STOCK MARKET NEWS: Dow surges 1,201 points in inflation rally, FTX imploding, bond yields skid
Stocks rally after latest CPI data eases taking the steam out of bond yields, election outcomes rolling in and all eyes are on FTX which needs a crypto lifeline. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
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| Symbol | Price | Change | %Change |
|---|---|---|---|
| I:DJI | $33,715.37 | 1,201.43 | 3.70 |
| CRM | $155.87 | 13.80 | 9.72 |
| HD | $312.04 | 25.29 | 8.82 |
| NKE | $99.57 | 7.47 | 8.11 |
| AMGN | $291.19 | 1.54 | 0.53 |
| MCD | $276.06 | -1.73 | -0.62 |
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.
The Nasdaq Composite surged over 7% the best performance ever following the CPI data.
NYSE Traders (AP)
3D printed Lady Justice figure is seen in front of displayed Legalzoom logo in this illustration taken, July 1, 2021. (Reuters/Dado Ruvic/Illustration)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| LZ | $9.46 | 1.26 | 15.37 |
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.
Elon Musk on a smartphone in this picture illustration taken April 28, 2022. (Reuters/Dado Ruvic/Illustration)
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
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BZH | $12.53 | 1.54 | 14.01 |
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.
Juul products are displayed at a smoke shop in New York, on Dec. 20, 2018. (AP Photo/Seth Wenig)
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 Press Secretary Karine Jean-Pierre speaks during a daily press briefing at the White House in Washington, D.C., Nov. 10, 2022. (Reuters/Tom Brenner)
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.
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.
Aluminium Dr Pepper cans leave the production line at Ball Corporation, Wakefield, Britain, Oct. 18, 2019. (Reuters/Andrew Yates)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| KDP | $37.92 | 0.35 | 0.94 |
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.
People pose with syringe with needle in front of displayed AstraZeneca logo in this illustration taken, Dec. 11, 2021. (Reuters/Dado Ruvic/Illustration)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| AZN | $64.25 | 3.21 | 5.25 |
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 parent Meta is curbing a slew of company perks after CEO Mark Zuckerberg announced 11,000 employees would lose their jobs.
Brooklyn Nets' Kyrie Irving speaks before the team's NBA basketball game against the New Orleans Pelicans, Wed., Oct. 19, 2022, in New York. (AP Photo/Frank Franklin II)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| NKE | $98.62 | 6.52 | 7.08 |
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.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DDS | $326.11 | 12.81 | 4.09 |
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.
Billionaire Sam Bankman-Fried is fighting for survival as his FTX cryptocurrency exchange spirals.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| AAL | $14.83 | 0.85 | 6.08 |
| DAL | $35.69 | 2.23 | 6.66 |
| JBLU | $7.94 | 0.62 | 8.51 |
| LUV | $39.02 | 1.82 | 4.89 |
| UAL | $44.30 | 1.93 | 4.56 |
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.
Smartphone with Tether logo is placed on displayed U.S. dollars in this May 12, 2022 illustration. (Reuters/Dado Ruvic/Illustration)
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.
Six Flags Great America in Gurnee, Ill. (File Photo: Six Flags Entertainment)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| SIX | $21.86 | 2.72 | 14.21 |
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.
Home for sale in Voorhees, N.J., Nov. 8, 2022
| Symbol | Price | Change | %Change |
|---|---|---|---|
| FMCC | $0.48 | 0.00 | 0.02 |
| RDFN | $4.46 | 1.20 | 36.54 |
| COMP | $2.26 | 0.41 | 22.16 |
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 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.
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.
Gas Prices (AAA)
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 rigs pumping (Jonathon Acorn - Reuters)
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.
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