Wall Street Breakfast Podcast: Trump Wins Election

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Donald Trump tops 270 electoral votes to win 2024 presidential election. Recreational marijuana initiatives fail in Florida, North Dakota. (00:28) Spirit AeroSystems (SPR) warns of ability to continue as going concern amid cash crunch. (02:14) iRobot (IRBT) to cut another 16% of workforce as part of operational restructuring. (03:01)

This is an abridged transcript of the podcast.

The voters have spoken. Donald Trump has been elected as the 47th President of the United States.

For more Election 2024 coverage, check out the Wall Street Breakfast newsletter, our daily one-page news summary.

Ballot initiatives in Florida and North Dakota that would have allowed the recreational use of cannabis by adults have failed.

The measure in South Dakota has not been called. At last check with 80% of the vote in, 57% were opposed while 43% were in favor.

In Florida, to win, the initiative needed at least 60% of votes in favor. With 99% of precincts reporting, just shy 56% of voters backed legalization.

The initiative’s rejection is considered a victory for Gov. Ron DeSantis (Rep.), who had campaigned against it. Former President Donald Trump has said he favored the measure.

Medical marijuana is still legal in the state.

In North Dakota, with 99% of precincts in, 47% of votes favored legalization, while 53% were opposed.

A medical marijuana initiative was on the ballot in Nebraska. It passed with 70% of voters in favor of legalization.

Trulieve Cannabis (OTCQX:TCNNF), which is based in Florida’s capital, Tallahassee, had contributed the most to the legalization campaign in the state. Curaleaf Holdings (OTCPK:CURLF) was another significant contributor.

Seeking Alpha has the perfect way for you to stay informed about the world of cannabis. It’s the Cannabis Investing podcast. The most recent episode explores the topic of cannabis as a long-term investment.

Spirit AeroSystems (NYSE:SPR), Boeing’s (BA) key supplier and acquisition target, has raised substantial doubt about its ability to continue as a going concern amid mounting losses, rapid cash burn and production challenges.

Its debt balance as of September 26 was $4.40B, including $426.2M short-term debt. Cash and cash equivalents were $217.6M and $823.5M as of September 26, and December 31, 2023, respectively.

“The company will require additional liquidity to continue its operations over the next 12 months,” it disclosed in its 10-Q filing, adding that it expects to continue generating operating losses for the “foreseeable future.”

Spirit Aero (SPR) said it has been facing bloated inventory and lower cash flows due to recent changes in the production and delivery process implemented by Boeing (BA).

IRobot (NASDAQ:IRBT) is conducting another round of layoffs this year as a planned “operational restructuring” will include a 16% reduction in the company’s workforce, representing 105 employees.

The restructuring will result in charges of around $5.3M relating to severance packages and related benefits, with the majority of the costs to be reflected in the current quarter.

This is the second time the parent company of the Roomba vacuum cleaner has eliminated employees to trim costs. In January, iRobot (IRBT) cut 31% of its workforce in the wake of a terminated acquisition by Amazon (AMZN).

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Catalyst watch:

• Notable investor events include The Future of AI Conference in London, with speakers from Google DeepMind, Microsoft (MSFT), and Eli Lilly (LLY) due to participate.

• The MSCI Index review announcement is scheduled to be made. The announcement typically includes additions to and deletions from various MSCI indexes, such as the MSCI ACWI Index, MSCI World Index, MSCI Emerging Markets Index, and others.

• Celsius Holdings (CELH) will hold its earnings call at 8 am. Updates from management on the distribution deal with PepsiCo (PEP) could be key.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the green. Crude oil is down 1.5% at $70/barrel. Bitcoin is up 7.4% at $73,000.

In the world markets, the FTSE 100 is up 1.2% and the DAX is up 0.8%.

The biggest movers for the day premarket: Former President Donald Trump’s media company (DJT) is up 30% as election results show him clinching the win for President.

On today’s economic calendar:

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.