STOCK MARKET NEWS: Disney Dow drag, election limbo dings stocks, Meta layoffs announced
Stock market in limbo as control of House & Senate still being determined and ahead of big inflation report. Meta latest tech giant to slash workers, Disney disappoints. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
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Beyond Meat products inside Kroger Co.'s Ralphs supermarket in Los Angeles, Calif., Mar. 15, 2020. (Reuters/Patrick T. Fallon)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BYND | $11.74 | -1.28 | -9.83 |
Beyond Meat on Wednesday missed Wall Street estimates for quarterly revenue as consumers trade down to cheaper alternatives from its pricier plant-based meat products in the face of decades-high inflation.
In October, Beyond Meat had cut its full-year revenue forecast saying that it was seeing demand soften due to inflation, specifically in its refrigerated sub-segment, as consumers were looking for cheaper forms of proteins, including animal meat.
The company's net loss widened to $101.7 million, or $1.60 per share, in the third quarter from $54.8 million, or 87 cents, a year earlier.
The plant-based meat maker's net revenue fell to $82.5 million in the quarter from $106.4 million a year earlier. Analysts on average had expected $98.1 million, as per Refinitiv IBES data.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| RDFN | $3.13 | -0.59 | -15.99 |
Redfin Corp. on Wednesday reported a loss of $90.2 million in its third quarter.
The Seattle-based company said it had a loss of 83 cents per share.
The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for a loss of 85 cents per share.
The real estate broker posted revenue of $600.5 million in the period, which missed Street forecasts. Seven analysts surveyed by Zacks expected $601.7 million.For the current quarter ending in December, Redfin said it expects revenue in the range of $430 million to $459 million.
Binance and FTX logos in this illustration, Nov. 8, 2022. (Reuters/Dado Ruvic/Illustration)
A deal for major cryptocurrency exchange FTX collapsed on Wednesday as bigger rival Binance said it was pulling out after doing due diligence on the proposed acquisition.
Binance signed a non-binding agreement on Tuesday to buy FTX's non-U.S. unit to help cover a "liquidity crunch" at the rival exchange, but the deal was subject to further due diligence.
"As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com," Binance said in a statement.
A representative for FTX did not immediately respond to a request for comment, but Chief Executive Officer Sam Bankman-Fried told employees in a Slack message viewed by Reuters that Binance had not previously expressed reservations about the deal.
The turmoil over FTX has hit crypto prices. Bitcoin, the biggest cryptocurrency by market value, was last down 13% on the day at $16,277.
FTX.com is also facing scrutiny from U.S. regulators over its handling of customer funds, as well as its crypto-lending activities.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| FICO | $443.77 | -6.76 | -1.50 |
FICO is higher in extended trading. The credit score provider missed Wall Street revenue estimates.
Fiscal fourth quarter revenue rose to $348.7 million for the quarter as compared to $334.6 million reported in the prior year period. The estimate was $343.96 million.
Net income for the quarter totaled $90.7 million, or $3.55 per share, versus $85.7 million, or $3.00 per share, in the prior year period.
Non-GAAP earnings per share was $4.40, higher than the estimate of $4.12.
The company expects fiscal 2023 revenue of $1.475 billion, compared to 2022 revenue of $1.377 billion.
Net income is expected to be $401 million, up from $373.54 million.
Bumble app is shown on an Apple iPhone in this photo illustration, Feb. 11, 2021. (Reuters/Mike Blake/Illustration)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BMBL | $20.93 | -1.02 | -4.65 |
Online dating firm Bumble Inc on Wednesday forecast fourth-quarter revenue below market estimates as it grapples with a strong U.S. dollar, stiff competition and the effect of inflation on consumer spending.
The company expects current-quarter revenue between $232 million and $237 million, compared to Wall Street's estimates of $254.5 million, according to Refinitiv data.
2022 Rivian R1S (Photo: Rivian)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| RIVN | $27.88 | -3.98 | -12.48 |
Rivian Automotive Inc RIVN.O reported quarterly revenue below Wall Street estimates on Wednesday, as supply chain snarls continue to limit the company's ability to produce electric vehicles that are in high demand.
Revenue was $536 million in the quarter ended September 30, compared with analysts' expectations of $551.6 million, according to Refinitiv data.
Front yard of a home is flooded as Tropical Storm Nicole continues to move towards Florida, Wed., Nov. 9, 2022 in Hollywood Beach, Fla. (Mike Stocker/South Florida Sun-Sentinel via AP)
President Joe Biden has declared an emergency declaration for the entire state of Florida due to Tropical Storm Nicole.
The decree orders Federal assistance to supplement local efforts beginning on November 7, 2022, and continuing.
The National Hurricane Center issued tropical storm and storm surge warnings for parts of Florida.
On the forecast track, the center of Nicole will move near or over Grand Bahama Island in the northwestern Bahamas this afternoon and evening and move onshore the east coast of Florida within the hurricane warning area tonight.
Nicole's center is then expected to move across central and northern Florida into southern Georgia Thursday and Thursday night, and into the Carolinas Friday.
U.S. stocks fell roughly 2% via the major averages as election uncertainty remains a market overhang and as investors brace for another report on rising inflation due tomorrow. Disney fell 13%, the worst percentage drop since March 2020. In commodities, oil lost 3.4% to $85.83 per barrel.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DIS | $86.56 | -13.34 | -13.35 |
SeaWorld Entertainment President and CEO Jim Atchison, (C) employees and members of the company's leadership team celebrate after ringing the closing bell at the New York Stock Exchange Jan. 15, 2014. (Reuters/Brendan McDermid))
| Symbol | Price | Change | %Change |
|---|---|---|---|
| SEAS | $52.71 | -3.93 | -6.94 |
SeaWorld Entertainment Inc. (SEAS) on Wednesday reported third-quarter profit of $134.6 million.
The Orlando, Florida-based company said it had net income of $1.99 per share.
The results did not meet Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $2.19 per share.
The theme park operator posted revenue of $565.2 million in the period, also falling short of Street forecasts. Five analysts surveyed by Zacks expected $578.6 million.
Elon Musk’s Twitter is backing off on adding “official” labels to select verified accounts.
The social media platform introduced “official” gray labels for high-profile verified accounts and then decided to get rid of it.
Electric cars are parked at a charging station in Sacramento, Calif., Wed., April 13, 2022. (AP Photo/Rich Pedroncelli)
California will raise taxes for those earning $2 million per year.
Voters rejected a ballot question to increase taxes by 1.75% per year for taxpayers earning $2 million per year. The measure would have generated up to $5 billion in new revenue each year.
Man pumps gas at a gas station in Wilkes-Barre, Penna, Oct. 19, 2022. (Reuters/Aimee Dilger)
Higher gas prices will stay with us, regardless of the final outcome of the midterm elections, said GasBuddy petroleum analyst Patrick De Haan.
AAA reports that the national average price of regular gasoline as of Wednesday is $3.80 per gallon. That's four cents higher than a week ago and nearly 40 cents more than a year ago. Still, it's well below the record of $5 per gallon, which was reached in early June.
Bed, Bath & Beyond store, Marlton, N.J., Oct. 29, 2022
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BBBY | $3.69 | -0.30 | -7.63 |
Bed Bath & Beyond is exchanging some of its debt for stock, a regulatory filing said.
The domestic merchandise retailer said it entered into a privately negotiated exchange agreement with an investor holding $31.5 million of its 4.915% and 5.165% bonds, maturing in 2034 and 2044, respectively.
Bed Bath & Beyond will issue an aggregate of approximately 2.8 million shares of common stock in exchange for the bonds.
The transaction is expected to close on or about November 14, 2022, subject to customary closing conditions.
House under construction at Hawthorne Estates by D. R. Horton in Medford, N.J., May 23, 2022. (Reuters/Andrew Kelly)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DHI | $78.01 | 4.75 | 6.48 |
U.S. homebuilder D.R. Horton Inc on Wednesday forecast first-quarter revenue below estimates and said it expects home prices to decline next year as a spike in mortgage rates and inflation dampen demand.
After a long spell of rapid surges in home prices through most of last year, due to tight supply, they slowed in August from the record pace reached in March. Some economists expect price growth to slow significantly by the end of the year.Borrowings have become less affordable for customers as mortgage rates more than doubled since the beginning of the year, following the U.S. Federal Reserve's aggressive monetary policy tightening to curb decades-high inflation.
Shares of D.R. Horton were up 6.6% at $78.10 as the top U.S. homebuilder was able to limit its net order decline compared to peers, according to Barclays analyst Matthew Bouley.
"Limited sequential declines in net order ASP (average selling price) suggest that DHI is successfully navigating price/pace as housing demand weakens," Citi analysts said in a note.
D.R. Horton said it expects revenue for the first quarter of fiscal 2023 to be between $6 billion and $6.8 billion, the midpoint of which is below analysts' expectations of $6.6 billion, according to Refinitiv data.Net sales order is expected to be down 25% to 35% from a year earlier.
For the fourth-quarter, the company missed estimates for revenue and profit.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| CEVA | $25.99 | -3.32 | -11.33 |
Ceva is lower in Wednesday trading. The chip designer announced that CEO Gideon Wertheizer has chosen to retire at the end of 2022. The CEVA board unanimously appointed Amir Panush as CEO effective January 1, 2023.
Ceva also reported Wednesday a loss of $22.3 million in its third quarter.
On a per-share basis, the Rockville, Maryland-based company said it had a loss of 96 cents. Earnings, adjusted for pretax expenses and amortization costs, came to 20 cents per share.
The results topped Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 19 cents per share.
The chip designer posted revenue of $33.7 million in the period, which fell short of Street forecasts. Three analysts surveyed by Zacks expected $34.9 million.Ceva shares have dropped 32% since the beginning of the year.
The stock has fallen 40% in the last 12 months.
The Associated Press contributed to this report.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| SFM | $32.37 | 3.70 | 12.91 |
Sprouts Farmers Market Inc. on Tuesday reported third-quarter net income of $65.7 million.
The Phoenix-based company said it had profit of 61 cents per share.
The results beat Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 52 cents per share.
The natural and organic food retailer posted revenue of $1.59 billion in the period, which also topped Street forecasts. Four analysts surveyed by Zacks expected $1.58 billion.
For the current quarter ending in December, Sprouts Farmers expects its per-share earnings to range from 35 cents to 39 cents.
The company expects full-year earnings in the range of $2.32 to $2.36 per share.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| AFRM | $13.16 | -2.48 | -15.86 |
Affirm Holdings Inc. on Tuesday reported a loss of $251.3 million in its fiscal first quarter.
On a per-share basis, the San Francisco-based company said it had a loss of 86 cents.
The results missed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for a loss of 82 cents per share.
The operator of digital commerce platform posted revenue of $361.6 million in the period, which beat Street forecasts. Seven analysts surveyed by Zacks expected $360.7 million.
For the current quarter ending in December, Affirm Holdings said it expects revenue in the range of $400 million to $420 million.
The company expects full-year revenue in the range of $1.6 billion to $1.68 billion.
Affirm Holdings shares have declined 84% since the beginning of the year. In the final minutes of trading on Tuesday, shares hit $15.64, a decrease of 90% in the last 12 months.
Roblox logo on a banner, to celebrate the company's IPO, on the front facade of the New York Stock Exchange (NYSE) in New York, U.S., Mar. 10, 2021. (Reuters/Brendan McDermid)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| RBLX | $36.16 | -2.98 | -7.61 |
Roblox Corp on Wednesday reported a bigger loss than expected, sending shares down 14% in premarket trading.
The company's revenue grew 2% to $517.7 million in the third quarter ended Sept. 30.
Roblox changed the period of estimated paying user life to 28 months from 25 months, resulting in a $111 million decrease in revenue during the reporting quarter. It also lowered costs by $25.5 million.
The company's results come as growth rates plummet in the broader gaming sector after people stepped outdoors and reserved spending for essential items in a bid to counter inflation.
Compounding challenges further, a deteriorating economy continues to ravage the advertising industry, including giants such as Snap Inc and Facebook owner Meta Platforms.
Net loss for Roblox grew to $297.8 million, or 50 cents per share, in the quarter, from $74.0 million, or 13 cents per share.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| META | $102.76 | 6.29 | 6.52 |
Meta Platforms Inc said on Wednesday it would cut more than 11,000 jobs, or 13% of its workforce, in one of the year's biggest layoffs as the Facebook parent battles soaring costs from its push into the metaverse amid a weak advertising market.
The mass layoffs, the first in Meta's 18-year history, follow thousands of job cuts at other major tech companies including Elon Musk-owned Twitter and Microsoft Corp.
The company also plans to cut discretionary spending and extend its hiring freeze through the first quarter. But it did not specify the impacted regions or the expected cost savings from the moves.
It now expects 2023 expenses of as much as $100 billion, compared with up to $100 billion previously, with more of the resources being focused on areas such as artificial intelligence, ads, business platforms and the metaverse.
U.S. stocks fell sharply across the board as investors wait on key race outcomes that will determine control of the House and Senate with several still neck and neck. Disney shares fell 11% weighing on the Dow Jones Industrial Average after a disappointing quarter. In commodities, oil fell nearly 2% to the $87 per barrel level.
Redfin is the latest company to cut its workforce as the housing market continues to weaken.
Bitcoin and other cryptocurrencies continues to take a beating after FTX founder and CEO Sam Bankman-Fried took to Twitter to share that his firm had "come to an agreement on a strategic transaction with Binance," saying FTX asked its rival for the apparent bailout.
Twitter owner Elon Musk (Getty Images)
In the days following Elon Musk's $44 billion purchase of Twitter, the billionaire sold almost $4 billion in Tesla stock.
Musk sold a total of 19.5 million shares between Nov. 4-8, according to regulatory disclosures.
The Tesla CEO saw his net worth fall below the $200 billion mark on Tuesday as shares of the electric vehicle giant hit a 52-week low, sparking murmurs that his recent acquisition of Twitter is a distraction giving investors the jitters.
Facebook parent Meta confirmed it will be cutting 11,000 workers, a move CEO Mark Zuckerberg blamed on the "macroeconomic downtrend" and "increased competition" among other factors.
Stock traders (Reuters)
U.S. equity futures were trading modestly lower Wednesday morning, as investors awaited the outcome of the midterm elections and a major inflation update due later in the week.
Oil prices were adding to Tuesday's declines.
U.S. West Texas Intermediate (WTI) crude futures traded around $88.00 a barrel. Brent crude futures traded around $94.00 a barrel.
Democrat John Fetterman defeats Dr. Mehmet Oz, flips Pennsylvania Senate seat
Gov. Brian Kemp and Stacey Abrams battled in high-profile rematch of 2018 Georgia gubernatorial showdown.
Gas Prices (AAA)
The nationwide price for a gallon of gasoline rose Wednesday to $3.805, according to AAA.
The average price of a gallon of gasoline on Tuesday was $3.804.
One week ago, a gallon of gasoline cost $3.765. A month ago, that same gallon of gasoline cost $3.910.
Gas hit an all-time high of $5.016 on June 14.
Diesel gained slightly to $5.357.
Sen. Marco Rubio, who has served in the Senate since 2011, fought Dem Rep. Val Demings in the 2022 midterm election
Oil rig at sunrise (AP)
Oil prices traded lower Wednesday as industry data showed U.S. crude stockpiles rose more than expected.
There are also worries that a rebound in COVID-19 cases in China would hurt fuel demand.
U.S. West Texas Intermediate (WTI) crude futures traded around $88.00 a barrel. The benchmarks fell around 3% on Tuesday.
Brent crude futures traded around $94.00 a barrel.
U.S. crude oil inventories rose by about 5.6 million barrels for last week, according to market sources citing American Petroleum Institute figures. Analysts surveyed by Reuters estimated on average that crude inventories would rise by about 1.4 million barrels.
COVID cases in Guangzhou and other Chinese cities have surged, with the global manufacturing hub becoming the country's newest COVID epicenter.
Governor Ron DeSantis, a potential 2024 Presidential frontrunner, has won re-election in Florida.
Bitcoin was trading at around $18,000, after a three-day losing streak.
For the week, Bitcoin was trading lower by more than 9%.
For the month, the cryptocurrency was lower by more than 8%.
Bitcoin has lost 59% year-to-date.
Ethereum was trading around $1,200, after losing more than 15% in the past week.
Dogecoin was trading at 8 cents, after losing more than 37% in the past week.
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