Tag: sales

Dow Jones Rallies On Pfizer Vaccine News; Tesla Stock Rises After China Sales

The Dow Jones Industrial Average rallied 100 points early Wednesday, as Pfizer provided an update on the effectiveness of its vaccine vs. the omicron Covid-19 variant. Apple hit new highs, while Tesla stock dropped after reports of strong electric-vehicle sales in China.




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Among the Dow Jones leaders, Apple (AAPL) gained 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday, while Microsoft (MSFT) fell 0.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in today’s stock market. Nike (NKE) also ticked 0.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} lower, still below a buy point despite Tuesday’s strong gain.

EV leader Tesla (TSLA) shed early gains and dropped 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday. EV peer Rivian (RIVN) was down 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, while Lucid Group (LCID) moved down around 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) were mixed after Wednesday’s open.

Among the top stocks to buy and watch, Endeavor Group (EDR), Louisiana-Pacific (LPX), NXP Semiconductors (NXPI) and Zim Integrated Shipping (ZIM) are in or near new buy zones. Despite the recent stock market strength, investors should still be developing watchlists, and avoid making new purchases until the market’s current rally attempt stages a follow-through day.

Microsoft and Tesla are IBD Leaderboard stocks. Louisiana-Pacific was Tuesday’s IBD 50 Stocks To Watch pick. NXP was spotlighted in this week’s Stocks Near A Buy Zone story. Endeavor was featured in last week’s IPO Leaders story. Zim is an IBD SwingTrader stock.

Dow Jones Today: Pfizer Vaccine News

After the stock market open Wednesday, the Dow Jones Industrial Average pared gains to 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, as Honeywell International (HON) dragged on the index following a Bank of America downgrade. The S&P 500 rose 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, while the tech-heavy Nasdaq composite reversed higher after early losses.

Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday, while the SPDR S&P 500 ETF (SPY) gained 0.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Elsewhere, the 10-year Treasury yield traded down to around 1.46{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday morning, following its close at 1.48{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Tuesday after two straight days of strong gains. Crude oil prices were lower, with West Texas Intermediate down about 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and on pace to snap a two-day advance.

Early Wednesday, Pfizer (PFE) and vaccine partner BioNTech (BNTX) said a third dose of their Covid-19 vaccine neutralized the omicron variant in lab tests. They also reported that the two-dose regimen was significantly less effective vs. the new variant than prior strains of the virus. Pfizer shares and BNTX shares both traded higher after the open.

Stock Market ETF Strategy And How To Invest

Stock Market Rally Attempt

The stock market posted strong gains Tuesday, as the major stock indexes continued their rebounds from last week’s weakness. Tuesday marked Day 2 of a new rally attempt on the Nasdaq. That is a positive sign, but means the market correction isn’t over yet — one or two days doesn’t make a trend. Starting at Day 4, you are looking for the index to rise sharply in higher volume than the prior day. That would indicate a follow-through day, and signal the start of a potential uptrend.

Now, while the market is still correcting, is a good time to search for stocks that could become the next uptrend’s leaders. One tool helpful in such a search is the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.

After Tuesday’s session, The Big Picture commented: “With two solid gains this week, much of the stock market’s damage from the previous couple of weeks is patched up. The Nasdaq sank almost 8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from its Nov. 22 peak and is now 3.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from new highs.”

The stock market outlook was downgraded on Friday, so it’s an important time to read IBD’s The Big Picture.

Five Best Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: Apple, Nike

Apple shares hit new highs Tuesday, rallying more than 3.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The stock is getting further extended past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. The 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} buy zone topped out at 160.93. Apple shares moved up 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday, setting another all-time high.

Retail leader Nike remains about 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} below a cup base’s 174.48 buy point after Tuesday’s 1.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} gain. Shares fell 0.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday.

Stock Market Earnings: Toll Brothers

Photronics (PLAB), Thor Industries (THO) and Lovesac (LOVE) were all making strong morning moves after reporting earnings early Wednesday.

Toll Brothers (TOL) reported better-than-expected fiscal fourth-quarter earnings and sales late Tuesday. Shares dropped more than 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday. TOL stock closed Tuesday in buy range past a 68.98 buy point, but is already extended above a 67.43 handle entry. That 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} buy area topped out at 70.80.

Elsewhere, Stitch Fix (SFIX) dived 27{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday after cutting its revenue outlook for the fiscal year due to ongoing supply chain pressures. Shares closed Tuesday about 78{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off their 52-week high.

Stocks To Buy And Watch: Endeavor, Louisiana-Pacific, NXP, Zim

IPO Leader and Ultimate Fighting Championship owner Endeavor Group is trying to break out past a cup-with-handle base with a 31.80 buy point, according to IBD MarketSmith chart analysis. Shares are about 3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} below the new entry after Tuesday’s breakout attempt. The stock was down about 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday.

The stock’s relative strength line is making strong upward progress and is at its highest level since early October. The RS line measures a stock’s price performance vs. the broad market. A strengthening RS line during periods of market weakness indicates leadership potential.

Louisiana-Pacific — Tuesday’s IBD Stocks To Watch pick — is breaking out past a 73.76 buy point in a cup with handle amid Tuesday’s 3.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} rise. Shares are in the 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} buy range that tops out at 77.45. LPX stock moved up 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday.

Chip leader NXP Semiconductors is testing a 227.60 buy point in a cup-with-handle base following Tuesday’s 6.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} advance. The buy area goes up to 238.98. Shares were down over 6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday after UBS started coverage with a sell rating and a 170 price target.

IBD SwingTrader stock Zim Integrated Shipping is rapidly approaching a cup with handle’s 60.19 buy point following Tuesday’s 4.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} climb. Shares rallied 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday.

Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live

EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian

Li Auto triggered the 7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}-8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} loss-cutting sell rule below a cup-with-handle base’s 34.93 buy point after Friday’s sharp loss. Shares are fighting to regain their 50-day line after finding support around the long-term 200-day moving average. Shares tacked on 0.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday.

Xpeng Motors triggered the round-trip sell signal from a 48.08 buy point during last week’s decline. Investors should sell the growth stock if it falls back near the buy point after it has made a gain of more than 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Try to sell before all gains are wiped away. XPEV shares ended Tuesday above their 50-day support level. Wait for the stock to form a new base, which would offer a new entry. The stock moved up 0.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday.

Lucid Motors shares threatened to extend a five-day losing streak Wednesday, falling 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base, but huge gains have dwindled.

Hot initial public offering Rivian extended Tuesday’s 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} fall, dropping nearly 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} early Wednesday.

RIVN shares closed Tuesday about 35{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off their post-IPO highs. The decline is a potential positive for investors remaining disciplined and waiting for an IPO base to form before considering a purchase. The recent weakness is the start of Rivian’s first base formation, and Monday’s strong gain was a step in the right direction.

Tesla Stock

Tesla stock turned down 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday, after Tuesday’s 4.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} gain as it rebounds from a key support level. Early Wednesday, the China Passenger Car Association reported that Tesla Shanghai sold 52,859 made-in-China Model 3 sedans and Model Y crossover SUVs in November, including 21,127 that were exported.

Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Tuesday about 15{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off its 52-week high.

TSLA shares remain sharply above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. The chart also showed an alternate entry at 900.50. Tesla shares are likely forming a new base, but there is no new buy point yet.

Dow Jones Leaders: Microsoft

Among Dow Jones stocks, software giant Microsoft moved down 0.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday, as it fights to continue its rebound from the 50-day line.

On Oct. 18, Microsoft stock broke out past a flat base’s 305.94 buy point. The 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} buy zone topped out at 321.24, so the stock is extended.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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November U.S. auto sales: Toyota, Honda, Hyundai, Kia sales fall 4th straight month; Ford rises 5.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Supply-chain disruptions, driven by the ongoing shortage of microchips that has dented new-vehicle stockpiles, undercut U.S. sales at Toyota Motor Corp., American Honda, Hyundai and Kia for the fourth straight month in November.

But there was another clear sign that the U.S. market is bottoming out. The seasonally adjusted annualized rate of sales (or SAAR), came in at 13.1 million units — unchanged from October, according to Motor Intelligence. The SAAR was 16.1 million a year ago.

Among automakers that reported November results, sales slipped 14 percent, but LMC said overall sales fell 16 percent, which was worse than previous forecasts that called for a drop of 11-12 percent.

For the recent month, volume dropped 25 percent at Toyota Motor, 17 percent at American Honda, 20 percent at Hyundai — its biggest decline of the current slump — and 5.4 percent at Kia last month, the companies said Wednesday.

Deliveries at Subaru skidded for the sixth consecutive month, down 35 percent in November.

Volvo, the last major automaker to report November results, on Friday said deliveries plunged 34 percent to 7,667 units.

Meanwhile, Ford Motor Co. said Thursday it was the top-selling automaker in the U.S. for a third consecutive month, posting a 5.8 percent increase in November light-vehicle sales that contrasted with declines for nearly all other companies that reported monthly results.

Ford’s utility vehicle sales jumped 21 percent from a year ago, and F-Series pickup sales rose 15 percent despite the ongoing microchip shortage that has thinned dealership inventories. The automaker said sales of its electrified vehicles grew at triple the rate of those from other manufacturers.

Ford said its total light-vehicle sales of 157,417 was enough to beat all other automakers, including General Motors and others that report on a quarterly basis, based on numbers those companies provide privately to analysts and industry data trackers. The last time Ford had such a streak at No. 1 was 1974, company officials said.

Toyota Motor, which has overtaken longtime U.S. market leader General Motors this year, has been forced to cut output in recent months because of tight chip supplies. It has now posted declines of 22 percent or more three consecutive months. Sales last month dropped 24 percent at the Toyota brand and 32 percent at Lexus.

The Toyota brand was hampered by a 47 percent drop in November car deliveries, with Corolla sales skidding 63 percent to 8,906 and Camry off 34 percent to 19,261 units. The brand’s top-selling light trucks also saw double-digit declines: RAV4, off 14 percent; Highlander, down 13 percent; and Tacoma, off 21 percent.

Toyota said it had 116,638 cars and light trucks in inventory — or an 18-day supply — at the end of November, down 67 percent from 349,639 units a year earlier.

Honda said volume dropped 17 percent at the Honda division and 21 percent at Acura, with American Honda car volume off 24 percent and light-truck deliveries down 13 percent. Honda Civic sales slid 26 percent and CR-V volume dropped 19 percent.

Hyundai said it ended November with just 17,096 units in stock, down from 19,894 at the end of October and 145,885 at the close of Nov. 2020. Some of the company’s top-sellers posted notable declines last month; Elantra, down 42 percent; Sonata, off 56 percent; Santa Fe, down 24 percent and Kona, off 37 percent.

Hyundai’s fleet shipments also dropped sharply last month — 97 percent, and represented less than 1 percent of overall volume.

Randy Parker, senior vice president for national sales at Hyundai Motor America, said “consumer demand remains exceptionally high” but “lingering availability issues persisted into November.”

At Kia, some of the brand’s key models — led by the Telluride, Seltos, Sportage and Soul — all posted declines. The company said it sold 77 percent of available U.S. inventory in November.

Three of Subaru top U.S. sellers — the Outback, down 19 percent; Crosstrek, off 51 percent and Forester, down 70 percent — suffered significant declines last month, leaving the company on pace to post back-to-back declines in annual U.S. volume for the first time since the 1990s.

Mazda said volume dropped 5.3 percent in November, its third straight decline.

Genesis, helped by an expanding product lineup, continued to rack up major gains, with November volume advancing 435 percent to 5,002 sedans and crossovers. 

General Motors, Stellantis, Nissan Motor Co., Volkswagen Group and the rest of the industry post U.S. sales quarterly.

Analysts had expected a more substantial finish to 2021 fueled by traditional year-end holiday discounts — after volume dropped 14 percent in 2020 at the onset of the pandemic.

The emergence of another COVID-19 variant also threatens to upend the spotty recovery to the extent supply chains and manpower are impacted by new travel and other possible operating restrictions.

Retail inventories remained below 1 million units in November for the fourth straight month, J.D. Power and LMC Automotive said.

“The typical Black Friday sales surge will be difficult to support,” this year, said J.D. Power analyst Thomas King. “The traditional year-end sales push will be somewhat non-traditional.”

Industry sales rose 13 percent through September behind a strong first quarter and a 4.96 percent rise in the second quarter, followed by a 13 percent decline in the third quarter.

Still, November sales are expected to increase slightly from October, rising less than a percent to reach an estimated 1.05 million, Cox Automotive said.

“The market is stuck in low gear,” said Cox Automotive Senior Economist Charlie Chesbrough. “There are potential buyers out there, but many are waiting on the sidelines, put off by limited selection and high prices.”

Even amid tight supplies, some automakers continue to pitch deals to keep consumers and buyers engaged.

Hyundai and Ford last month offered 0 percent financing and waived payments up to 90 days on select models, and BMW dangled up to $2,500 off on select new models through Nov. 30.

Alibaba reports slower sales growth for its Singles Day shopping event.

ImageThe main shopping area during Alibaba's Singles Day shopping festival in Shanghai on Thursday.
Credit…Aly Song/Reuters

The Chinese e-commerce giant Alibaba said $84.5 billion in merchandise was sold on its platforms during the Singles Day shopping festival that ended on Thursday, an 8.5 percent increase over last year and an indication that Beijing’s campaign to tighten regulation of internet companies has not dimmed consumers’ enthusiasm for buying stuff online.

Even so, the growth in sales was down from the 26 percent increase that the company reported in 2020 compared with the year before.

The number Alibaba announces each year after its big retail bonanza is gross merchandise volume, which is meant to represent the total value of orders. There is no standardized way of calculating this metric within the e-commerce industry, so Alibaba has leeway to choose the result it reports.

This year’s figure captured sales from Nov. 1 through Nov. 11. Singles Day was once a 24-hour event, but has ballooned into a multiweek extravaganza. Before last year, Alibaba’s headline number captured sales on Nov. 11 only.

China’s government has moved rapidly over the past year to impose new strictures on giant internet companies, which long grew with little oversight of their business practices. Beijing now wants the tech industry to compete fairly and contribute more to society. In response, Alibaba put a socially conscious spin on this year’s Singles Day, emphasizing eco-friendly products and campaigns to help neglected children and seniors.

Before Thursday, it was not clear that Alibaba would release a final Singles Day sales figure at all this year. When asked about it by The New York Times this week, an Alibaba spokeswoman declined to comment. Last month, Alibaba’s chief marketing officer, Chris Tung, said the company’s focus had shifted from pure sales growth to “sustainable growth.”

Credit…Jon Super/Associated Press

The British economy’s recovery slowed through the summer, delaying its return to its prepandemic size as supply shortages hampered businesses and exports declined.

Gross domestic product grew 1.3 percent in the third quarter, down from 5.5 percent in the previous three months, the Office for National Statistics said on Thursday. The growth was driven by spending on services, especially in hotels, restaurants and entertainment as the last of the major pandemic restrictions were lifted in July and people vacationed in the country. A return to in-person doctor appointments also boosted the growth data.

But the recovery was weaker in other sectors. Retail sales fell as well as car sales because of the global shortage of semiconductors. Supply chain disruptions and bottlenecks have held back growth in Britain and are expected to last longer than previously anticipated. It’s a problem afflicting other countries, including Germany. There have been backups at Britain’s ports and difficulties distributing goods.

The changes to migration and trade because of Brexit, including fewer European Union workers and a stricter customs regime, have exacerbated the supply bottlenecks, according to the Office for Budget Responsibility, which provides independent forecasts for the British government.

Exports fell nearly 2 percent over the previous quarter, partly because of a decline in the export of transport equipment and machinery.

Britain’s “unique Brexit-related issues,” including additional customs paperwork, food safety checks and hurdles to tariff-free trade with the European Union, its biggest trading partner, “no doubt amplify the port and transport challenges,” Kallum Pickering, an economist at Berenberg Bank, wrote in a note to clients.

The slowing momentum in the world’s recovery from the pandemic has led to downgrades of global and British growth forecasts. The Bank of England said last week that the British economy would grow 7 percent this year, reducing its forecast by a quarter percentage point. It cut a whole percentage point off growth for 2022 — to 5 percent — as supply disruptions are expected to weigh on the economy until late in the year and the annual inflation rate is forecast to climb to about 5 percent in the spring.

The Bank of England said it would probably need to raise interest rates in the coming months as prices climbed, but it is waiting for more official data on what has happened in the labor market after the end of the government-sponsored furlough program in September. The central bank said that more than a million jobs were benefiting from the program as it ended and that there might be a small increase in unemployment now that those payments were over. The bank has to balance taming inflation without putting the recovery off course with tighter monetary policy.

As the recovery is expected to continue to slow, the National Institute of Economic and Social Research warned this week that British households will be “painfully squeezed” as prices rise, fiscal stimulus is reduced and tax increases come into force in April. The London institution also said the number of households that can’t afford basic necessities could double because of a cut to a major government benefit program.

Credit…Clodagh Kilcoyne/Reuters

Europe is facing fresh threats to its pandemic recovery as energy prices surge at a “tumultuous pace” and bottlenecks in the supply chain dampen growth and slow production, the European Commission said on Thursday.

In its latest economic forecast, the commission said sporadic pandemic-related lockdowns in some parts of Europe, together with emerging labor shortages, were adding to the disruptions, while inflation has hit a 10-year high.

Europe’s economy rebounded this year from the pandemic faster than expected, and regained prepandemic levels of growth during the summer. Among the 28 countries in the European Union, economic output is now expected to grow 5 percent this year, slightly better than a forecast made a few months ago — an unusually robust rebound after pandemic lockdowns shuttered the economy last year.

Growth will slow to a 4.3 percent pace next year and then decelerate to 2.5 percent in 2023, the commission said.

Europe spent hundreds of billions of euros to keep workers furloughed during national shutdowns, and such programs have helped millions of people stay in their jobs and avoid a surge in unemployment, the report said. About 1.5 million jobs were created from April to June, and nearly as many workers exited job retention schemes.

As in the United States and Britain, however, labor shortages have been plaguing industries that were quick to reopen, especially restaurants and parts of the retail sector. At the same time, there are still large numbers of people who are jobless and people who are available to work but not actively looking, the report said.

While the economic rebound has been swift, the surge in inflation is likely to weigh on the finances of Europe’s households and businesses. A jump in natural gas prices has led to higher electricity bills. Altogether, the price of goods, services, energy and food jumped 3.4 percent in September from a year earlier, and even without volatile food and energy prices, the inflation rate is the highest in a decade. Inflation is estimated to have climbed to 4.1 percent in October.

But prices have jumped because of postpandemic reopenings, the commission noted, so such pressures are expected to be largely fade over the next year, the commission said.

Credit…Aly Song/Reuters

Elon Musk, the chief executive of Tesla, disclosed on Wednesday that he had sold about $5 billion worth of Tesla shares, in part to cover his tax obligations after exercising options on a large tranche of stock.

Mr. Musk sold about 4.5 million shares between Monday and Wednesday, according to filings with the Securities and Exchange Commission. Tesla’s stock closed trading on Wednesday at $1,067.95, which would value the shares at about $4.8 billion, but some were sold for slightly higher prices.

In the filings, Mr. Musk said he had sold about a million of the shares “solely” to cover taxes on 2,154,572 shares he picked up at $6.24 each. Those shares he acquired, for a total of $13.4 million, were instantly worth about $2.3 billion. Later Wednesday, he disclosed the sale of an additional 3.6 million shares, though he did not provide a reason for those divestments.

Mr. Musk still owns nearly 17 percent of Tesla’s stock, shares worth about $180 billion. Tesla recently passed $1 trillion in market valuation.

Over the weekend, Mr. Musk posted a poll to Twitter asking his followers whether he should sell 10 percent of his stock, referring to a political debate over whether the wealthiest Americans should be taxed according to their wealth rather than their income. He said he would abide by whatever respondents chose, and about 58 percent said to sell.

Regardless of the poll, the disclosures indicated that Mr. Musk had put a plan in place in September to sell shares when buying options. Mr. Musk holds more than 20 million stock options, worth nearly $30 billion, that expire in August. Many of those options are unlikely to qualify for preferential tax treatment, meaning he could owe billions of dollars in taxes if he exercises all of them.

Tesla’s stock slid 16 percent in the two days of trading after his Twitter post, though it gained 4.3 percent on Wednesday before Mr. Musk disclosed his trades. Tesla’s shares were up in aftermarket trading following his disclosures.

Stephen Gandel contributed reporting.

Correction: 

An earlier version of this article misstated the day that Elon Musk sold $1.1 billion in Tesla shares to cover tax obligations. It was Monday, not Wednesday. (He sold an additional $3.9 billion in shares this week unrelated to the exercise of his stock options.)

  • China Evergrande has made interest payments totaling nearly $150 million on three bonds that had grace periods set to expire on Wednesday, a spokeswoman for the German clearing house Clearstream said. The payments, which were made as a 30-day grace period on the coupon was set to expire, mean Evergrande has avoided default for now.

  • The Justice Department and the Securities and Exchange Commission have opened investigations into the embattled Silicon Valley company Ozy Media, according to people with knowledge of the matter.

    Federal prosecutors with the Eastern District of New York have in recent weeks been in contact with at least one company that had dealings with Ozy, two people with knowledge of the matter said. In the parallel civil inquiry, S.E.C. investigators have contacted at least two companies that discussed investing in Ozy, two people with knowledge of the commission’s effort said.

    The precise focus of the investigations could not be determined. A lawsuit filed last month accused Ozy of misleading potential investors. Companies’ statements to investors are often examined in S.E.C. investigations. READ MORE →

  • On Wednesday, Disney said its flagship streaming service had added 2.1 million subscriptions in the recent quarter, sharply fewer than analysts polled by FactSet had forecast. After a dazzling introduction in late 2019, Disney+ has encountered numerous headwinds, including a pandemic-related shortage of new shows, an increasingly competitive streaming environment, the delay of Indian Premier League cricket games and difficulties rolling out in Latin America. Slower growth is a concern because it makes it harder for Disney+ to achieve the 230 million to 260 million paid subscribers promised by the company by the end of the 2024 fiscal year. READ MORE →

Video

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The animated version of the new Meta logo released by the company.

A sleek animation online shows logos of all Facebook’s apps and products fusing together to form a shimmering vision of the future: a two-tone blue infinity symbol next to the word “Meta.”

To design experts, the change by a scandal-plagued company was the latest example of efforts by corporate America to create brands that are less unique and ultimately less offensive. It was also a reflection of the growing challenge for corporate identities to exist in many different sizes and digital settings at once, from V.R. headsets to smartwatches — a challenge that is magnified for Meta as it tries to establish an identity for something that largely doesn’t exist yet.

“It checks a lot of boxes,” said Michael Evamy, the author of “Logo,” an anthology of corporate brands and logos. “It’s very simple. It’s very visible at all scales. It’s blue.” (Blue, he noted, is historically a color associated with safety and trustworthiness. The infinity symbol, devoid of corners and jagged edges, can be seen as nonthreatening.) READ THE ARTICLE →

Veoneer Q3 Net Sales Up 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} To US$391m – Just Auto

Veoneer has recorded third-quarter net sales up 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to US$391m.

Business Highlights:

  • Entered into a definitive merger agreement, under which SSW and Qualcomm will acquire Veoneer, terminated merger agreement with Magna International
  • Organic Sales growth outperformed the global LVP by ~23pp during Q3, 21
  • Semiconductor supply chain shortages continue to create industry production, delivery and cost challenges
  • Temporary inventory build-up negatively impacted cash flow, expect the effect to reverse in fourth quarter
  • ADAS and AD software unit Arriver performed first public demonstration running on the Snapdragon Ride platform, at IAA, Munich with positive feedback and reviews
  • Veoneer announced as key active safety contributor to Mercedes S-Class with 4th generation Vision and Perception software, enabling Level 3 self-driving
  • Order intake over the Last Twelve Months (LTM) was more than US$500m of average annual sales at the end of Q3, 21

“Veoneer showed strong operational performance during the third quarter,” said Veoneer chairman, president and CEO, Jan Carlson. “Despite a sequential drop in the light vehicle production of 12{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, our net sales were essentially flat, sequentially. Through our market adjustment initiatives, we also managed to improve our gross profit and reduce our operating loss sequentially and year-over-year.

“The global underlying demand for all of our products remains very strong, but as is true for many industries and companies today, semiconductor shortages and supply chain constraints continue to hamper our growth. We are managing this situation daily and are doing our utmost to support our customers through this difficult situation.

“The gradual weakening of the LVP during the quarter was especially challenging where we saw a temporary build-up of inventory, which is reflected in our working capital and cash flow. We have taken initiatives to rectify the situation and I view this as another sign of our discipline and executional strength as the full year 2021 LVP expectation eroded from a 14{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} growth in the beginning of the year, to virtually flat growth from the depressed COVID-19 pandemic levels in 2020.

“Following the end of the quarter, we announced we signed a merger agreement with SSW and Qualcomm for the acquisition of Veoneer by SSW and subsequent transfer of Arriver to Qualcomm. The board of directors determined the $37 per share, all cash transaction offered by SSW and Qualcomm was superior to the previous transaction agreement with Magna International.

“The proposed transaction with SSW and subsequent SSW-Qualcomm transaction are pending and subject to various conditions and we will provide updates as appropriate.”

https://www.veoneer.com/en/press-releases

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Chip crisis dashes industry’s hopes for post-pandemic sales recovery

Hopes that 2021 would get well considerably of the vehicle revenue misplaced to the pandemic in 2020 are fading as the semiconductor scarcity carries on to deliver widespread manufacturing unit stoppages.

Final month, IHS Markit, which many automakers use as their benchmark for generation forecasting, mentioned it was trimming its manufacturing forecast by 6.2 percent, or 5 million models, to 75.8 million for 2021.

“The outlook for Q4 now reflects heightened danger as challenges to the provide chain – generally semiconductors – continue to be entrenched,” IHS analyst Mark Fulthorpe wrote. 

In its most new observe to investors, IHS mentioned that 9.5 to 11 million models could be shed about the comprehensive yr. In contrast to before statements from automakers and analysts anticipating a recovery in the next fifty percent of 2021, IHS explained Monday that the disruption could go on into the 1st 50 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of 2022. 

“H2 2022 could be the stage at which we appear for the stabilization of source, with restoration initiatives now setting up only from H1 2023,” the observe reported. “We are extending the window for possible disruption and delaying additional the position at which we believe a meaningful recovery can get started.”

In Europe, IHS estimates that some 1.1 million models were misplaced in the first 50 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. 3rd-quarter decline estimates have been lifted to 729,000 units from 666,000 units, mostly thanks to creation halts at Stellantis and Volkswagen. 

That determine does not contain up to 50,000 “incomplete” cars developed at VW that are missing important components that need to be added prior to they can be sold, IHS claimed.

On the need facet, LMC Automotive mentioned at the conclude of September that it was slicing its global light car forecast by 6 million units, to 81 million vehicles. In June, LMC had forecast need of 87 million cars for the calendar year.

“The hope of a return to pre-pandemic circumstances and a whole restoration in early 2022 has all but evaporated,” the analyst reported.

LMC also famous that foreseeable future auto demand could endure from current disorders, in which automakers have prioritized larger-margin types and emissions-compliant (and high-priced) EVs, foremost to higher rates and a scarcity of reduce-end automobiles on showroom flooring. 

“The absence of automobile availability and the increase in pricing might have pushed a range of shoppers in a lot of countries out of the new motor vehicle market place,” LMC reported, “creating them to both hold on to an existing car for extended, invest in a employed motor vehicle, or acquire out a lease, rather of acquiring/leasing a new car.”

LMC now expects world mild motor vehicle sales of 85 million models in 2022, a fall of 8 percent from its 2nd quarter forecast, and 94 million units in 2023, a decline of 3 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from the second quarter.