, with plans to invest $12 billion in solar and $1.5 billion in battery storage from 2024 to 2027.

Each $50 equity unit will have a contract to purchase NextEra Energy common stock in three years and a 5% ownership interest in a NextEra Energy Capital Holdings debenture due June 1, 2029. NextEra Energy’s focus on renewable energy comes as the sector grows and attracts investor interest.


Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.