Wall Street Breakfast Podcast: Perspectives from Spirit, ETH ETF

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Spirit Airlines (SAVE) Falls on Weak Q2 Outlook, Non-Ticket Revenue Drops. (00:24) Spot Ether (ETH-USD) ETFs Set to Start Trading as Early as July 23 – Report. (01:28) Musk Moves SpaceX to Texas, Calls California Transgender Law “The Straw That Broke the Camel.” (02:14)

This is an abridged transcript of the podcast.

Spirit Airlines (NYSE: SAVE) is down 5.7% premarket as the company cut its second-quarter revenue forecast to $1.28 billion from its previous estimate of $1.32 billion to $1.34 billion.

The airline’s non-ticket revenue (SAVE), which includes fees for checked bags, carry-on bags and seat selection, is now expected to be “several dollars lower than expected,” at about $64 per passenger.

The ultra-low-cost airline expects to report an adjusted loss of $173 million to $160 million, compared with a previous estimate of a loss of $145 million to $120 million. Spirit (SAVE) estimates a negative adjusted operating margin of between 13.5% and 12.5% ​​for the second quarter.

The airline attributes this underperformance to “additional pressure on ancillary prices due to competitive market developments.”

The airline has struggled to turn a profit since the pandemic, due to weaker demand, engine problems at Pratt & Whitney and the fallout from a proposed acquisition by JetBlue Airways.

Spirit plans to release its second-quarter results in early August.

Exchange-traded funds investing directly in ether (ETH-USD) will likely begin trading on July 23, according to a media report earlier this week.

Recall that the U.S. Securities and Exchange Commission approved some regulatory requirements imposed by potential issuers in May. But the regulator has not yet approved the applicants’ S-1 registration filings.

The Block reported, citing a source familiar with the matter, that the S-1 filings are due today at 5:30 p.m. ET.

These ether-holding funds, once allowed to trade, will likely attract slower demand than their bitcoin cash (BTC-USD) counterparts, in part “due to the lack of an ETH staking feature in the ETF,” Bernstein argued late last month.

SpaceX and social media site X are pulling out of California and joining the rest of Elon Musk’s companies in Texas after California’s new transgender law was the “last straw.”

In a message posted on X, Musk said SpaceX was moving its headquarters from Hawthorne, California, to Starbase, Texas, attributing the decision to a new law signed Tuesday by California Gov. Gavin Newsome that prohibits school districts from requiring teachers to notify parents of a student’s change in sexual orientation and gender identity.

“As a result of this law and many others that have come before it, attacking both families and businesses, SpaceX will now move its headquarters from Hawthorne, California to Starbase, Texas,” the billionaire said on X.

X is headquartered in San Francisco, California and will be relocating to Austin.

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Catalyst Watch:

• The Mirage hotel and casino in Las Vegas is closing, bringing one of the Strip’s most iconic properties to a close. MGM Resorts International (MGM) and Caesars Entertainment (CZR) could see higher room rates in the near term due to the combined reduction in total room supply on the Las Vegas Strip due to the closures of the Tropicana and Mirage.

• JPMorgan (JPM) CEO Jamie Dimon will share his views on the economy, interest rates, global politics and other topics at an event for wealth management clients.

Now let’s look at the markets at 6 a.m. Ahead of today’s session open, Dow, S&P and Nasdaq futures are in the red. Crude oil is flat at $80 a barrel. Bitcoin is up 2.8% at $65,000.

In global markets, the FTSE 100 is flat and the DAX is down 0.2%. The Indian market is closed today for a public holiday.

Biggest movers of the day before markets opened: Shares of Five Below (NASDAQ:FIVE) fell 13% after it announced a leadership transition and a negative outlook for the second quarter.

Today’s economic agenda:

• 8:30 a.m. Start of work and building permits

• 9:35 a.m. Fed member Christopher Waller to speak on the economic outlook at an event in Kansas City, Missouri