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United Airlines plans to add daily flights to Vietnam and Thailand in October, further expanding the network for the U.S. carrier that already has the most Asia service.

In the expansion, United is using a tactic that’s unusual in its network: Its airplanes from Los Angeles and San Francisco that are headed for Hong Kong will then go on to the two new destinations. The Bangkok and Ho Chi Minh City, Vietnam, service is set to begin on Oct. 26.

On Oct. 25, United plans to add a second daily nonstop flight from San Francisco to Manila, Philippines, and on Dec. 11, it will launch nonstops from San Francisco to Adelaide, Australia, which will operate three days a week.

The carrier has aggressively been adding far-flung destinations not served by rivals to its routes, like Nuuk, Greenland, and Bilbao, Spain, which start later this year. Getting the mix right is especially important as carriers seek to grow their lucrative loyalty programs and need attractive destinations to keep customers spending.

Bangkok, in particular, “is in even more demand now given the popularity of ‘White Lotus,’” Patrick Quayle, United’s senior vice president of network and global alliances, said of the HBO show.

He said the carrier isn’t planning on cutting any international routes for its upcoming winter schedule.

This post appeared first on NBC NEWS

WASHINGTON — Boeing CEO Kelly Ortberg told senators on Wednesday that he’s happy with the company’s progress improving manufacturing and safety practices following several accidents, including a near catastrophe last year.

Ortberg faced questioning from the Senate Commerce Committee about how the company will ensure that it doesn’t repeat past accidents or manufacturing defects, in his first hearing since he became CEO last August, tasked with turning the manufacturer around.

Sen. Ted Cruz, R.-Texas, the committee’s chairman, said he wants Boeing to succeed and invited company managers and factory workers to report to him their opinions on its turnaround plan. “Consider my door open,” he said.

Ortberg acknowledged the company still has more to do.

“Boeing has made serious missteps in recent years — and it is unacceptable. In response, we have made sweeping changes to the people, processes, and overall structure of our company,” Ortberg said in his testimony. “While there is still work ahead of us, these profound changes are underpinned by the deep commitment from all of us to the safety of our products and services.”

Boeing CEO Kelly Ortberg testifies on Capitol Hill on April 2.Brendan Smialowski / AFP – Getty Images

Boeing executives have worked for years to put the lasting impact of two fatal crashes of its best-selling Max plane behind it. 

Ortberg said Boeing is in discussions with the Justice Department for a revised plea agreement stemming from a federal fraud charge in the development of Boeing’s best-selling 737 Maxes. The previous plea deal, reached last July, was later rejected by a federal judge, who last month set a trial date for June 23 if a new deal isn’t reached.

Boeing had agreed to plead guilty to conspiring to defraud the U.S. government, pay up to $487.2 million and install a corporate monitor at the company for three years.

“We’re in the process right now of going back with the DOJ and coming up with an alternate agreement,” Ortberg said during the hearing. “I want this resolved as fast as anybody. We’re still in discussions and hopefully we’ll have a new agreement here soon.”

Asked by Sen. Maria Cantwell, the ranking Democrat on the committee, whether he had an issue with having a corporate monitor, Ortberg replied: “I don’t personally have a problem, no.”

Ortberg and other Boeing executives have recently outlined improvements across the manufacturer’s production lines, such as reducing defects and risks from so-called traveled works, or doing tasks out of sequence, in recent months, as well as wins like a contract worth more than $20 billion to build the United States’ next generation fighter jet.

But lawmakers and regulators have maintained heightened scrutiny on the company, a top U.S. exporter.

“Boeing has been a great American manufacturer and all of us should want to see it thrive,” Sen. Ted Cruz, a Texas Republican and chairman of the committee, said in a statement in February announcing the hearing. “Given Boeing’s past missteps and problems, the flying public deserves to hear what changes are being made to rehabilitate the company’s tarnished reputation.”

The Federal Aviation Administration last year capped Boeing’s production of its 737 Max planes at 38 a month following the January 2024 door plug blowout. The agency plans to keep that limit in place, though Boeing is producing below that level.

Ortberg said at the hearing Wednesday that the company could work up to production rate of 38 Max planes a month or even higher sometime this year, but said Boeing wouldn’t push it if the production line isn’t stable.

Acting FAA Administrator Chris Rocheleau said at a Senate hearing last week that the agency’s oversight of the company “extends to ongoing monitoring of Boeing’s manufacturing practices, maintenance procedures, and software updates.”

This post appeared first on NBC NEWS

Retailers and brands have turned to Vietnam to manufacture goods from sneakers to couches while moving some or all production out of China.

For years, China’s southern neighbor became a popular alternative for companies trying to avoid the crossfire of U.S. trade tensions with Beijing. Now, as President Donald Trump expands his tariff targets, they can no longer steer clear.

Trump said he will put a 46% duty on imports from Vietnam as part of a new wave of global levies announced Wednesday. That could soon raise costs for major corporations in the apparel, furniture and toy space, and some of them may pass those increases to consumers in the form of price hikes. The tariffs on Vietnam take effect on April 9.

China exported more goods to the U.S. than any other country for more than two decades, but Mexico surpassed China as the top source in 2023. China is now the second largest supplier to the U.S., accounting for $438.9 billion worth of goods in 2024, according to government data from the Office of the U.S. Trade Representative.

For companies that have looked to diversify the countries they rely on for production and reduce risks from trade conflicts with China, Vietnam has also become a popular place to go. Imports from Vietnam grew to $136.6 billion in 2024, up about 19% from 2023, according to the Office of the U.S. Trade Representative.

On the other hand, imports from China rose only 2.8% from 2023 to 2024, according to government data. Imports from China dropped about 18% last year when compared to 2022, when the U.S. brought in $536.3 billion in goods from the country.

The duties will hit companies at a time when many consumers have become value-conscious and selective about spending due to persistent inflation and concerns about the economy. While it is unclear now which companies will raise prices due to the tariffs, businesses may be reluctant to shoulder the higher costs as they forecast lackluster spending in the months ahead.

Some household names will feel the pinch from Vietnam tariffs. Nike manufacturers about half of its footwear in China and Vietnam, with about 25% coming from Vietnam. Trump will put a 34% tariff on top of existing 20% duties on imports from China, for an apparent rate of 54%, a White House official told CNBC.

The tariffs would be yet another headwind for the sneaker and athletic apparel giant, which already delivered a disappointing forecast for the current quarter. That guidance, which projects a double-digit percentage sales decline in the three-month period, included the estimated impact from tariffs on imports from China and Mexico.

Expanded tariffs could stall or slow Nike’s efforts to revive its brand and improve sales under its new CEO Elliott Hill, a company veteran who took the helm last fall.

Nike shares dropped more than 6% in extended trading Wednesday. Adidas and other major footwear players also rely heavily on Vietnam.

The two companies did not immediately respond to CNBC’s request for comment.

Nearly a third of footwear imports in the U.S. came from Vietnam in 2023, the most recent full-year data available, according to the Footwear Distributors and Retailers of America, an industry trade group.

Steve Madden, for example, said on an earnings call in early November that it would slash its imports to the U.S. from China by as much as 45% over the next year. The footwear maker made that announcement just days after Trump’s presidential victory, following his campaign trail promises to impose steep tariffs on countries like China.

Yet one of the nations Steve Madden has accelerated its move to is Vietnam, along with Cambodia, Mexico and Brazil, CEO Edward Rosenfeld said at the time on the earnings call.

Vietnam was the second largest country for suppliers of Ugg and Hoka parent company Deckers Brands as of this month. The company has 68 supply chain partners in Vietnam, which is surpassed only by its 125 suppliers in China. Deckers shares dropped nearly 9% in extended trading. The company did not immediately respond to a request for comment.

VF Corporation, which is made up of footwear, apparel and accessories brands including The North Face, Timberland, Vans and Jansport, has a heavy reliance on China and Vietnam, too. About 38% of its suppliers are in China and 17% are in Vietnam, adding up to 55% of exposure across the two countries, according to a manufacturing disclosure from December.

The company’s shares dropped more than 8% in extended trading Wednesday. VF declined to comment, citing its quiet period before its upcoming earnings report.

The furniture industry has also ramped up its reliance on Vietnam.

In 2023, 26.5% of U.S. furniture imports came from the country, close behind the 29% coming from China, according to data from the Home Furnishings Association, a trade group that lobbies on behalf of home goods retailers. The group cited investment banking firm Mann, Armistead & Epperson — one of the furniture industry’s top sources for data.

Taken together, that means about 56% of U.S. furniture imports come from both regions combined.

On an earnings call in February, Wayfair CEO Niraj Shah said the shift to countries outside of China has been “a growing trend” since Trump enacted tariffs during his first administration.

He said places like Cambodia, Indonesia, Thailand, the Philippines and Vietnam “have grown as places where folks have factories and where our goods are coming from.”

Wayfair’s stock plunged about 12% in extended trading. In a statement, Wayfair said it is “closely monitoring the evolving trade landscape.” The company added it is “well-positioned to continue offering customers the best possible combination of value, assortment, and experience.”

Toymakers have also leaned on Vietnam to make more merchandise that’s imported and sold to kids and adults across the U.S. Hasbro, SpinMaster, Mattel and Crayola are among the companies that work with GFT Group, one of the largest toy manufacturers in the Southeast Asia.

In addition to long-established manufacturing facilities in China, GFT currently has five production facilities in northern Vietnam that employ over 15,000 workers.

On a call in early March, Funko Chief Financial Officer Yves LePendeven said the company, which is known for its big-eyed plastic collectibles called Pops, was working hard to control what it could in the year ahead. That includes trying to offset tariffs by “renegotiating factory costs, accelerating our shift in production to other sourcing countries, and implementing pricing adjustments,” he said.

On the call, he said about a third of Funko’s global product purchases come from China. He didn’t name the countries that Funko was moving production to, but it is a customer of GFT Group.

Those toymakers did not immediately respond to CNBC’s requests for comment.

Curtis McGill is the co-founder of Hey Buddy Hey Pal, a toy company that specializes in Easter egg decorating kits. He said he expects the 46% tariffs to raise toy costs in the U.S., but added companies will likely be negotiating with suppliers in Vietnam to try to mitigate those hikes.

“A lot of manufacturers and the actual toy companies have been already having conversations with manufacturing plants having to to help in some regards, because the toy companies are getting pressure to try and maintain prices on this side from the retailers,” McGill said.

For companies, including apparel makers, the new tariff policies have raised questions about whether — and where — to potentially move their manufacturing. Last month, an investor asked American Eagle Outfitters about its exposure to Vietnam on its most recent earnings call.

Chief Financial Officer Michael Mathias said the jeans and apparel brand’s production is similar in Vietnam and China, with “high-teens to 20%” of production in each of those countries. He said the company aims to trim that back to single-digits by the back half of the year.

American Eagle shares dipped more than 5% on Wednesday. The company did not immediately respond to CNBC’s request for comment.

Yet both Mathias and American Eagle CEO Jay Schottenstein said on the company’s last earnings call that it will be crucial to stay flexible, while waiting to see how tariffs would play out and which countries would be targeted.

Schottenstein referred to eight years ago during the first Trump administration, when American Eagle also faced challenges and had to figure out a new plan.

Schottenstein said there’s another shift coming, but “nobody knows what the story is yet.”

“I wouldn’t be rushing,” he said. “You go rush, where am I rushing to? I don’t know where I’m rushing to.”

Peter Baum is the chief financial officer and chief operation officer of Baum Essex, a New York-based manufacturer with licenses to make products for brands like Nautica, Betsey Johnson and Steve Madden. During the first Trump administration in 2019, Baum moved factories from from China to the Philippines, Cambodia, Vietnam and India.

He told CNBC on Wednesday that the reciprocal tariffs would do massive damage to his company.

“This is how you start a global depression. After 80 years and five generations Trump just put us out of business,” Baum said.

— CNBC’s Sarah Whitten, Jason Gewirtz and Eamon Javers contributed to this report.

This post appeared first on NBC NEWS

The Chinese military practiced live-fire strikes in the East China Sea in an escalation of ongoing surprise drills near Taiwan, the People’s Liberation Army’s Eastern Theater Command said in a statement Wednesday.

China’s armed forces launched exercises, dubbed “Strait Thunder-2025A,” in the middle and southern areas of the Taiwan Strait on Wednesday, focusing on testing the troops’ capabilities of “joint blockade and control” and “precision strikes on key targets,” the Eastern Theater Command’s spokesperson Senior Colonel Shi Yi said.

As part of the drills, which were not announced ahead of time, the ground army of the Eastern Theater Command conducted “live-fire long-range strike drills in designated areas of the East China Sea,” according to the statement.

“The drills involved precision strikes on simulated targets such as key ports and energy facilities and achieved the intended results,” Shi added.

Wednesday’s drills came after the PLA conducted joint exercises involving its army, navy, air force and rocket force around Taiwan “from multiple directions” on Tuesday, days after US defense chief Pete Hegseth vowed to counter “China’s aggression” on his first visit to Asia.

Eastern Theater Command said the drills were a “stern warning and forceful deterrence against ‘Taiwan Independence’ separatist forces,” calling them “legitimate and necessary action to safeguard China’s sovereignty and national unity.”

For Taiwan, a democracy of some 23 million people that sits just 80 miles from China at its nearest point, the drills are the latest reminder of the threat that comes from its giant Communist Party-run neighbor, which claims the island as its own and has vowed to seize it by force if necessary.

Taiwan has denounced the drills as an “irrational provocation” and accused China of being a “troublemaker.”

The United States, Taiwan’s biggest international backer, condemned what it called “China’s irresponsible threats and military pressure operations near Taiwan.”

“China’s escalating military intimidation tactics only serve to exacerbate tensions and undermine cross-Strait peace and stability,” the State Department said in a statement.

This is a developing story and will be updated.

This post appeared first on cnn.com

Israeli Defense Minister Israel Katz announced Wednesday a major expansion of the military’s operation in Gaza involving the seizure of large areas of land that would be “incorporated into Israel’s security zones.”

The operation would also involve a “large-scale evacuation of Gaza’s population from combat zones,” the statement said without specifying details.

Katz said the military operation would expand to “crush and clear the area of terrorists and terror infrastructure, while seizing large areas that will be incorporated into Israel’s security zone.”

The Israeli military’s spokesperson for Arabic media late on Tuesday ordered residents in Gaza’s southern Rafah area to leave their homes and move north.

Katz’s statement on Wednesday did not specify whether additional Israeli troops would be involved in the expanded operation.

This is a developing story and will be updated.

This post appeared first on cnn.com

Buildings in Myanmar are continuing to collapse five days after a powerful earthquake struck the country, creating perilous conditions for rescuers as they attempt to extricate survivors from the rubble.

More than 2,700 people were killed in the 7.7-magnitude quake, with thousands more injured, according to Myanmar’s military junta. Hundreds more remain missing, meaning the death toll is almost certain to rise.

The Myanmar Fire Services Department on Wednesday shared video of a heartwarming moment in the military capital Naypyidaw, where workers pulled a man from the rubble more than 100 hours after the quake, a miraculous rescue that offered a rare moment of hope.

The man appeared tired and disheveled as he was pulled out of an air pocket between broken slabs of concrete, to a round of applause.

A day earlier, a 62-year-old woman was similarly pulled from broken slabs of concrete in Naypyidaw.

Elsewhere, a team of Chinese rescuers on Monday pulled four people – including a five-year-old child and a pregnant woman – from the rubble.

Structurally vulnerable buildings in the country are still collapsing as tremors continue, according to human rights organizations, highlighting the dangers of the rescue mission.

Two hotels collapsed near the epicenter in Mandalay Monday night, after people went back to the structures days after the quake.

“With these additional tremors, fatalities are still occurring,” said Michael Dunford, Myanmar director at the United Nations World Food Programme.

“Many people are still sleeping out in the open on the streets or in the parks because they are too scared to go back into their homes. And of course, this is hampering our efforts to reach them and to provide the type of support that they need.”

Humanitarian organizations are continuing to stress the need for urgent aid, especially to more remote areas of the country.

Even before the quake, four years of civil war had left millions without adequate shelter and battered health and communication infrastructure.

In Sagaing town, near the epicenter of the quake, residents have described scenes of heartbreak and desperation as they wait for urgent medical supplies and food.

Rights group Amnesty International spoke to three residents, who said there was a rising need for body bags, torches, and mosquito-repellant coils. They also told the group that the military, which largely controls the town, was imposing “strict surveillance” for light vehicles traveling to Sagaing from Mandalay.

“Soldiers are inspecting deliveries, and checks can take longer if they come from other areas in Sagaing that have more connections to resistance groups,” Amnesty said.

The ruling junta seized power from Myanmar’s democratically elected government in 2021, sparking a brutal civil war between ethnic rebel groups and its military.

While the junta has reaffirmed its commitment to allowing assistance, rights groups have criticized Myanmar’s leaders for restricting access to some affected areas.

“The junta needs to break from its appalling past practice and ensure that humanitarian aid quickly reaches those whose lives are at risk in earthquake-affected areas,” said deputy Asia director at Human Rights Watch Bryony Lau.

Amnesty International on Tuesday urged Myanmar’s military to “refrain from deliberate air strikes and other forms of attack on civilian targets” in earthquake-affected areas.

Meanwhile, a major rebel alliance in Myanmar declared a temporary ceasefire to facilitate rescue efforts.

“We strongly desire that urgent humanitarian efforts, which are immediately needed for the earthquake-affected population, be carried out as swiftly and effectively as possible,” the Three Brotherhood Alliance, which involves the Ta’ang National Liberation Army, the Kokang’s Myanmar National Democratic Alliance Army and Arakan Army, said in a joint statement Tuesday.

International teams, including groups from China, Russia, and Pakistan, have been assisting with rescue efforts in Myanmar. Two Indian naval vessels carrying humanitarian aid, relief supplies and food arrived in Yangon Tuesday morning.

But humanitarian workers have warned that years of underfunding means more needs to be done.

“This is time, to be honest, for the world to step up and support the people of Myanmar,” UN Humanitarian Coordinator for Myanmar Marcoluigi Corsi said Tuesday.

“We keep saying that Myanmar does not rank very high among the different emergencies… The humanitarian response in Myanmar has been chronically underfunded for years. Four months into the year right now, less than 5 per cent of the required US$1.1 billion of the Humanitarian Response Plan has been received.”

Friday’s devastating quake was felt all the way in neighboring Thailand, where at least 22 people died in the capital Bangkok.

Of that number, 15 people were killed after an under-construction high-rise building collapsed, officials said.

This post appeared first on cnn.com

The Pentagon has sent at least six B-2 bombers – 30% of the US Air Force’s stealth bomber fleet – to the Indian Ocean island of Diego Garcia, in what analysts have called a message to Iran as tensions once again flare in the Middle East.

The deployment comes as US President Donald Trump and his defense chief Pete Hegseth warn of further action against Iran and its proxies, while US jets continue to attack the Tehran-backed Houthi rebels in Yemen.

Images taken by private satellite imaging company Planet Labs on Tuesday show the six US bombers on the tarmac on the island, as well as shelters that could possibly conceal others. Tankers and cargo aircraft are also at the island airbase, a joint US-British base which is 3,900 kilometers (2,400 miles) from Iran’s southern coast.

Planet Labs images from Sunday show four B-2s and six support aircraft on the Diego Garcia tarmac.

Without mentioning the B-2s directly, Pentagon spokesperson Sean Parnell confirmed that the US military is sending additional aircraft and “other air assets” to the region to improve America’s defensive posture in the region.

“The United States and its partners remain committed to regional security … and are prepared to respond to any state or non-state actor seeking to broaden or escalate conflict in the region,” Parnell said.

“The deployment of these B-2s is clearly designed to send a message – perhaps several messages – to Iran,” said the former US Air Force colonel.

“One of them could be a warning to cease supporting the Houthis in Yemen. Another message the Trump administration might be sending to Iran is that it wants a new nuclear deal (to replace the ‘bad’ deal Trump withdrew the US from in his first term) and if Iran doesn’t start to negotiate with the US the consequences could be the destruction of Iran’s nuclear weapons program,” Leighton said.

Trump began ramping up military action against the Houthis in mid-March, with airstrikes that killed at least 53 people and wounded almost 100 others in Yemen, according to the Houthi-run Health Ministry.

Strikes have continued since, as Houthis threaten US warships in the region, in attacks that the militants say are in solidarity with Gaza as it faces bombardment by Israel, a key US ally.

In disclosures that caused a major controversy for the Trump administration, Hegseth shared sensitive information last month on pending military strikes against Houthi militants on an unsecured group chat with top national security officials — a chain to which The Atlantic’s editor-in-chief Jeffrey Goldberg was accidentally added.

Trump, in a Tuesday post on his social media platform Truth Social, on Tuesday threatened more could be coming.

“Stop shooting at U.S. ships, and we will stop shooting at you. Otherwise, we have only just begun, and the real pain is yet to come, for both the Houthis and their sponsors in Iran,” Trump posted.

Trump has also been pushing Iran to make a deal over its nuclear capabilities, saying on March 19 that he would give Tehran two months to come to an agreement or face the consequences.

There “are two ways Iran can be handled: militarily, or you make a deal. I would prefer to make a deal, because I’m not looking to hurt Iran,” Trump told Fox News last month.

But Iran this week rejected any direct negotiations.

Defense Secretary Pete Hegseth “continues to make clear that, should Iran or its proxies threaten American personnel and interests in the region, the United States will take decisive action to defend our people,” Parnell said.

“Six is a serious number. For Houthi deeply buried targets, two or maybe three, but six B-2s is a major effort,” Layton said.

“Such targets would potentially include Iranian nuclear and weapons storage facilities,” the former US Air Force officer said.

Layton, the aviation analyst, noted that the six B-2s likely represent the entire deployable fleet of the aircraft.

“I assume there are one or two at home for training and another few standing nuclear alert. Rest in maintenance,” said Layton, a former Royal Australian Air Force pilot and now visiting fellow at the Griffith Asia Institute.

Parnell, the Pentagon spokesperson, said the aircraft carrier USS Harry S. Truman, which has been carrying out strikes on Houthi rebels in Yemen, will stay in the region through this month, though its deployment there was scheduled to have ended at the end of March.

Hegseth “also ordered the deployment of additional squadrons and other air assets that will further reinforce our defensive air-support capabilities,” Parnell said. It’s unclear what squadrons or assets will be moving to the region.

Parnell added that the Nimitz Strike Group is deploying to the Western Pacific “to preserve our warfighting advantage in the Indo-Pacific.”

Leighton said that the presence of the B-2s on Diego Garcia would be noted across Asia.

“It’s unlikely the deployment of six B-2s to Diego Garcia is meant to deter actions by other powers, such as China or Russia, but they are surely taking note of this deployment as well. Of course, we can’t forget that Iran is an ally of those two countries,” he said.

This post appeared first on cnn.com

The United States has approved the potential sale of 20 F-16 fighter jets to Manila, giving the key US ally in the Indo-Pacific a major upgrade to its air force just days after US Defense Secretary Pete Hegseth vowed to counter “China’s aggression.”

The US Defense Security Cooperation Agency (DSCA) announced the proposed sale of the F-16s and related equipment, worth an estimated $5.58 billion, in a statement on Tuesday.

“This proposed sale will support the foreign policy and national security of the United States by helping to improve the security of a strategic partner that continues to be an important force for political stability, peace, and economic progress in Southeast Asia,” DSCA said.

The announcement comes less than a week after Hegseth visited the Philippines, his first trip to Asia as defense chief, and said Washington will enhance its military alliance with Manila as it aims to “reestablish deterrence” to counter “China’s aggression” in the Indo-Pacific region.

On Wednesday, China cautioned Manila on the deal.

“Any defense and security cooperation that the Philippines engages in with other countries should not target or harm the interests of any third party, nor should it threaten regional peace and security or escalate tensions in the region,” Chinese Foreign Ministry spokesperson Guo Jiakun said.

“As for who is fueling the flames, who is provoking military confrontation, and who is turning Asia into a powder keg, we believe that regional countries can see the situation clearly.”

The Philippines has been on the front lines of China’s increasingly aggressive posture in Asia. Beijing seeks to assert its claim over the bulk of the South China Sea, despite an international ruling denying its sovereignty over the waterway.

Hegseth said Friday the US would deploy additional advanced military capabilities to the US ally for joint training, enhance interoperability for “high end operations” and prioritize defense industrial cooperation.

In its statement, DSCA said Manila had requested to buy 16 F-16Cs – single-seat, single-engine fighter jets – and four F-16Ds, dual-seat jets that are usually used for training purposes.

The F-16s are the block 70/72 newest variant of the workhorse military warplane, which entered service with the US Air Force in the late 1970s.

Manufacturer Lockheed Martin says the new F-16s are the world’s most advanced fourth-generation fighter, touting a “structural service life” of more than 12,000 hours.

The F-16s, along with advanced avionics, radar and weaponry included in the deal, are a significant upgrade to the Philippine Air Force’s fighter fleet. Currently, it has only 12 South Korean-made FA-50 jets, a lighter ground attack and fighter jet.

The F-16s have a top speed of more than 1,500 miles per hour, Lockheed Martin says, about 350 mph faster than the FA-50.

Speaking alongside Philippine Defense Secretary Gilbert Teodoro on Friday, Hegseth called the US-Philippine relationship an “ironclad alliance, particularly in the face of Communist China’s aggression in the region.”

The Trump administration has vowed to “truly prioritize a shift” to the Indo-Pacific, Hegseth said, with the “recognition that for the 21st century to be a free century, America needs to stand alongside our allies and partners shoulder to shoulder.”

The American military presence in Asia is seen by allies as a critical counterbalance in a fractious region where China has been rapidly expanding its military might and a belligerent North Korea has been empowered by closer ties with Russia.

Trump has repeatedly questioned the structure of US military alliances and whether the US was getting enough out of such partnerships and basing arrangements, including those in Asia where tens of thousands of troops are stationed in sprawling bases in Japan and South Korea.

This post appeared first on cnn.com

Thank You!

I’ve been writing at StockCharts.com for nearly 20 years now and many of you have supported my company, EarningsBeats.com, and I certainly want to show my appreciation for all of your loyalty. I believe we’re at a major crossroads in the stock market as the S&P 500 tests the recent price low from earlier in March. I called for a 2025 correction at our MarketVision 2025 event on January 4, 2025, to start the year and now it’s a reality. We decided at that time to add quarterly updates to our MarketVision series and our first update (Q1 update) is being held today at 5:30pm ET. I would like to invite everyone to join EarningsBeats.com and join me later today. We will record the event for those who cannot attend live.

Even if you decide not to join as an EB.com member, I do want to provide you my latest Weekly Market Report that we send out to our members at the start of every week, in addition to our Daily Market Report, which is published Tuesdays through Fridays.

I hope you enjoy!

MarketVision 2025 Q1 Update

Join us for our MarketVision 2025 Q1 update at 5:30pm ET today. This is an exclusive event for our annual members. If you’re already an annual member, room instructions will be sent to you in a separate email.

Not yet an annual member? Save $200 on membership TODAY ONLY. This offer will expire at the start of today’s event, so CLICK HERE for more information and details!

If you recall, on Saturday, January 4, 2025, I provided my annual forecast, which included my belief that we’d see a 10% on the S&P 500. That 10% correction is now in the rear view mirror, but what will happen from here? A lot has changed and we must remain objective as to where we might go. I’ll provide you my latest thoughts on this during today’s event.

I hope to see you at 5:30pm ET!

ChartLists Updated

The following ChartLists were updated over the weekend:

  • Strong Earnings (SECL)
  • Strong Future Earnings (SFECL)
  • Raised Guidance (RGCL)

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Weekly Market Recap

Major Indices

Sectors

Top 10 Industries Last Week

Bottom 10 Industries Last Week

Top 10 Stocks – S&P 500/NASDAQ 100

Bottom 10 Stocks – S&P 500/NASDAQ 100

Big Picture

The monthly PPO and monthly RSI are both moving lower now, but remember, we have not ever seen a secular bear market that did not coincide with a negative monthly PPO and a monthly RSI below 40. I believe we’ll see this market weakness end LONG BEFORE we see either of those technical developments on the above chart.

Sustainability Ratios

Here’s the latest look at our key intraday ratios as we follow where the money is traveling on an INTRADAY basis (ignoring gaps):

QQQ:SPY

Relative weakness in the QQQ:SPY, including and excluding gaps, has turned back down in a big way. That’s not what you want to see from a bullish perspective. We must remain on guard for potential short-term downside action, especially if key closing price support at 5521 fails on the S&P 500.

IWM:QQQ

Small caps (IWM) seem to be performing better than the aggressive, Mag 7 led NASDAQ 100, but that’s not saying a lot when you look at the IWM’s absolute performance in the bottom panel. Perhaps we’ll still get the small-cap run that we’ve been looking for over the past year, but it’ll likely need to be accompanied by a much more dovish Fed and with the short-term fed funds rate falling.

XLY:XLP

I mentioned last week that this chart was the biggest positive of the prior week. I suppose I now need to say it’s the biggest negative of last week because it did an abrupt about-face. It appears that the options expiration and oversold bounce we enjoyed for over a week have ended. We haven’t broken back to new relative lows, which would obviously be bearish, but we did back a lot of ground that we had previously made up. The XLY:XLP ratio is one of the most important in the stock market, as far as I’m concerned. Watching it turn back down is not a great feeling, and a new upcoming relative low would only make it worse.

Sentiment

5-day SMA ($CPCE)

Sentiment indicators are contrarian indicators. When they show extreme bullishness, we need to be a bit cautious and when they show extreme pessimism, it could be time to become much more aggressive. Major market bottoms are carved out when pessimism is at its absolute highest level.

When an elevated Cboe Volatility Index ($VIX) sends a signal that we could see pain ahead, which is exactly the message sent recently as the VIX approached 30, I usually turn my attention to a rising 5-day SMA of the equity-only put-call ratio ($CPCE) to help identify market bottoms. Once the stock market turns emotionally and begins to show fear and panic, key price support levels tend to fail, and a high reading in the VIX, combined with a huge reversal on the S&P 500 (think capitulation), usually are typical ingredients to establish a key bottom.

We’re finally starting to see some higher daily CPCE readings, which suggests that options traders are growing much more nervous, and that’s a good thing if we’re going to try to carve out a meaningful market bottom. The last four days have seen readings of 0.65, 0.71, 0.72, and 0.68. That’s not quite high enough to grow more convinced of an impending bottom in stocks, but it’s light years better than what we’ve seen during any other recent market selloffs.

253-day SMA ($CPCE)

We’re coming off an extended run higher in the benchmark S&P 500, where we topped on February 19. The long-term picture with sentiment is much different than it was 1.5 to 2 years ago. Back then, everyone was bearish, leading to an important market bottom and a subsequent rally to new all-time highs. We could use more bearishness in options to set us up for another rally to all-time highs. Based on this chart, we’re not there yet.

Volatility ($VIX)

Here’s the current view of the VIX:

There was one key development in the VIX. From studying the VIX long-term, whenever a top has been reached, and significant selling ensues, the VIX typically spikes into the 20s or 30s before we see some sort of a rebound, like the one we saw recently. When these bounces have been part of bear market counter rallies, the VIX has never dropped below the 16-17 support range. So for those looking for this current correction to morph into a bear market, the hope is absolutely alive and kicking. My interpretation is that bear markets require a certain level of uncertainty and fear. The VIX remaining above that 16-17 level is our proof that the market environment for further selling still exists. In the above chart, the VIX fell to 17 and then quickly reversed and today hit a high of 24.80.

Based on this one signal alone, I cannot rule out further selling ahead and a possible cyclical bear market, as opposed to the much more palatable correction.

Long-Term Trade Setup

Since beginning this Weekly Market Report in September 2023, I’ve discussed the long-term trade candidates below that I really like. Generally, these stocks have excellent long-term track records, and many pay nice dividends that mostly grow every year. Only in specific cases (exceptions) would I consider a long-term entry into a stock that has a poor or limited long-term track record and/or pays no dividends. Below is a quick recap of how I viewed their long-term technical conditions as of one week ago:

  • JPM – nice bounce off the recent 50-week SMA test
  • BA – up more than 20% in less than 2 weeks; 190-192 likely to prove a difficult level to pierce
  • FFIV – 20-week EMA test successful thus far
  • MA – another with a 20-week SMA test holding
  • GS – 10% bounce off its recent 50-week SMA test
  • FDX – lengthy four-month decline finally tested, and held, price support near 220
  • AAPL – weakness has not cleared best price support on the chart at 200 or just below
  • CHRW – testing significant 95 level, where both price and 50-day SMA support reside
  • JBHT – has fallen slightly beneath MAJOR support around 150
  • STX – 85 support continues to hold
  • HSY – did it just print a reverse right shoulder bottom on its weekly chart?
  • DIS – trendless as weekly moving averages are not providing support or resistance
  • MSCI – 3-year uptrend remains in play, though it’s been in a rough 6-7 week stretch
  • SBUX – first critical price test at all-time high near 116 failed miserably; support resides at 85
  • KRE – looking to establish short-term bottom at 55, with 2-year uptrend intact
  • ED – showing strength in March for 9th time in 10 years, moving to new all-time high
  • AJG – continues one of most consistent and dependable uptrends, trading just below all-time high
  • NSC – testing 230 price support as transportation woes continue
  • RHI – has broken recent price support in upper-50s; searching for new bottom with 4.4% dividend yield
  • ADM – struggled again at 20-week EMA, 45 represents a significant test of long-term uptrend
  • BG – approaching 4-year price support at 65 after failed test of declining 20-week EMA
  • CVS – bottom now seems light years away as CVS trades nearly 1-year high
  • IPG – how long can it hold onto multi-year price support at 26?
  • HRL – still bound between price support at 27.50 and 20-week EMA resistance at 30.15
  • DE – still trending above its rising 20-week EMA

Keep in mind that our Weekly Market Reports favor those who are more interested in the long-term market picture. Therefore, the list of stocks above are stocks that we believe are safer (but nothing is ever 100% safe) to own with the long-term in mind. Nearly everything else we do at EarningsBeats.com favors short-term momentum trading, so I wanted to explain what we’re doing with this list and why it’s different.

Also, please keep in mind that I’m not a Registered Investment Advisor (and neither is EarningsBeats.com nor any of its employees) and am only providing (mostly) what I believe to be solid dividend-paying stocks for the long term. Companies periodically go through adjustments, new competition, restructuring, management changes, etc. that can have detrimental long-term impacts. Neither the stock price nor the dividend is ever guaranteed. I simply point out interesting stock candidates for longer-term investors. Do your due diligence and please consult with your financial advisor before making any purchases or sales of securities.

Looking Ahead

Upcoming Earnings

Very few companies will report quarterly results until mid-April. The following list of companies is NOT a list of all companies scheduled to report quarterly earnings, however, just key reports, so please be sure to check for earnings dates of any companies that you own. Any company in BOLD represents a stock in one of our portfolios and the amount in parenthesis represents the market capitalization of each company listed:

  • Monday: None
  • Tuesday: None
  • Wednesday: None
  • Thursday: None
  • Friday: None

Key Economic Reports

  • Monday: March Chicago PMI
  • Tuesday: March PMI manufacturing, March ISM manufacturing, February construction spending, Feb JOLTS
  • Wednesday: March ADP employment report, February factory orders
  • Thursday: Initial jobless claims, March ISM services
  • Friday: March nonfarm payrolls, unemployment rate, average hourly earnings

Historical Data

I’m a true stock market historian. I am absolutely PASSIONATE about studying stock market history to provide us more clues about likely stock market direction and potential sectors/industries/stocks to trade. While I don’t use history as a primary indicator, I’m always very aware of it as a secondary indicator. I love it when history lines up with my technical signals, providing me with much more confidence to make particular trades.

Below you’ll find the next two weeks of historical data and tendencies across the three key indices that I follow most closely:

S&P 500 (since 1950)

  • Mar 31: -7.16%
  • Apr 1: +67.49%
  • Apr 2: +17.08%
  • Apr 3: -0.40%
  • Apr 4: -17.99%
  • Apr 5: +68.25%
  • Apr 6: +45.38%
  • Apr 7: -48.59%
  • Apr 8: +62.64%
  • Apr 9: +60.32%
  • Apr 10: +47.37%
  • Apr 11: -29.33%
  • Apr 12: +63.88%
  • Apr 13: -21.35%

NASDAQ (since 1971)

  • Mar 31: +39.81%
  • Apr 1: +83.56%
  • Apr 2: +18.47%
  • Apr 3: -86.48%
  • Apr 4: -70.46%
  • Apr 5: +112.55%
  • Apr 6: +26.71%
  • Apr 7: -38.23%
  • Apr 8: +44.64%
  • Apr 9: +60.64%
  • Apr 10: +47.74%
  • Apr 11: -51.08%
  • Apr 12: +33.04%
  • Apr 13: -0.08%

Russell 2000 (since 1987)

  • Mar 31: +78.83%
  • Apr 1: +27.91%
  • Apr 2: +18.08%
  • Apr 3: -113.26%
  • Apr 4: -75.19%
  • Apr 5: +101.16
  • Apr 6: +51.29%
  • Apr 7: -90.50%
  • Apr 8: +59.63%
  • Apr 9: +137.22%
  • Apr 10: +5.20%
  • Apr 11: -80.66%
  • Apr 12: +45.00%
  • Apr 13: -37.09%

The S&P 500 data dates back to 1950, while the NASDAQ and Russell 2000 information date back to 1971 and 1987, respectively.

Final Thoughts

As I mentioned last week, I’m sticking with my belief that the S&P 500 ultimate low in 2025 will mark a correction (less than 20% drop) rather than a bear market (more than 20% drop). But a bear market cannot be ruled out. Honestly, I think sentiment ($CPCE) must turn much more bearish. This morning, we had another gap down and early selling and this is beginning to take a toll on options traders as they’re now starting to grow more bearish. As an example, check out this morning’s equity-only put call ratio at Cboe.com:

These Cboe.com readings are very high and show a definite shift in sentiment among options traders. Intense selling pressure and lots of equity puts being traded, relative to equity calls, help to mark bottoms.

Here are a few things to consider in the week ahead:

  • The Rebound. It ended rather quickly last week. I mentioned it’s a rebound until it isn’t. We moved right up to 5782 price resistance on the S&P 500 and the bears took over.
  • The Roll Over. We’re now in rollover mode, but the S&P 500 quickly lost 300 points from 5782 to today’s early low of 5488, which tested key short-term price support from March 13, where we printed a low close of 5521. Can the bulls hold onto support?
  • Nonfarm payrolls. This report will be out on Friday morning and current expectations are for March jobs (131,000) to fall below the February number of 151,000. Also, unemployment is expected to move up slightly from 4.1% to 4.2%. Should any of these numbers come in weaker than expected, the Fed could be in a box and Wall Street could sense it by selling off hard.
  • Sentiment. As I’ve said before, once the VIX moves beyond 20, not many good things happen to stocks. Selling can escalate very quickly as market makers go “on vacation.” Many times, we don’t find a bottom until retail options traders begin buying puts hand over fist. That could be underway right now.
  • Rotation. Rotation led us to where we are now, we need to continue to monitor where the money is going.
  • Seasonality. There is one real positive here. We’re about to move from the “2nd half of Q1”, which historically has produced annualized returns of +5.05% (4 percentage points BELOW the average annual S&P 500 return of +9%), to the “1st half of Q2”, which historically has produced annualized returns of 13.08% (4 percentage points ABOVE the average annual S&P 500 return of +9%). This half-quarter trails only the 1st and 2nd halves of Q4 in terms of half-quarter performance.
  • Manipulation. Yep, it’s starting again, just like it did during 2022’s cyclical bear market, which ultimately marked a critical S&P 500 bottom. We’ve done a ton of research on intraday trading behavior on our key indices, and many market-moving stocks like the Mag 7. Our Excel spreadsheet has been made available to all ANNUAL members, where you can see the manipulation for yourself.

Happy trading!

Tom

Finding stocks that show promising opportunities can be challenging in a market that goes up and down based on news headlines. But, it’s possible.

In this video, watch how Grayson Roze and David Keller, CMT use the tools available in StockCharts to find stocks that are breaking out, displaying relative strength setups, and exhibiting moving average signals.

Be sure to watch it. You may find some hidden gems! 

This video premiered on March 31, 2025.