STOCK MARKET NEWS: Dow back above 30K, Kanye West buys Parler, more recession chatter

The federal government is launching a new app — StudentAid.gov — to apply for student loan debt relief.

President Joe Biden said the process takes less than five minutes.

The Biden administration plans to forgive up to $10,000 in federal student debt and up to $20,000 for borrowers who received a Pell Grant if they earn less than $125,000 a year. 

"As millions of people fill out the application, we’re going to make sure the system continues to work as smoothly as possible so that we can deliver student loan relief for millions of Americans as quickly and as efficiently as possible," Biden said.

Fubotv is surging in extended trading. The sports-first live TV streaming platform expects North American (NA) revenue and subscriber growth to top previously issued guidance.

The company is expected to close the third quarter of 2022 with NA revenue of at least $210 million, an increase of approximately 34% year-over-year, and Rest of World (ROW) revenue of at least $5.5 million. Prior third quarter revenue guidance for the NA streaming business was $200-205 million and $5-6 million for ROW.

Fubotv also said it is exiting online sports wagering:

"Following our previously announced strategic review, we have concluded that continuing with Fubo Gaming and Fubo Sportsbook in this challenging macroeconomic environment would impact our ability to reach our longer term profitability goals. Therefore, we have made the difficult decision to exit the online sports wagering business effective immediately."

Swiss bank Credit Suisse headquarters in Zurich, Switzerland, Oct. 4, 2022. Reuters/Arnd Wiegmann)

Credit Suisse Group AG has recently begun a sale process of its U.S. asset management arm, Bloomberg News reported on Monday, citing people familiar with the matter.

The unit, which includes a platform for investing in collateralized loan obligations, is expected to draw interest from private equity firms, the report said, adding that no final decision has been made and Credit Suisse could opt to hold on to the unit.

Credit Suisse declined to comment on the report.

Earlier in the day, Reuters reported, citing a source, that Credit Suisse has approached at least one Middle Eastern sovereign wealth fund for a capital injection, while some funds are looking at the scandal-hit Swiss bank's businesses as potential investment opportunities.

Earlier in October, Switzerland's second biggest bank, said it will buy back up to 3 billion Swiss francs ($3.01 billion) of debt, in an attempt to show its financial muscle when speculation about the bank's future gathered pace on social media.

($1 = 0.9959 Swiss francs)

Harold Hamm during NYSE bell ringing, New York, Dec. 8, 2016. (Courtesy Continental Resources/handout via Reuters)

MARKETS

Oil tycoon Harold Hamm to acquire Continental Resources for $74.28 per share

The energy billionaire's tender offer is for approximately 58 million shares of Continental's common stock, based on shares outstanding as of Oct. 12.

Continental Resources Inc said on Monday it had agreed to a higher offer from billionaire-founder Harold Hamm to take the U.S. shale producer private at a valuation of about $27 billion.

Hamm, a legendary oilman who once called the Organization of the Petroleum Exporting Countries a "toothless tiger", has offered $74.28 per share for the stake not owned by him and the Hamm family trust. He had proposed $70 per share in June.

The company's shares jumped more than 8% to $74.07 in afternoon trade.Monday's all-cash offer represents a premium of 8.9% to Continental's closing price on Friday and 15% to the close before Hamm's initial offer was announced.

The offer includes 28 cents per share in lieu of the anticipated dividend for the third quarter, the company said, adding it expected the deal to close before Dec. 31.

Hamm and his family own 83% of Continental's common stock and the deal does not require a vote by shareholders.

Cano Health fell more than 40% Monday. Shares plunged on a report that CVS Health is no longer interested in purchasing the primary care provider.

Barron’s said the report came from Dealreporter, a subscription news service that covers corporate activity.

CVS declined a Barron’s request for comment. Cano did not immediately respond.

Earlier this month Bloomberg reported that CVS was conducting due diligence on the Miami, Florida-based company that focuses on seniors and underserved populations.

At the time, the sources reportedly emphasized there is no certainty of a deal, adding that Humana Inc. has a right of first refusal if Cano finds a buyer based on an agreement made in 2019.

CVS IN EXCLUSIVE TALKS TO ACQUIRE CANO HEALTH: REPORT

Jeffrey Smith, CEO of Starboard Value speaks during an interview on CNBC on the floor of the New York Stock Exchange, Mar. 22, 2019. (Reuters/Brendan McDermid)

Activist investor Starboard Value LP has a nearly 5% stake in Splunk Inc and plans to push the software maker to take steps that would boost its share price, a source familiar with the matter said.

Starboard's Chief Executive Officer Jeffrey Smith plans to discuss the investment at Tuesday's 13D Monitor Active-Passive Investor Summit, the Wall Street Journal, which first reported the holding, wrote on Sunday.

Starboard and Splunk did not immediately respond to Reuters' requests for comment.

Last week, Splunk added two directors to its board, including a partner from Hellman & Friedman. The private-equity firm owns about 7.8% stake in the software maker.

San Francisco-based Splunk is searching for a new finance chief after Jason Child stepped down to join Britain's Arm Ltd.

Bose hearings aids in charging case (Photo: Walmart)

LIFESTYLE

Walmart, CVS, Walgreens start selling over-the-counter hearing aids: What to know

Retailers started selling over-the-counter hearing aids nationwide this week, giving Americans with perceived mild-to-moderate hearing impairments better access to products.

Retailers are rolling out over-the-counter hearing aids. The move comes after the Food and Drug Administration eased requirements for buying the medical device. Customers no longer need a medical exam, prescription or a fitting adjustment by an audiologist.

Effective Monday, Walmart U.S. customers who are at least 18 years old with such hearing impairments can choose from an assortment of hearing aids online and in-store at Walmart Vision Centers in Colorado, Michigan, Missouri, Ohio, Pennsylvania, Tennessee and Texas, the world's largest retailer said.

Mastercard

Mastercard is introducing Crypto Source, a new program to enable financial institutions to bring secure crypto trading capabilities and services to their customers.

The 2022 Mastercard New Payments Index reported that 29% of respondents globally hold cryptocurrency as an investment, with another 65% indicating a preference for crypto-related services to be provided by their current trusted financial institution.

To support this program, Mastercard is expanding its partnership and work with Paxos Trust Company, a leading regulated blockchain infrastructure platform.

The partnership aims for Paxos to provide crypto-asset trading and custody services on behalf of the banks, while Mastercard will leverage its technology to integrate those capabilities into banks’ interfaces, resulting in a seamless experience for the consumer.

Form 1040 Individual Income Tax forms photographed in Tiskilwa, Ill., Mon., Mar. 11, 2019. (Daniel Acker/Bloomberg via Getty Images)

MONEY

Millions could still be eligible for a stimulus check - and time is running out to claim it

Stimulus checks still need to be claimed by millions of low-income Americans, who are eligible for a potentially five-figure payout from the federal government.

Taxpayers will be able to e-file 2021 tax returns until November 17 through the IRS Free File remains open until November 17.

The Internal Revenue Service is sending letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits but did not claim them by filing a 2021 federal income tax return.

Many in this group may be eligible to claim some or all of the 2021 Recovery Rebate Credit, the Child Tax Credit, the Earned Income Tax Credit and other tax credits depending on their personal and family situation. The special reminder letters, which will be arriving in mailboxes over the next few weeks, are being sent to people who appear to qualify for the Child Tax Credit, Recovery Rebate Credit or Earned Income Tax Credit but haven't yet filed a 2021 return to claim them.

Sam's Club store in Shenyang, Liaoning Province of China, Dec. 21, 2021 (Photo by Yan Bo/VCG via Getty Images)

LIFESTYLE

Sam's Club memberships increase Monday for the first time in nearly a decade

Sam's Club shoppers will pay slightly higher membership fees Monday. The higher fees come as the unit of Walmart and other retailers navigate their own inflationary headwinds.

Sam’s Club is raising its annual membership fees to $50 from $45 for Club members. The $5 increase is the first in nine years. At the same time, Plus memberships will increase t0 $110 from $100, the first increase since 1999, when they were first introduced.

Shortly after the renewal takes effect, Club members will get $5 in Sam's Cash. Plus members will receive $10 in Sam's Cash.

BP logo at a petrol and diesel filling station, Llanteg, Pembrokeshire, Wales, Britain, Sept. 24, 2021. (Reuters/Rebecca Naden)

BP will buy U.S.-based renewable natural gas (RNG) producer Archaea Energy Inc for about $4.1 billion, the companies said on Monday, as the British energy major seeks to expand its alternative fuels business.

The deal will the largest ever RNG acquisition, topping Chevron Corp's $3.15 billion buyout of biodiesel maker Renewable Energy Group Inc earlier this year.

It will also be the largest acquisition BP has made since Chief Executive Bernard Looney took office in early 2020 with a pledge to slash BP's greenhouse gas emissions and oil and gas production while growing its renewables business.

RNG, or biogas, is gas captured from organic waste in landfills or farms.

Houston, Texas-based Archaea operates 50 RNG and landfill gas-to-energy facilities across the United States and BP aims to grow Archea's output five-fold by 2030 to 30,000 barrels of oil equivalent per day (boed),

Bank of America Corp. on Monday reported third-quarter earnings of $7.08 billion.

The bank, based in Charlotte, North Carolina, said it had earnings of 81 cents per share.

The results beat Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 79 cents per share.

The nation’s second-largest bank posted revenue of $30.36 billion in the period. Its revenue net of interest expense was $24.5 billion, which also topped Street forecasts. Nine analysts surveyed by Zacks expected $23.6 billion.

Bank of America shares have dropped 29% since the beginning of the year, while the S&P’s 500 index has declined 25%. The stock has fallen 32% in the last 12 months.

Roblox gained as much as 20% in Monday trading. The online game creation platform said second quarter revenue rose 30% to $591.2 million.

The net loss for the three months ended June 30 widened to $176.4 million, or 30 cents per share, from $140.1 million, or 25 cents.

“We are driving record levels of users and engagement globally as we execute on our innovation roadmap and broaden the appeal of Roblox across geographies and age groups,” said CEO David Baszucki.

Average Daily Active Users (DAUs) were 52.2 million, up 21% year over year.

Hours Engaged were 11.3 billion, up 16% year over year.

New U.K. Chancellor of the Exchequer Jeremy Hunt leaves 10 Downing Street in London, Britain, Oct. 14, 2022. (Reuters/Henry Nicholls)

New finance minister Jeremy Hunt scrapped Prime Minister Liz Truss's economic plan and scaled back her vast energy subsidy on Monday, launching one of the biggest U-turns in British fiscal policy to stem a dramatic loss of investor confidence.

Under the new plan, most of Truss's 45 billion pounds of unfunded tax cuts will go and a two-year energy support scheme for households and businesses - expected to cost well over 100 billion pounds - will now only run until April.

After that the government will review the best way forward, to come up with a targeted scheme that will "cost the taxpayer significantly less than planned".

Hunt said the planned tax cut changes would raise 32 billion pounds ($36 billion) every year. The pound soared by as much as 1.4% to a session high of $1.1332 after the statement.

Russ Mould, investment director at AJ Bell said: “New chancellor Jeremy Hunt will be pleased to see the FTSE 100 rising, the pound gaining against the dollar and the euro, and gilt yields falling in response to his new policy salvo. Achieving some degree of near-term calm is a good thing, but neither Mr. Hunt nor prime minister Liz Truss can rest on their laurels.”

($1 = 0.8887 pounds)

MONEY

Taxes are due today for Americans who received a filing extension

Taxpayers who requested a filing extension from the Internal Revenue Service must submit their returns by October 17 or risk facing a financial penalty.

Today is a key tax deadline for many Americans. Read on for more on how it may impact you.

Bitcoin, Dogecoin and Ethereum were all trading higher overnight. (Getty Images)

Cryptocurrency prices for Bitcoin, Ethereum and Dogecoin were all higher early Monday.

At approximately 4:45 a.m. ET, Bitcoin was trading at nearly $19,285 (+0.06%), or higher by $12.

For the week, Bitcoin was trading lower by nearly 0.85%. For the month, the cryptocurrency was lower by nearly 2.5%.

Ethereum was trading at approximately $1,310 (+0.35%), or higher by more than $4.5.

For the week, Ethereum was trading lower by more than 1.15%. For the month, it was trading lower by approximately 8.6%.

Dogecoin was trading at $0.059293 (+0.61%), or higher by approximately $0.000357. 

For the week, Dogecoin was lower by nearly 5.25%. For the month, the crypto was lower by nearly 2.45%.

Gasoline prices remained unchanged overnight, according to AAA. However, diesel prices rose nearly a penny during the same time period. (gasprices.aaa.com)

The average price of a gallon of gasoline was unchanged early Monday morning, AAA reported. 

The nationwide price for a gallon of regular gasoline on Sunday and Monday was $3.888. Saturday's price was $3.892. 

A week ago, gasoline sold for $3.919 per gallon. A month ago, that same gallon of gasoline nationwide was $3.682. A year ago, gasoline sold for $3.319 nationwide.

Gas hit an all-time high of $5.016 on June 14, approximately 18 weeks ago.

Meanwhile, diesel's price rose to $5.284 early Monday morning. On Sunday, a gallon of diesel cost $5.271 per gallon.

A week ago, diesel sold for $5.064 per gallon. A month ago, that same gallon of diesel nationwide sold for $4.965. A year ago, diesel was selling for $3.538 per gallon nationwide.

Vehicles stand in a drive-thru line at a Starbucks Corp. store in Richmond, California, on Wednesday, June 10, 2020. Photographer: David Paul Morris/Bloomberg via Getty Images

An Indianapolis, Indiana, Starbucks location in the city’s downtown area is the latest to close due to public safety concerns, setting off confusion among some business owners and community members who say they have not seen crime concerns. 

"We were not made aware of any type of safety concerns," Commander Phil Burton with the Indianapolis Metropolitan Police Department’s Downtown District told Fox 59.

"We’re doing everything that we can to ensure the safety of those that actually live, work, and visit downtown, so it really comes as an unfortunate incident, Starbucks not reaching out to myself as the commander, let alone my community relations sergeant or any officer for that matter."

The location at Monument Circle will close as of Oct. 28, according to local reports. A Starbucks spokesperson confirmed the closure to Fox 59, explaining the company’s "first priority is to make sure our partners are safe at work."

"We routinely review the partner and customer experience in our stores to see if the store is thriving, partners (employees) are feeling supported, and that we are meeting customer needs.  Our local leaders are, and have always been, empowered to use the many resources at their disposal to modify store operations and create the best experience for our communities. But when necessary, we will make the decision to close a store," the spokesperson said.

"Our first priority is to make sure our partners are safe at work. We will continue to work to make sure that partners can focus on crafting exquisite beverages and creating connections in a safe, warm, and welcoming environment."

"Yes, downtown is very safe," Burton told WRTV. "Downtown crime accounts for only about 5% of all the total crime throughout the city of Indianapolis."Business owners who operate near the Starbucks location expressed shock over the closure, saying they don’t have concerns over crime."I have police come in, not only as customers, but they come in every morning every day just to say hi and see how we’re doing. For me, I don’t have concerns with my safety or my staff’s safety because we do have protocols in place," Kim Nething, the owner of candy and soda shop Rocket Fizz, told the outlet.

Burton called the closure "unfortunate" and lamented that the chain did not speak with police about any concerns before a decision to close was made.

One call has been made to police from Starbucks in all of 2022, according to Fox 59, for a report of theft and battery of an employee. The suspect was arrested in the case. 

The manager of nearby soup shop, Soupremacy, echoed Nething that she, too, does not have safety concerns for her staff. 

"I don’t feel unsafe. I believe that you know, we do have a lot of homeless down here, but they pretty much stay to their selves," Chrystal Chadwick said. "We don’t have a lot of people coming in asking to use the restroom. If they do, they buy something; I let them use the restroom." 

"I personally just came off the streets myself not long ago, so I know what it feels like to be out there," Chadwick shared.  

Republican members of the city council, however, sounded the alarm after the announcement, calling on city leaders to address crime issues before they potentially spiral. 

"For years now, we have been saying that this city needs to get serious about public safety, and now businesses are closing on Monument Circle because we cannot keep it safe. It is time for the prosecutor, mayor, and council to come together to try to fix this problem before it gets worse. We cannot wait to act," Brian Mowery, a member of the Indianapolis-Marion County City-County Council, wrote in a statement on behalf of himself and four other Republican council members, according to local outlet WISH.

US stocks were higher heading into Monday morning as consumer inflation expectations for inflation signaled additional Fed moves. (Associated Press)

U.S. stocks were higher early Monday morning as U.S. consumers’ expectations for inflation signaled the Federal Reserve may keep aggressively raising interest rates, although that strategy raises the risks of a recession. 

Stocks ended last week with a broad slide, wiping out earlier gains. The S&P 500 fell 2.4% on Friday. The Dow Jones Industrial Average fell 1.3% and the Nasdaq composite ended 3.1% lower. Both indexes also turned lower after marching higher in early trading. The Russell 2000 gave up 2.7%. 

The Fed has already raised its benchmark interest rate five times this year, with the last three increases by three-quarters of a percentage point. Wall Street expects another raise of three-quarters of a percentage point at its next meeting in November. 

Investors have also been focusing on the latest earnings reports. Stocks fell to start the week last week, but early Thursday, after data showed inflation rose more than expected in September, but then surged to finish the day higher.

Thursday marked the first time the Dow industrials both fell at least 500 points and rose at least 800 points in a single trading day, according to Dow Jones Market Data. 

Outsize moves both to the upside and downside show just how jittery investors have gotten this year. Inflation has remained uncomfortably high, despite the Fed raising rates at the fastest pace since the early 1980s. Economic growth is also slowing. 

Meanwhile, Asian shares were mixed Monday as investors kept their eyes on the weeklong Communist Party congress in China. 

Benchmarks dropped in Tokyo, Sydney and Hong Kong, but they recovered in afternoon trading in Seoul and Shanghai. Mumbai gained. 

The meeting in China, which opened Sunday, is expected to reappoint Xi Jinping as leader for the next five years, reaffirming his grip on power and stronger state control over the economy. Analyst expect no change to the “zero-COVID policy.” “

Fresh updates from China’s Party Congress are being scrutinized, with the emphasis on technological advancement and national security seemingly brought up as high priorities for China’s longer-term direction.

Further de-coupling from U.S. technology seems to be the story,” said Yeap Jun Rong, market strategist at IG in Singapore. 

Japan's benchmark Nikkei 225 slipped 1.2% in afternoon trading to 26,775.79. Australia's S&P/ASX 200 dipped 1.4% to 6,664.40. South Korea's Kospi rebounded to gain 0.3% to 2,219.71. Hong Kong's Hang Seng lost 0.2% to 16,561.97, while the Shanghai Composite rose 0.5% to 3,086.38. In Mumbai, the Sensex gained 0.5%.

Economic moves by China overnight have raised oil prices worldwide. (Getty Images)

Oil prices rose on Monday after China rolled over liquidity measures to help its pandemic-hit economy, igniting hopes for a better fuel demand outlook from the world's top crude importer. 

Brent crude futures rose 81 cents, or 0.88%, to $92.44 a barrel by 0642 GMT, recovering from a 6.4% fall last week.

U.S. West Texas Intermediate crude was at $86.33 a barrel, up 72 cents, or 0.84%, after a 7.6% decline last week. 

China's central bank rolled over maturing medium-term policy loans while keeping the interest rate unchanged for a second month on Monday. 

Analysts said the full rollover is a signal that the central bank would continue to maintain loose monetary policy. The country also vowed to greatly increase domestic energy supply capacity and step up risk controls in key commodities including coal, oil and gas, and electricity, a senior National Energy Administration official said on Monday. 

China will further increase reserve capacities for key commodities, another state official told a news conference in Beijing. 

Oil found support from a combination of factors, including Chinese President Xi Jinping's comments at the Party Congress that reassured accommodative policies for the economy, a positive sign for demand outlook, CMC Markets analyst Tina Teng said. 

China is expected to release trade and economic data this week. Although its third-quarter GDP growth could rebound from the previous quarter, President Xi's stringent COVID-19 policy has the world's No. 2 economy facing what will most likely be its worst performing year in almost half a century. 

Looking ahead, oil prices are expected to remain volatile as production cuts by OPEC+ will tighten supplies ahead of the European Union embargo on Russian oil, while a strong U.S. dollar and further interest rate increases from the U.S. Federal Reserve limit price gains. 

St. Louis Fed President James Bullard said on Friday inflation had become "pernicious" and difficult to arrest, and warranted continued "frontloading" through larger increases of three-quarters of a percentage point.

Member states of the Organization of the Production Exporting Countries and their allies, including Russia, lined up on Sunday to endorse the steep production cut agreed to this month after the White House, stepping up a war of words with Saudi Arabia, accused Riyadh of coercing other nations into supporting the move.

OPEC+ pledged on Oct. 5 to cut output by 2 million barrels per day, which will lead to an actual drop of about 1 million bpd as some members are already producing below their targets. 

Despite this, top exporter Saudi Arabia will keep exports to key Asia markets steady in November.