The Federal Communications Commission has turned down applications by LTD Broadband and Starlink to receive support through the Rural Digital Opportunity Fund (RDOF) program.
"Starlink's technology has real promise," Chair Jessica Rosenworcel said. "But the question before us was whether to publicly subsidize its still developing technology for consumer broadband—which requires that users purchase a $600 dish—with nearly $900 million in universal service funds until 2032.”
The RDOF aims to distribute up to $20.4 billion over 10 years to provide broadband and voice service to rural communities.
Walt Disney is higher in after hours trading. The media and entertainment company announced price hike for Hulu and Disney+ and fiscal third quarter earnings. Revenues rose 26% to $21.5 billion. Net income from continuing operations grew 52% to $1.4 billion.
American Airlines took delivery of the twin-engine jetliner.
{{#rendered}}U.S. stocks turned in strong rally with all the major S&P sectors rising, as the Nasdaq Composite exited its bear market, and the Dow Jones Industrial Average exited its correction powered by a slight easing of consumer inflation in July. In commodities, oil rose 1.6% to $91.93 per barrel.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| F | $15.46 | 0.41 | 2.76 |
| DTE | $132.85 | 0.30 | 0.23 |
Ford Motor and DTE Energy have announced the largest renewable energy purchase from a utility in U.S. history.
The deal will help Ford achieve its goal of using the equivalent of 100% carbon-free electricity to assemble every vehicle in Michigan by 2025,10 years earlier than the company’s global goal.
Ford will buy carbon-free electricity through DTE’s MIGreenPower program, which is among the largest voluntary renewable energy programs in the country.
The move will add 650 megawatts of new solar energy capacity in Michigan for Ford.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| CSSE | $13.05 | 1.70 | 14.98 |
| RDBX | $2.13 | -1.38 | -39.29 |
Chicken Soup for the Soul Entertainment spiked more than 27% in early trading Wednesday before surrendering some gains.
The stock rose after shareholders of Redbox agreed to be acquired by the operator of advertising-supported video-on-demand streaming services.
Redbox shares tumbled.
Chicken Soup announced an agreement to acquire Redbox in May in a deal valued at $375 million.
Redbox stockholders will receive 0.087 shares of Chicken Soup for each Redbox share. Following the close of the transaction, Chicken Soup will own approximately 76.5% of the combined company. Redbox stockholders will own approximately 23.5%.
{{#rendered}}| Symbol | Price | Change | %Change |
|---|---|---|---|
| WEN | $20.31 | -0.80 | -3.79 |
Wendy's Co missed Wall Street estimates for quarterly U.S. same-store sales growth on Wednesday, as Americans reined in their spending on burgers and fries in the face of decades-high inflation.
Lower-income households are avoiding discretionary purchases as prices of everyday essentials surge, which has affected the hamburger chain that was already grappling with competition from McDonald's Corp, KFC and Burger King.
Wendy's U.S. same-store sales rose 2.3% in the second quarter ended July 3, compared with estimates for a 2.8% increase, sending its shares down 2.3% in premarket trading.
Wendy's revenue rose 9% to $537.8 million, but missed Wall Street expectations of nearly $540 million even as same-store sales at its restaurants outside the United States topped estimates.
The Dublin, Ohio-based restaurant chain, helped by a decline in general and administrative expenses and share repurchases, expects 2022 adjusted earnings per share between 84 cents and 88 cents, compared with its previous range of 82 cents to 86 cents.
Analysts on average expect 83 cents per share.
In the reported quarter, adjusted earnings were 24 cents per share, beating estimates of 22 cents.
U.S. stocks rallied across the board after consumer inflation rose 8.5% annually in July, down from June's 9.1%, yet costs are still near 40-year highs. The reading pushed bond yields lower as investors debate the size of future rate hikes. In commodities, oil fell to the $89 per barrel level.
{{#rendered}}Dow futures moved higher as investors digested a slight cooling of consumer prices which rose 8.5% in July.
This as the yield on the 10-Year Treasury fell to 2.69%.
The volatile mortgage market has kept some potential homebuyers on the sidelines.
Mortgage rates have whipsawed of late, falling for a couple of weeks in concert with moves in the bond market caused by the Federal Reserve hiking interest rates, but jumping again in the past week.
Overall, demand for mortgage applications rose 0.2% from a week earlier, according to the weekly survey from the MBA.
Read the full story: Homebuyers dial back amid affordability issues, shaky economy
{{#rendered}}U.S. equity futures were rising Wednesday morning ahead of the release of the July report on consumer prices. The major futures indexes suggest a gain of 0.3% when trading begins on Wall Street.
Oil prices slipped Wednesday as data showed U.S. crude inventories unexpectedly rose last week, signaling a potential pause in demand.
West Texas Intermediate crude futures traded around $90.00 a barrel. Brent crude futures were around $96.00 a barrel.
The Bureau of Labor Statistics is expected to say the consumer price index rose a slight 0.2% month-over-month in July. That’s down sharply from June’s 1.3% spike.
On a year-over-year basis watch for prices to soar 8.7% in July, easing back from June’s much hotter-than-expected 9.1% surge, the highest inflation rate in almost 41 years.
Earnings season continues with Fox Corporation, the parent of Fox News and Fox Business, reporting ahead of the opening bell. Others reporting include Wendy's and Jack in the Box. In the afternoon the focus will turn to another media giant, Dow member Walt Disney.
Shares of Sweetgreen tumbled 22% in after-hours trading after the fast casual restaurant chain reported second quarter revenue that missed analysts’ estimates. Revenue rose 45% to $124.9 million. The Wall Street estimate was $130.4 million. Same-store sales rose 16%. The net loss was $40 million, or 36 cents per share. The company cut its workforce by 5%.
Shares of Roblox fell 11% in extended trading after the gaming platform missed estimates for quarterly bookings on Tuesday, as the company faced a slowdown in the pandemic-fueled surge in spending for its games including "Jailbreak" and "Adopt Me!."
The company posted net bookings of $639.9 million in the second quarter, compared with $665.5 million a year earlier.
In Asia, the Nikkei 225 in Tokyo sank 0.7%, the Hang Seng in Hong Kong plunged 1.9% and China's Shanghai Composite Index lost 0.5%.
Wall Street's benchmark S&P 500 index lost 0.4%, falling to 4,122.47 on Tuesday for its fourth daily decline following disappointing earnings reports. The Dow slipped 0.2% to close at 32,774.41. The Nasdaq dropped 1.2% to 12,493.93.
The rapid pace of inflation likely cooled off slightly in July as gasoline prices fell and supply chain disruptions started to ease. However, that may provide little comfort to millions of Americans continuing to confront elevated costs for everyday goods.
The Labor Department is releasing the highly anticipated consumer price index report on Wednesday morning, providing a fresh look at just how hot inflation ran in July.
The average price of a gallon of gasoline slipped on Wednesday to $4.01, according to AAA. Gas was $4.033 on Tuesday. Gas has been on the decline since hitting a high of $5.016 on June 14. Diesel slipped as well to $5.098 from $5.120.
{{#rendered}}Oil prices slipped Wednesday as data showed U.S. crude inventories unexpectedly rose last week, signaling a potential pause in demand.
West Texas Intermediate crude futures traded around $90.00 a barrel. Brent crude futures were around $96.00 a barrel.
U.S. crude stocks rose by about 2.2 million barrels for the week ended Aug. 5, according to Reuters. Analysts had forecast that crude inventories would rise by around 100,000 barrels. Official government data is due on Wednesday.
Bitcoin was trading around $23,000 after snapping a four-day winning streak. In the past week, Bitcoin has gained less than 1% and is off more than 2% so far in August. For the year, the cryptocurrency is down more than 50%.
Ethereum was trading around $1,600, up more than 3% in the past week. Dogecoin was trading at 6 cents, gaining more than 2% in the past week.
Coverage for this event has ended.