Tesla, Rivian, Paysafe Stock Active, Disney pulls down
US stocks traded mixed on Thursday, as Treasury yields held steady higher overnight and the dollar hit a sixteen-month high against its global peers as investors scrutinized the impact of the fastest reading of US inflation in over 30 years.
The October CPI was set at 6.2% by the Bureau of Labor Statistics, a 1990 high that not only beat Street’s forecast, but also suggested the Federal Reserve may need to change its course on the reduction and rate hikes if the price pressures do not ease. early next year.
Yet with corporate earnings continuing to impress, with the all-important services portion of the economy operating at an all-time high, and a new infrastructure stimulus package having overtaken President Joe Biden’s office, investors appear content with the results. drive up stock prices before the start. exchanges Thursday.
âThe Fed is already on track to reduce its bond purchases and this is something it may need to step up, as raising rates sooner rather than later might be the best solution if it is to prevent the ‘inflation to take hold,’ said the independent adviser. Alliance IT Director Chris Zaccarelli.
âWe have already positioned ourselves for higher inflation in our investments by using energy companies and better quality companies – those with strong balance sheets, a competitive divide around their businesses and pricing power – to reduce the impact of rising prices. have on profit margins. “
Sentiment, particularly in Asia, was also bolstered by reports that Evergrande Group, the indebted China-based real estate developer, raised payments of around $ 150 million to avoid default on a series of offshore tickets Wednesday night.
The Dow Jones Industrial Average fell 55 points at the opening hour of trading, as an 8.6% drop for Disney DIS took 95 points off the 30-stock average.
The S&P 500 gained 12 points while the tech-focused Nasdaq Composite rose 115 points even as benchmark 10-year Treasury yields hold 1.57% after the overnight surge last. Bond markets will remain closed Thursday as part of the Veterans Day celebration.
The dollar index, which tracks the greenback against a basket of six global currencies, rose 0.15% during the session to 94.974, just off the sixteen-month high of $ 95.011 that it hit earlier in the session following higher than expected October inflation yesterday. reading.
The surging dollar capped gains in oil prices, which were also hit by concerns that faster inflation and multi-year gasoline price highs could force President Joe Biden to order the release of crude from the strategic oil reserve.
WTI futures for December delivery were 60 cents lower from last night’s close at $ 80.73 a barrel while Brent contracts for January, the global benchmark, slipped 47 cents to 82, $ 17 per barrel.
Paysafe Limited (PSFE) – Get the PAYSAFE LTD report shares fell nearly 36% after online payments processing platform backed by Blackstone Group and CVC Capital Partners reported weaker than expected third quarter earnings and lowered its profit guidance for the year whole.
You’re here (TSLA) – Get the Tesla Inc report Stocks were also active in early exchanges, dropping 0.05% following Securities and Exchange Commission filings that revealed founder and CEO Elon Musk had sold around $ 5 billion in the manufacturer’s stock. clean energy automobile in recent days.
Another manufacturer of electric vehicles, Rivian Automotive (RIVN) – Get the RIVIAN AUTOMOTIVE, INC. Report., extended its gains with a jump of 11.2% after its debut on the Nasdaq which marked the biggest IPO of the year and brought the electric carmaker’s value to more than $ 100 billion.
Walt Disney shares, meanwhile, fell 8.6% after the entertainment and media icon posted weaker-than-expected fourth-quarter earnings and disappointing additions to its Disney + streaming service.
Beyond meat (PARND) – Get Beyond Meat Report, Inc. fell 17.2% after the plant-based food producer posted disappointing third-quarter earnings and mixed sales prospects.
Honest Cie. (HNST) – Get the Honest Co. , the housekeeping and wellness company founded by Jessica Alba, gained more than 8.5% after posting lower-than-expected third-quarter profits but higher sales than Wall Street estimates.
In overseas markets, the European Stoxx 600 was up 0.12% at midday in Frankfurt, while the Chinese bluechip CSI 300 closed up 1.6% following reports of the payment of Evergrande’s debt. Improving sentiment and a weaker yen helped the Nikkei 225 to close 0.6% higher in Tokyo at 29,277.86 points.