The Dow Jones Industrial Average soared over a 1,201 points after October’s inflation data
eased slightly, a sign that could suggest rising prices are peaking. In response, the 10-year Treasury yield fell below 4% in the sharpest reversal since March 2009.
Salesforce.com, Home Depot and Nike topped the leader board, while Amgen and Nike lagged.
Nasdaq Composite Index.
The Nasdaq Composite surged over 7% the best performance ever following the CPI data.
LegalZoom.com beats Wall Street expectations
LegalZoom.com is higher in after-hours trading. The online platform for legal and compliance solutions topped Wall Street revenue and profit expectations.
Third quarter revenue rose 4% to $154.4 million, higher than the estimate of $149.9 million. Subscription revenue was $91.4 million, compared to $73.3 million in 2021, an increase of 25% year-over-year.
The net loss for the three months ended September 30 was $10.1 million for the quarter, or 7% of revenue, compared to $39.7 million or 27% of revenue in 2021.
The basic and diluted non-GAAP net income per share was 5 cents for the quarter in 2022, better than the estimate of 4 cents.
Musk tells Twitter staff: Bankruptcy isn’t out of the question — report
Twitter owner Elon Musk told employees on Thursday that he is not sure how much run rate the company has and that bankruptcy is not out of the question, the Managing Editor of tech newsletter Platformer tweeted.
Musk is participating in an all-hands meeting with Twitter employees, a source told Reuters.
Twitter did not immediately reply to an emailed request for comment from Reuters.
TWITTER TURMOIL CONTINUES UNDER MUSK, TRIGGERING FTC WARNING
Homebuilder Beazer Homes tops Wall Street estimates
Beazer Homes Usa Inc.
Beazer Homes is higher in extended trading. The homebuilder beat Wall Street revenue and profit estimates.
Third quarter revenue rose to $827.67 million, up from $590.94 million a year ago.
Net income for the three months ended September 30 was $86.82 million, up from $48.36 million.
Diluted income per share came in at $2.82, topping the estimate of $2.06.
Chair and CEO Allan Merrill said the company is responding to a challenging homebuilding environment by increasing incentives and reduced base prices in most of communities.
“In the quarters ahead we will continue to adjust the included features, size, and pricing of our homes to compete for sales. At the same time, we expect to benefit from lower construction costs and shorter cycle times, as lower new home construction activity relieves some of the commodity, building product and labor constraints that have contributed to a significant increase in the cost of new homes,” Merrill said.
Vaping company Juul cuts 400 jobs amid growing setbacks
Embattled vaping company Juul Labs announced hundreds of layoffs Thursday as the company weathers lawsuits, government bans and increasing competition for its electronic cigarettes.
Juul said it has obtained new financing to stay in business and continue operations, which includes challenging plans by the Food and Drug Administration to ban its products.
The layoffs include 400 staffers and are part of a cost-saving plan to immediately cut Juul’s operating budget by 30% to 40%, according to a person familiar with the plan who requested anonymity to discuss its details. The new cash infusion came from two early Juul investors: Nicholas Pritzker, head of Hyatt Hotels, and Riaz Valani, a private equity specialist based in San Francisco, according to the same person.
The Wall Street Journal first reported the news Thursday morning.
White House: ‘Cryptocurrencies risk harming everyday Americans’
The White House says it’s closely monitoring the chaos in cryptocurrencies.
Press secretary Karine Jean-Pierre said cryptocurrencies are something the Biden Administration sees as an important issue.
“The most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrencies is indeed needed,” Jean-Pierre said.
“The administration has consistently maintained that without proper oversight, cryptocurrencies risk harming everyday Americans.”
Cryptocurrencies fell into turmoil after crypto exchange Binance backed out of a deal to buy rival FTX.
FTX is looking to raise $9.4 billion, Reuters reported.
DC AG sues Washington Commanders, Dan Snyder, NFL over ‘toxic workplace culture’
Washington, D.C. attorney general Karl Racine announced a new lawsuit
against the Washington Commanders, team owner Dan Snyder, the National Football League, and NFL Commissioner Roger Goodell.
The complaint accuses the parties of colluding to deceive District residents—Commanders’ core fans—about an investigation into toxic workplace culture and allegations of sexual assault to maintain a strong fanbase and increase profits.
The complaint seeks financial penalties and a court order forcing the NFL to release the findings from a 10-month independent investigation into the Commanders’ workplace culture, to give the fans and the public the truth and information they expected.
Keurig Dr Pepper CEO out over alleged code of conduct violations
The CEO of Keurig Dr Pepper has resigned due to violations of the company’s code of conduct. The alleged transgressions were unrelated to strategy, operations or financial reporting, the company said.
Ozan Dokmecioglu was replaced by Bob Gamgort, the Keurig Dr Pepper’s current executive chair and former CEO.
Gamgort will continue his role as chair.Dokmecioglu was promoted to CEO from CFO, effective July 29.
AstraZeneca no longer pursuing US approval for COVID vaccine
AstraZeneca is no longer pursuing U.S. approval of its COVID-19 vaccine, Chief Executive Pascal Soriot said in a media call on Thursday.
Demand for vaccines in the country is declining and the market is well served by the mRNA shots, he said.
Facebook dials back the freebies
Facebook parent Meta is curbing a slew of company perks after CEO Mark Zuckerberg announced 11,000 employees would lose their jobs.
Meta Platforms Inc.
Nike’s Phil Knight says Kyrie relationship likely finished
Kyrie Irving’s comments may have cost the Brooklyn Net’s all-star has partnership with Nike.
Nike co-founder Phil Knight told CNBC: “I would doubt that we go back. But I don’t know for sure.”
Irving signed with Nike in 2011 and has had a signature line with the athletic apparel maker since 2014. His annual endorsement deal is said to be worth around $11 million.
Department store chain Dillard’s tops Wall Street expectations
Dillard’s is higher in Thursday trading. The department store operator topped Wall Street revenue and profit estimates.
Third quarter revenue rose 4% to $1.57 billion from a year ago; analysts expected $1.48 billion. Comparable store sales increased 8%.
Net income for the three months ended October 29 was $187.9 million, down from $197.3 million.
Quarterly adjusted earnings of $10.96 per share for the quarter ended in October. The mean expectation of four analysts for the quarter was for earnings of $5.86 per share.
Dillard’s Chief Executive Officer William T. Dillard, II stated, “Inventory control remains a priority as we have seen its powerful effects on our business. To date this year, our net income is up 11% over last year’s strong performance and earnings per share is up 32%.”
Reuters contributed to this report.
FTX’s Sam Bankman-Fried in crisis mode
Billionaire Sam Bankman-Fried is fighting for survival as his FTX cryptocurrency exchange spirals.
Airlines make changes as Tropical Storm Nicole disrupts air travel
Airlines are scrambling to reroute passengers as Tropical Storm Nicole disrupts flights and closes airports.
More than 1,200 flights in, out of and across the United States were canceled as of 11:30 a.m. ET on Thursday as the storm brought strong winds and heavy rain, according to data from flight-tracking website FlightAware.
Over 1,000 flights have been delayed.
Tether freezes $46M FTX wallet followiing law-enforcement request — report
Tether has reportedly frozen $46 million of USDT tokens, CoinDesk reported. The move came at the request of law enforcement.
A Tether executive told CoinDesk the stablecoin issuer was receiving requests by law enforcement to temporarily freeze assets.
Tron block explorer Tronscan said FTX owns the frozen wallet, the report said.
FTX reopened withdrawals Thursday, CoinDesk reported, citing on-chain data provided by analytics firm Nansen.
The company’s website, however, still displayed an earlier message that said it was unable to process withdrawals.
FTX Chief Executive Sam Bankman-Fried has launched an urgent push to raise funds to save his firm as the crypto exchange looks to plug a reported $8 billion hole in its finances, according to tweets and a memo to employees.
A spokesperson for the company did not immediately respond to a Reuters request for comment.
Reuters contributed to this report.
Theme park operator Six Flags agrees to allow larger investment by H Partners
Six Flags Entertainment is higher in Thursday trading. The world’s largest regional theme park company agreed to permit H Partners to increase its beneficial ownership of Six Flags common stock to 19.9%, up from a cap of 14.9% in the original agreement, a regulatory filing said.
Separately, the largest operator of waterparks in North America reported third-quarter earnings of $115.8 million.
The Arlington, Texas-based company said it had net income of $1.39 per share.
The results fell short of Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.65 per share.
The amusement park operator posted revenue of $504.8 million in the period, which also missed Street forecasts. Seven analysts surveyed by Zacks expected $565.4 million.
The Associated Press contributed to this report.
Mortgage rates are back above 7%
The average long-term U.S. mortgage rate returned to the 20-year highs of two weeks ago when rates breached 7% for the first time since 2002.
Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate rose to 7.08% from 6.95% last week. A year ago the average rate was 2.98%.
The rate for a 15-year mortgage, popular with those refinancing their homes, climbed to 6.38% from 6.29% last week. It was 2.27% one year ago.
“As the housing market adjusts to rapidly tightening monetary policy, mortgage rates again surpassed seven percent,” said Sam Khater, Freddie Mac’s Chief Economist. “The housing market is the most interest-rate sensitive segment of the economy, and the impact rates have on homebuyers continues to evolve. Home sales have declined significantly and, as we approach year-end, they are not expected to improve.”
The latest numbers come after the Labor Department reported Thursday that the consumer inflation rose 0.4% in October from the previous month. Prices climbed 7.7% on an annual basis.
INFLATION HOLDS GRIP ON US ECONOMY IN OCTOBER AS PRICES REMAIN STUBBORNLY HIGH
The Associated Press contributed to this report.
Elon Musk to Twitter workers…
Elon Musk tells Twitter workers the work from home trend may be coming to an end, according to reports.
Inflation for October at the consumer level eased a bit but remains near a 40-year high.
Cryptocurrencies stabilize after FTX deal turmoil
Cryptocurrency prices stabilized Thursday morning after a tumultuous couple of days sparked by news surrounding the collapse of a deal involving FTX Trading.
Crypto exchange Binance announced it was pulling out of a deal to purchase the failing rival.
The turmoil sent cryptocurrencies reeling.
The price of bitcoin plunged more than 15% on Wednesday to $15,840, according to CoinDesk. The cryptocurrency fell for four straight days, dropping more than 26% during that time.
Bitcoin was trading around $16,000 Thursday morning.
Ethereum was trading around $1,200, after dropping more than 15% in the past week.
Dogecoin was trading around 8 cents, after losing 37% in the past week.
Gasoline price slips slightly
The nationwide price for a gallon of gasoline slipped Thursday to $3.803, according to AAA.
The average price of a gallon of gasoline on Wednesday was $3.805.
One week ago, a gallon of gasoline cost $3.778. A month ago, that same gallon of gasoline cost $3.919.
Gas hit an all-time high of $5.016 on June 14.
Diesel gained to $5.362.
Oil whipsaws ahead of inflation report
Oil prices bounced around Thursday, following three days of declines as the impact of renewed COVID curbs in China weighed and traders await U.S. inflation data that may give direction on further interest rate increases.
U.S. West Texas Intermediate (WTI) crude futures were trading around $85.00 a barrel.
Brent crude futures traded around $92.00 a barrel.
WTI is down more than 7% this week.
Brent prices have dropped more than 6%.
Consumer price index (CPI) data for the United States will be released later on Thursday that is expected to show a slowdown in the inflation rate for both the monthly and yearly core numbers.
That may have an impact on the size of futures interest rate hikes by the Federal Reserve.
Oil prices were also under pressure after a big build in U.S. crude inventories reported on Wednesday.