US stocks mixed, with Nasdaq dragged lower as tech shares jolted by dismal Snap earnings

US stock trader Wall Street stock exchange woman
Traders have been cheered by earnings but are still concerned about inflation.

  • US stocks were mixed on Friday, with the Nasdaq falling after lackluster earnings from Snap.
  • Apple’s recent iPhone privacy changes hurt Snap’s advertising business, which led to a decline in other ad-reliant tech companies.
  • Chinese property developer Evergrande made a key bond payment that prevented it from defaulting.

US stocks were mixed on Friday, with the Nasdaq trading lower following a dismal third-quarter earnings report from Snap.

Recent changes to Apple’s iPhone privacy settings made it harder for Snap to deliver ads to targeted users, and that weakness dragged down shares of other advertising-reliant tech companies like Facebook and Alphabet.

US stocks did get a reprieve from Chinese property developer Evergrande, which managed to make a key bond payment one day prior to the end of a 30-day grace period. If Evergrande failed to make the payment, it would have defaulted on its $300 billion debt pile, causing significant financial harm to firms with exposure to the company’s debt.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Friday:

Digital World Acquisition, the SPAC that plans to merge with Donald Trump’s recently formed media company, extended its two-day rally and surged an additional 90% on Friday. The stock was up more than 300% on Thursday amid the deal hype.

Saba Capital, a hedge fund that owned more than 2 million shares of Digital World, sold its stake in the company on Thursday and said its values are not aligned with Trump Media’s planned social media platform.

The demand for cryptocurrencies among investors continued this week, with Robinhood saying it has more than one million people on its waitlist to gain access to crypto wallets. Meanwhile, another bitcoin futures ETF, this time from Valkyrie, is set to begin trading on Friday.

West Texas Intermediate crude oil rose 1.05%, to $83.37 per barrel. Brent crude, oil’s international benchmark, rallied 0.91%, to $85.38 per barrel.

Gold jumped as much as 1.37%, to $1,806.30 per ounce.

Read the original article on Business Insider

Warrants tied to Donald Trump’s SPAC soar 2,686% amid merger hype

Donald Trump waves to the camera
Former President Donald Trump

  • Warrants tied to Digital World Acquisition, a SPAC that plans to merge with Donald Trump’s Truth Social, soared as much as 2,686% on Thursday.
  • The warrants surged from Wednesday’s close of $0.52 per share to as high as $14.49.
  • SPAC warrants are more volatile than the underlying stock and grant its holders the right to purchase shares of the company at a pre-determined price.

Donald Trump’s plan to merge his Truth Social media company with Digital World Acquisition sent shares of the SPAC soaring more than 400% on Thursday.

But that gain translated into even bigger gains for public warrants tied to the SPAC, which soared as much as 2,686% in Thursday trades.

The Digital World Acquisition Warrants jumped from Wednesday’s close of $0.52 to as high as $14.49 on hype surrounding the proposed merger with Trump’s up and coming social media competitor.

According to Digital World’s S-1 filed with the SEC, the warrants have a strike price of $11.50, meaning they were well in the money as the underlying Digital World stock hit a high of $52 per share. In other words, holders of the warrants could exercise them to purchase shares of the SPAC at $11.50 even though its currently trading well above that level.

Volume in Digital World’s warrants soared to 73 million shares on Thursday, far outpacing the few thousand shares that would trade prior to the deal announcement.

Public warrants tied to SPACs are inherently more volatile than the underlying stock because they can expire worthless and are not redeemable if a deal is not completed within what is often a two-year deadline.

The agreement with Digital World puts an $875 million enterprise value on Trump Media & Technology Group. A potential earnout of $825 million in additional shares could bring the cumulative valuation to $1.7 billion, depending upon the performance of the stock after the merger is completed, Trump Media said in a press release.

Read the original article on Business Insider

US stocks climb as markets strive for 5-day win streak on the back of strong corporate earnings

happy trader

US stocks moved higher on Tuesday and were on track for a 5-day win streak amid a continued deluge of strong third-quarter corporate earnings.

Dow Jones components Procter & Gamble and Johnson & Johnson both reported earnings results that were better than analyst expectations on Tuesday.

Of the 41 companies on the S&P 500 that have reported earnings so far, 85% beat earning estimates by a median of 10%, according to Fundstrat. A total of 76 additional S&P 500 companies are set to report earnings results this week.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:

Bitcoin traded higher to about $63,000 on Tuesday as investors get ready for the highly anticipated launch of a bitcoin futures ETF.

Fundstrat’s Tom Lee said the launch of a bitcoin futures ETF on Tuesday could jumpstart demand for the cryptocurrency and send it soaring 170% to $168,000 as an equilibrium between supply and demand is worked out.

While the ProShares bitcoin futures ETF begins trading on Tuesday, Invesco ditched its plans to launch its own bitcoin futures ETF, losing out on a big potential first-mover advantage.

The SEC released its summary report on the GameStop short-squeeze that took place earlier this year, and said overwhelmingly positive sentiment from Reddit day traders is what drove a bulk of the surge in the stock.

West Texas Intermediate crude oil rose 0.10%, to $81.77 per barrel. Brent crude, oil’s international benchmark, rallied 0.14%, to $84.45 per barrel.

Gold jumped as much as 0.89%, to $1,781.50 per ounce.

Read the original article on Business Insider

Dow spikes 534 points as earnings season opens with a series of strong performances

Trader NYSE green
  • US stocks soared nearly 2% on Thursday as third-quarter earnings season started off strong.
  • Earnings reports from banks including Bank of America, Morgan Stanley, and Citigroup were ahead of expectations.
  • Weekly jobless claims fell to a pandemic-era low, also helping boost investor sentiment.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks jumped nearly 2% on Thursday as investors reacted positively to strong third-quarter earnings beats from banks including Bank of America, Morgan Stanley, and Citigroup.

The bank stocks soared as much a 4% as a continued drop in provisions for credit losses and strength in the investment banking and wealth management sectors drove growth.

Also boosting investor sentiments on Thursday was a strong weekly jobless claim reading of 293,000, representing a pandemic-era low and beating economist estimates. Continuing claims fell to 2.59 million, besting forecasts as well.

The Dow Jones Industrial Average jumped over 500 points while the tech-heavy Nasdaq 100 led markets higher.

Here’s where US indexes stood at the 4:00 p.m. ET close on Thursday:

Cathie Wood’s Ark Invest put its name behind a bitcoin futures ETF that was filed with the SEC on Wednesday, signalling that the futures-based crypto ETF may be eventually approved by the regulatory agency.

Coding platform GitHub soared more than 20% in its IPO debut on Thursday, sporting a valuation of more than $11 billion. The company, which has seen a surge in growth amid the work-from-home trend, priced its IPO at $77 per share.

Chinese brokerage firms fell sharply in Thursday trades as it became apparent that a new data privacy law in China will likely hamper the companies’ ability to service mainland China investors unless they quickly adapt to the new rules.

Citigroup saw its profits surge 48% in the third-quarter following the release of loss reserves and a strong period for equity and fixed income trading.

Bank of America beat its earning estimates for the third-quarter, as record-high advisory fees and a $1.1 billion reserve release helped boost profits.

Morgan Stanley posted a strong third-quarter earnings report as growth in its investment banking and wealth management divisions bested estimates.

West Texas Intermediate crude oil rose as much as 1.16%, to $81.37 per barrel. Brent crude, oil’s international benchmark, jumped 1.14%, to $84.13 per barrel.

Gold jumped as much as 0.23%, to $1,798.80 per ounce.

Read the original article on Business Insider

Dow soars 403 points as jobless claims hit pandemic low and banks deliver strong results

trader, NYSE

US stocks surged on Thursday after weekly jobless claims hit a pandemic-era low and third-quarter earnings results from banks beat expectations. The Dow Jones Industrial Average jumped by about 400 points.

Last week’s jobless claims hits 293,000, representing the lowest level since March 2020 and beating economist expectations of 319,000. Continuing claims fell to 2.59 million, besting forecasts as well.

Strong bank earnings results from Morgan Stanley, Bank of America, and Citigroup beat analyst expectations and suggested consumers remain on solid footing as provisions for credit losses continued to fall from their pandemic heights. The banks were trading higher by about 2% early Thursday.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Thursday:

Cathie Wood’s Ark Invest put its name behind a bitcoin futures ETF that was filed with the SEC on Wednesday, signalling that the futures-based crypto ETF may be eventually approved by the regulatory agency.

Citigroup saw its profits surge 48% in the third-quarter following the release of loss reserves and a strong period for equity and fixed income trading.

Bank of America beat its earning estimates for the third-quarter, as record-high advisory fees and a $1.1 billion reserve release helped boost profits.

Morgan Stanley posted a strong third-quarter earnings report as growth in its investment banking and wealth management divisions bested estimates.

West Texas Intermediate crude oil rose as much as 0.92%, to $81.18 per barrel. Brent crude, oil’s international benchmark, jumped 1.13%, to $84.12 per barrel.

Gold jumped as much as 0.23%, to $1,798.80 per ounce.

Read the original article on Business Insider

US stocks fall as investors receive inflation warnings from the IMF and the Fed

A trader sits in front of a computer monitor on the floor of the New York Stock Exchange.
Trader Leon Montana works on the floor of the New York Stock Exchange.

  • US stocks closed lower Tuesday, a third consecutive loss for Wall Street’s major benchmarks.
  • Stocks turned lower as the inflation warnings came from the IMF and a New York Fed survey.
  • Atlanta Fed President Raphael Bostic said “elevated inflation is episodic,” and tied largely to the pandemic.

US stocks closed lower Tuesday after a wave of inflation warnings washed away earlier gains, highlighting a potential risk to global growth as investors prepared to enter third-quarter earnings season.

All three of Wall Street’s major benchmarks swung into the red, stretching losses for the S&P 500, the Nasdaq Composite, and the Dow industrials into a third consecutive session.

Stocks pulled back as investors assessed caution about inflation from the International Monetary Fund and the Federal Reserve itself. The Survey of Consumer Expectations released by the Federal Reserve Bank of New York showed that short- and medium-term inflation expectations have increased. Expectations for three years ahead rose to 4.2% in September, the highest rate since the survey started in 2013.

Here’s where US indexes stood at 4:00 p.m. on Tuesday:

The International Monetary Fund early Tuesday said inflation has “increased markedly” in US and in some emerging market economies. “Although price pressures are expected to subside in most countries in 2022, inflation prospects are highly uncertain,” it said. The group trimmed its 2021 global growth forecast to 5.9% from 6% as advanced economies grapple in part with supply disruption.

Raphael Bostic, president of the Federal Reserve Bank of Atlanta, said elevated inflation rates may persist. Bostic is a voting member this year on the Fed’s rate-setting board, the Federal Open Market Committee.

“I continue to believe currently elevated inflation is episodic, driven by pandemic conditions such as disruptions in supply chains and labor markets. A major caveat, though, is that the severe and pervasive supply chain issues will probably last longer than most of us initially expected,” said Bostic in a virtual speech addressing the Peterson Institute for International Economics.

Fed Vice Chair Richard Clarida, meanwhile, said Tuesday he continues to see inflation pressures as largely transitory and that the Fed appears on track to complete tapering of assets purchases by the middle of 2022.

“Dr. Doom” economist Nouriel Roubini told Bloomberg on Tuesday the Fed may start reducing its monthly asset purchases from $120 billion in November but could “wimp out”, or pause, the plan if economic growth slows and investors respond with a sharp selloff in markets as they did in 2018.

Investors will see the kickoff of the third-quarter earnings season Wednesday with JPMorgan & Chase’s report among those on the docket. Bank of America has called the upcoming earnings season a “make or break” one for investors as companies have already flagged issues surrounding supply chain bottlenecks and rising labor costs.

Around the markets, investors poured the most cash into bitcoin-backed products in seven months as the cryptocurrency rallied past $50,000 last week, according to CoinShares.

The state of Alaska, one of the surprise winners from the GameStop short squeeze in January, cashed out most of its profit from its bet on the video-game retailer last quarter.

Gold rose 0.3% to $1,758.87 per ounce.

Oil prices were mixed. West Texas Intermediate crude tacked on 0.1% at $80.57 per barrel. Brent oil, the international benchmark, turned lower, down 0.2% to $83.46.

Bitcoin fell 2.9% to $55,698.24.

Read the original article on Business Insider

US stocks edge higher as investors assess economic growth and inflation risks

Two traders work on the floor of the New York Stock Exchange
Traders Aaron Ford, left, and John Panin work on the floor of the New York Stock Exchange.

  • Stocks moved modestly higher Tuesday after growth and inflation concerns sparked a retreat Monday.
  • The IMF trimmed its 2021 growth outlook, citing broken supply chains and continued pandemic stress.
  • Investors are heading into a “make or break” earnings season, says Bank of America.

US stocks gained modestly Tuesday following a selloff in the previous session but investors remain on alert for developments that highlight concerns about slowing economic growth and a run-up in inflation.

All three of Wall Street’s main benchmarks rose after Monday’s slide that brought the Dow industrials down by 250 points. The indexes clung to small gains Tuesday as the International Monetary Fund reduced its 2021 global growth forecast to 5.9% from 6% as advanced economies grapple in part with supply disruption.

The IMF’s lower outlook arrived as investors prepare for the third-quarter earnings season to kick off, with JPMorgan & Chase’s report due Wednesday. As earnings start to roll in, US market-based inflation expectations are near their highest since the beginning of the subprime crisis in 2008.

Here’s where US indexes stood at 9:30 a.m. on Tuesday:

Bank of America has called the upcoming earnings season a “make or break” one for investors as companies have already flagged issues surrounding supply chain bottlenecks and rising labor costs.

“As we head into earnings season and expect to hear endless commentary about supply chain disruptions, inflationary pressures, and labor shortages, there were some encouraging comments on the subject over the last 24 hours,” said Bespoke Investors Group, on Tuesday.

“For starters, JP Morgan CEO Jamie Dimon said he feels as though supply chain issues won’t be a problem “next year at all.” Both Intel and Samsung have also said they expect their plants in Ho Chi Minh city to resume full operations by the end of November, said Bespoke.

Around the markets, investors poured the most cash into bitcoin-backed products in seven months as the cryptocurrency rallied past $50,000 last week, according to CoinShares.

The state of Alaska, one of the surprise winners from the GameStop short squeeze in January, cashed out most of its profit from its bet on the video-game retailer last quarter.

Gold rose 0.5% to $1,762.62 per ounce.

Oil prices rose. West Texas Intermediate crude picked up 0.3% to $80.75 per barrel. Brent oil, oil’s international benchmark, edged up 0.1% to $83.76.

Bitcoin fell 0.8% to $56,926.35.

Read the original article on Business Insider

US stocks fall as higher energy prices collide with lowered growth forecasts

Trader NYSE
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 9, 2020. REUTERS/Bryan R Smith

  • US stocks closed lower on Monday as fears of rising oil prices and slower growth hit investors.
  • Rising prices and slower growth are the prime ingredients of stagflation, which has historically been a poor environment for stock returns.
  • Since 1960, periods of rising inflation and weak GDP growth led to a median S&P 500 quarterly return of -2.1%, according to Goldman Sachs.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks closed lower on Monday, erasing early morning gains as investors grapple with a continued rise in inflationary pressures and the outlook for slower economic growth.

Energy prices continued their rise, with oil rising to a seven-year high above $80 per barrel as an ongoing supply crunch overseas helps boost prices for both oil and natural gas.

Goldman Sachs cut its US GDP forecast for the third month in a row due to an ongoing economic drag from the COVID-19 delta variant and the global semiconductor crunch.

Rising prices and slower economic growth are the necessary ingredients for stagflation, which has historically led to a weak median quarterly S&P 500 return of -2.1%, according to Goldman.

Here’s where US indexes stood at the 4:00 p.m. ET close on Monday:

Crypto mining manufacturer Bitmain said it will stop shipping its equipment to China following the government’s crackdown on cryptocurrency mining.

Ether co-founder Vitalik Buterin said “shame on bitcoin maximalists” who support El Salvador’s president in forcing businesses to accept the cryptocurrency.

JPMorgan CEO Jamie Dimon called bitcoin “worthless” at a conference on Monday and questioned its 21 million fixed supply.

SoFi surged as much as 14% after Morgan Stanley initiated the fintech company with an “overweight” rating and said the stock could surge 54% from Friday’s close.

Wedbush reiterated its bullish view on cybersecurity provider Palo Alto Networks, arguing the stock could rise 22% from current levels as it sees increased cyber security spending by the government.

Bank of America said Starbucks is poised to surge 21% as its loyalty rewards program drives growth and protects the coffee retailer from competition.

West Texas Intermediate crude oil rose as much as 1.85%, to $80.82 per barrel. Brent crude, oil’s international benchmark, jumped 1.61%, to $83.72 per barrel.

Gold fell as much as 0.14%, to $1,754.90 per ounce.

Read the original article on Business Insider

US stocks mixed as surging oil and talk of stagflation worry investors

NYSE Trader
  • US stocks were mostly lower on Monday as fears of rising oil prices and slower GDP growth hit investors.
  • Rising prices and slower growth are the prime ingredients of stagflation, which has historically been a poor environment for stock returns.
  • Since 1960, periods of rising inflation and weak GDP growth led to a median S&P 500 quarterly return of -2.1%, according to Goldman Sachs.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks were mostly lower in early Monday trading as investors grapple with a continued rise in inflationary pressures and the outlook for slower economic growth.

Energy prices continued their rise on Monday, with oil well over $80 per barrel as an ongoing supply crunch overseas helps boost prices for both oil and natural gas.

Goldman Sachs cut its US GDP forecast for the third month in a row due to an ongoing economic drag from the COVID-19 delta variant and the global semiconductor crunch.

Rising prices and slower economic growth are the necessary ingredients for stagflation, which has historically led to a weak median quarterly S&P 500 return of -2.1%, according to Goldman.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Monday:

Crypto mining manufacturer Bitmain said it will stop shipping its equipment to China following the government’s crackdown on cryptocurrency mining.

Ether co-founder Vitalik Buterin said “shame on bitcoin maximalists” who support El Salvador’s president in forcing businesses to accept the cryptocurrency.

Wedbush reiterated its bullish view on cybersecurity provider Palo Alto Networks, arguing the stock could rise 22% from current levels as it sees increased cyber security spending by the government.

West Texas Intermediate crude oil rose as much as 1.85%, to $80.82 per barrel. Brent crude, oil’s international benchmark, jumped 1.61%, to $83.72 per barrel.

Gold fell as much as 0.14%, to $1,754.90 per ounce.

Read the original article on Business Insider

US stocks fall as interest rates rise and traders nervously eye global energy crunch

trader chart nyse
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 17, 2019.


US stocks traded lower on Wednesday, giving up much of Tuesday’s gains as interest rates jumped higher amid an ongoing surge in energy prices.

The 10-year US Treasury yield hit a four-month high of 1.57% early Tuesday morning before falling back to around 1.52%. That move comes amid the ongoing uncertainty of a debt ceiling raise that Congress needs to enact before the Treasury Department runs out of money on October 18.

Treasury Secretary Janet Yellen has warned that failure to raise the debt ceiling in time would likely result in a surge in interest rates, which would raise borrowing costs and hurt the economy.

Meanwhile, energy prices continue to rise, both for oil and natural gas, as a surge in demand and lack of supply in Europe contributes to soaring costs.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Wednesday:

SEC Chairman Gary Gensler said that his agency wouldn’t impose a cryptocurrency ban like China has, but added that Congress could. Meanwhile, SEC Commissioner Hester Peirce said it’s a shame regulators aren’t “taking up the mantle” to provide rule on digital currencies.

ARK Invest’s flagship ETF has sold nearly its entire position in Nintendo, ahead of an expected OLED screen update for its popular Switch videogame system.

The gains for Shiba Inu coin keep rolling in after an Elon Musk tweet helped spark a rally in the cryptocurrency. The coin is up more than 220% in the past week.

Charlie Munger’s Daily Journal Company has nearly doubled its stake in Chinese e-commerce giant Alibaba. The buys come amid a sharp decline in the stock as China continues to impose a regulatory crackdown against big business.

West Texas Intermediate crude oil fell as much as 1.03%, to $78.12 per barrel. Brent crude, oil’s international benchmark, fell 0.99%, to $81.74 per barrel.

Gold fell as much as 0.15%, to $1,758.20 per ounce.

Read the original article on Business Insider