LIVE MARKET NEWS: Stocks waffle in holiday week, Southwest under fire, housing headwinds persist

POLITICS

Biden vows to hold airlines accountable for widespread cancellations

President Biden vowed via Twitter Tuesday to hold airlines accountable after thousands of flights were canceled during the holidays following a winter storm.

President Joe Biden says his administration is working to hold airlines accountable for canceled holiday flights.

Transportation Secretary Pete Buttigieg also said Monday that he was tracking the situation with Southwest "closely" and would "have more to say" on the issue Tuesday.

FTX logo is seen through broken glass in this illustration taken, Dec. 13, 2022 (Reuters/Dado Ruvic/Illustration)

Federal prosecutors are investigating an alleged cybercrime that drained more than $370 million from crypto exchange FTX hours after it filed for bankruptcy, Bloomberg News reported on Tuesday citing a person familiar with the case.

The criminal probe into the stolen assets, launched by the Department of Justice is separate from fraud case against FTX co-founder Sam Bankman-Fried, the report added.

A spokesperson for the Manhattan U.S. attorney's office said he could not confirm or comment on the issue, while DoJ and FTX did not immediately respond to a Reuters request for comment.

FTX filed for U.S. bankruptcy last month and Bankman-Fried stepped down as chief executive, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.

The U.S. Department of Justice accused Bankman-Fried of causing billions of dollars of losses related to FTX, which a U.S. prosecutor called a "fraud of epic proportions."

TikTok app logo is seen in this illustration taken, Aug. 22, 2022. (Reuters/Dado Ruvic/Illustration)

POLITICS

House orders immediate removal of TikTok from all devices

The House Administrative Chief Administrative Officer has ordered the immediate removal of social networking app TikTok from all House-managed devices.

The popular Chinese video app TikTok has been banned from all U.S. House of Representatives-managed devices, according to the House's administration arm, mimicking a law soon to go into effect banning the app from U.S. government devices.

The app is considered "high risk due to a number of security issues," the House's Chief Administrative Officer (CAO) said in a message sent to all lawmakers and staff on Tuesday, and must be deleted from all devices managed by the House.

The new rule follows a series of moves by U.S. state governments to ban TikTok, owned by Beijing-based ByteDance Ltd, from government devices. As of last week, 19 states have at least partially blocked the app from state-managed devices over concerns that the Chinese government could use the app to track Americans and censor content.

The $1.66 trillion omnibus spending bill, passed last week to fund the U.S. government through to Sept. 30, 2023, includes a provision to ban the app on federally managed devices, and will take effect once President Joe Biden signs the legislation into law.

Tesla electric vehicle is seen through a charging point at Auto Shanghai show in Shanghai, China, April 20, 2021. (Reuters/Aly Song)

Tesla Inc shares fell 8% on Tuesday after a Reuters report that Tesla was planning to run a reduced production schedule in January at its Shanghai plant sparked worries of a drop in demand in the world's biggest car market.

The stock has lost more than half its value since the start of October as investors worry that Twitter was taking much of Chief Executive Elon Musk's time while fretting about his stake sale in the electric-car maker.

The world's most valuable automaker's production cuts at the Shanghai plant come amid a rising number of COVID-19 infections in the country.

"There's no question there are demand fears," Great Hill Capital Chaiman Thomas Hayes said, citing a delivery forecast cut from Chinese rival Nio Inc in the key market.

Hayes also added that Tesla's stock was facing a "perfect storm" of high-interest rates, tax loss selling and share sales by some funds that hold a significant amount of Tesla stock.

Tax loss selling is when an investor sells an asset at a capital loss to lower or eliminate the capital gain realized by other investments, for income tax purposes.

Meanwhile, a Reuters analysis showed that prices of used Tesla cars were falling faster than those of other carmakers, weighing on demand for the company's new vehicles rolling off the assembly line.

AMC Entertainment Holdings Chief Executive Officer Adam Aron on Tuesday asked the theater chain operator's board to freeze his compensation next year because of a sharp drop in the company's shares.

"I do not want 'more' when our shareholders are hurting," Aron, who earned $18.9 million in 2021, said in a series of tweets urging other top AMC executives to also forego their hikes.

Shares of the company have declined more than 75% this year as the rise of streaming and fewer blockbuster releases hit footfall at its more than 900 theaters, driving up cash burn and losses.

AMC has tried to ride out the pressure by raising cash and taking advantage of the retail interest it got during last year's meme stock rally. Earlier this month, the company said it would raise $110 million in new equity capital through the sale of its preferred stock and proposed a reverse stock split.

The cinema chain also said last week it was no longer in talks to acquire some theaters owned by now bankrupt Cineworld Group, following initial discussions with some lenders.

MARKETS

Southwest Airlines CEO warns of 'another tough day' as cancellations continue

Southwest Airlines CEO Bob Jordan warned Tuesday will be "another tough day" for the airline as it continues to cancel thousands of flights nationwide.

The chief executive of Southwest Airlines expects a “tough day” for the airline following a weekend of widespread cancelations caused Winter Storm Elliott.

The discount air carrier scrapped more than 70% of its flights Tuesday and the stock price has tumbled.

outhwest expects to be operating on roughly one third of its schedule "for the next several days."

It's been a punishing year for cryptocurrency investors also experiencing what's been dubbed a "crypto winter"...What's ahead?

MARKETS

Crypto had a volatile year with plummeting prices and exchanges collapsing. What's next?

Cryptocurrency prices plummeting, the fallout of large exchanges such as FTX and a steep decline in NFT transactions represent a turbulent year for crypto.

LIFESTYLE

Peloton will sell refurbished bikes in time for New Year's resolutions

Peloton will offer used versions of their in home exercise bike. All bikes will be refurbished, certified, and come with a 12-month warranty for piece of mind.

Peloton Interactive Inc is offering refurbished bikes across the continental U.S. and Canada at a discount of up to $500 over new bikes, the company said on Monday.

The program, called Peloton Certified Refurbished, will provide models priced at $1,145 and $1,995 with the same 12 month warranty provided with new bikes.

The fitness equipment maker was all the rage among fitness enthusiasts during COVID-19 lockdowns, with the company hitting a peak market valuation of nearly $50 billion in early 2021.

However with people returning to gyms the company saw demand for its fitness equipment dwindle and saw its market cap slump to $3.02 billion currently.

The company earlier this year expanded its rental program in the U.S., giving consumers a month-to-month option on its Peloton Bike and Bike+ models.

For sale sign in front on home in Berlin, N.J., Dec. 25, 2022

Home prices fell for a fourth month in October.

The S&P Corelogic Case-Shiller Index declined 0.5% month-over-month, while the 10-City and 20-City Composites posted decreases of -0.7% and -0.8%, respectively.

After seasonal adjustment, the U.S. National Index posted a month-over-month decrease of -0.3%, and the 10-City and 20-City Composites both posted decreases of -0.5%.

In October, all 20 cities reported declines before and after seasonal adjustments.

On an annual basis, prices were up 9.2%, a slower pace than the 10.7% rise in September.

Miami, Tampa, and Charlotte reported the highest year-over-year gains among the 20 cities in October.

Tuesday Morning plans to voluntarily delist its common stock from the Nasdaq Capital Market.

The off-price retailer of home goods and décor is the first step in a longer-term plan for the Company to deregister as a public reporting company and terminate its obligations to make filings with the Securities and Exchange Commission.

Due to a number of factors, including lower than forecast sales, increased insurance costs and costs relating to the separation with senior Company executives in November 2022, the company is facing near-term capital constraints and is actively seeking to raise additional capital.

With Tuesday Morning's liquidity position and the potential benefits of listing in mind, the board has determined that the voluntary delisting of the company’s common stock is in the best interests of the Company and its stockholders.

Bitcoin, Ethereum and Dogecoin were all lower heading into Tuesday morning. (Getty Images)

Cryptocurrency prices were lower early Tuesday.

At approximately 4:45 a.m. ET, Bitcoin was trading at nearly $16,861 (-0.17%), or lower by $28.

For the week, Bitcoin was trading higher by nearly 2.8%. For the month, the cryptocurrency was lower by nearly 2.6%.

Ethereum was trading at approximately $1,219.3 (-0.49%), or lower by about $6.1.

For the week, Ethereum was trading higher by slightly more than 4.9%. For the month, it was trading higher by approximately 1.65%.

Dogecoin was trading at $0.074897 (-0.96%), or lower by approximately $0.000728. 

For the week, Dogecoin was lower by almost 6%. For the month, the crypto was lower by nearly 15%.

Gasoline prices were higher on Tuesday nationwide, while diesel prices moved lower. (gasprices.aaa.com)

The nationwide price for a gallon of gasoline rose slightly Tuesday to $3.104. On Sunday and Monday, the price was unchanged at $3.102, according to AAA. 

One week ago, a gallon of gasoline cost $3.123. A month ago, that same gallon of gasoline cost $3.555. A year ago, the price for a gallon of regular gasoline was $3.286.

Gas hit an all-time high of $5.016 on June 14.

Diesel has slipped below $5.00 per gallon to $4.671, but that is still a far cry from the $3.569 of a year ago.

On Monday, a gallon of diesel nationwide cost $4.684.A week ago, a gallon of diesel cost $4.745, while a month ago, that same gallon of diesel cost $5.228, AAA reported.

S&P CoreLogic Case-Shiller reported housing prices for October dropped 0.8% from September, less than the 1.1% estimate.

Annually, prices rose 8.6% cooling from September's 10.4% jump and the lowest read since October 2020.

Home price figures data will be released by S&P CoreLogic Case-Shiller on Tuesday morning. (Getty Images)

This week’s other housing report -- pending homes sales for November -- will be out on Wednesday morning.

Stock futures were higher in the US early Tuesday as investors are hoping for a late year-end rally. (Associated Press)

U.S. stock futures rose Tuesday morning as investors hope a late year-end rally will lift a market that has been weighed down by recession fears. 

Markets in the U.S. and Europe were closed Monday for holidays. 

Indexes started Friday lower after Commerce Department figures showed that prices for services continued to climb faster than hoped last month. But stocks edged into positive territory after the midmorning release of the University of Michigan's consumer survey painted households as optimistic about the economy. 

Stocks markets were choppy with the S&P gaining 22.43, or 0.6%, to 3844.82, while the tech-focused Nasdaq Composite rose 21.74, or 0.2%, to 10497.86. The Dow Jones Industrial Average rose 176.44, or 0.5%, to end at 33203.93. 

Still, a three-week string of losses for the S&P and the Nasdaq have set markets up to end 2022 with a down month. The S&P has given up 5.8% in December, while the Nasdaq has lost 8.5% and the Dow industrials 4%. 

"Equities are left with a pretty difficult backdrop, and also one that's going to be pretty unlikely to result in much multiple expansion," said Ed Perks, chief investment officer at Franklin Templeton's Franklin Income Investors.

Perks's team has put about 60% of its flagship portfolio into bonds, a flip from a 70% allocation to stocks to start 2022. Given how closely corporate earnings are tied to consumer behavior, traders are sensitive to any evidence of how well American wallets are navigating inflation and slowing growth.

Jobless claims remain historically low, yet layoffs are mounting. Friday's data indicated consumer-spending growth slowed in November versus October, so the morning's strong Michigan survey came as a small relief. 

"What you're willing to pay at the pump, what you're willing to pay at the grocery store, that's what's going to guide markets and the Fed next year," said Matthew Bartolini, head of SPDR Americas research at State Street Global Advisors. 

Bonds fell on Friday as traders guessed that signs of persistent inflation increased the likelihood the Fed will keep interest rates high for longer into the future. Friday's personal-consumption expenditures data -- the Fed's preferred gauge of inflation -- showed that prices for services rose by 0.4% in November, a troublesome pace when annualized. Persistent climbs in services prices have been spooking investors in recent months. 

Meanwhile, Asian shares advanced Tuesday after China announced it would relax more of its pandemic restrictions despite widespread outbreaks of COVID-19 that are straining its medical systems and disrupting business. 

The Shanghai Composite index jumped 0.8% to 3,089.39. Hong Kong's markets were closed for a holiday, as were those in Australia. Tokyo's Nikkei 225 added 0.2% to 26,447.87 and the Kospi in Seoul gained 0.7%, to 2,332.79. In Bangkok, the SET index rose 0.8%, while the Sensex in Mumbai surged 1.2%. 

China's National Health Commission said Monday that passengers arriving from abroad will no longer have to observe a quarantine, starting Jan. 8. They will still need a negative virus test within 48 hours of their departure and to wear masks on their flights.

Oil prices rise to three-week highs after China eased COVID-19 restrictions, which fueled demand hopes. (Getty Images)

Oil prices rose to three-week highs on Tuesday as China's latest easing of COVID-19 restrictions spurred fuel demand hopes, while concerns that winter storms across the United States are affecting energy production continued to support prices. 

Brent crude was up 52 cents, or 0.6%, at $84.44 a barrel by 0712 GMT, while U.S. West Texas Intermediate crude was at $80.04 a barrel, up 48 cents, or 0.6%. They hit their highest since Dec. 5 earlier in the session. 

On Friday, Brent rose 3.6%, while WTI gained 2.7%, as they recorded their biggest weekly gains since October. 

China will end its quarantine requirements for inbound travellers starting on Jan. 8, the National Health Commission said on Monday, dropping a rule in place since the start of the pandemic three years ago.

That raised optimism of higher demand from the top crude oil importer. 

"Oil demand recovery is in sight for China, which is great news for the refining sector," said Serena Huang, head of APAC analysis at Vortexa. 

Oil prices are also drawing support from worries about supply disruption due to winter storms in the United States, said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.

The concerns "prompted buying, though trade was thin as many market participants were away on holiday," Saito added. 

Concerns over a possible production cut by Russia also contributed to oil price gains. Russia may cut oil output by 5% to 7% in early 2023 as it responds to price caps, the RIA news agency cited Deputy Prime Minister Alexander Novak as saying on Friday.