STOCK MARKET NEWS: Investors eye midterm elections, Meta layoffs coming? Apple’s China problem

TrueCar is falling in after-hours trading. The automotive pricing and information website missed Wall Street revenue estimates.

Third quarter revenue fell 29% to $39.1 million. The estimate was $42.62 million.

The net loss was $77.1 million.

“Based on our progress thus far, we expect our business to return to breakeven or positive adjusted EBITDA no later than the fourth quarter of 2023,” TrueCar said.

Virgin Group founder Richard Branson listens in on Mission Control comms during Virgin Orbit's Tubular Bells: Part One mission. June 30, 2021. (Photo: Virgin Orbit)

Virgin Orbit is higher in extended trading. Billionaire Richard Branson’s space launch services company received a $25 million investment from Virgin Investments, a part of the Virgin Group.

Third quarter revenue was $30.9 million compared to $0 million year over year.

The net loss of $43.6 million, compared to a net loss of $38.6 million in third quarter 2021.Binding backlog agreements was approximately $143.1 million.The company aims to more than double the 2022 launch rate in 2023.

Tripadvisor app is seen on a smartphone in this illustration taken Feb. 27, 2022. (Reuters/Dado Ruvic/Illustration)

Tripadvisor is lower in after-hours trading. The online travel company beat Wall Street revenue estimates but missed on profit.

Third quarter revenue rose 51% to $459 million. The estimate was $441.86 million.

Net income for the three months ended September 30 was $25 million, up from $1 million.

Diluted earnings per share was 16 cents, lower than the estimate of 38 cents.

During the third quarter of 2022, average monthly unique users on Tripadvisor-branded websites, a leading indicator of consumer travel demand, increased 8% year-over-year and was approximately 82% of the comparable period in 2019 (pre-COVID-19 timeframe), as compared to approximately 76% of the comparable period in 2019 in Q3 2021.

Pacific Biosciences is lower in extending trading. The life science technology company missed Wall Street revenue estimates but topped on profit.

Third quarter revenue of $32.3 million, a 7% decrease compared with $34.9 million in the prior year period. The estimate was $35.4 million.

The net loss for the three months ended September 30 was $77.0 million, compared to net income of $16.5 million for the third quarter of 2021.

The non-GAAP net loss came to 32 cents, compared to the estimate of a loss of 33 cents.

NBA 2K22 and Grand Theft Auto 5 by Take-Two Interactive Software in a store in Manhattan, New York City, February 7, 2022. (Reuters/Andrew Kelly)

Take-Two Interactive Software Inc cut its annual sales forecast on Monday, the latest videogame publisher to be hit by this year's dollar spike and a broader gaming industry slump.

Shares of the company were down nearly 10% in extended trading.

The easing of COVID-19 curbs, an over 15% rise in the dollar this year and lower spending by consumers facing decades-high inflation have all put the brakes on the sector's growth. Rival Electronic Arts also cut its annual forecast last week.

Take-Two said it now expects full-year adjusted sales to be between $5.4 billion and $5.5 billion, compared with $5.8 billion to $5.9 billion projected earlier.Analysts expected a figure of $5.89 billion, according to Refinitiv data.

Lyft logo is seen in this illustration taken June 27, 2022. (Reuters/Dado Ruvic/Illustration)

Ride-hailing company Lyft Inc on Monday projected current-quarter operating profit above Wall Street estimates, helped by cost-cutting measures and a resurgence in trips to airports and commutes to office.

Lyft joins bigger rival Uber Technologies Inc, which also forecast a bumper quarter ahead betting on cost controls and rising demand.

Active riders rose 7.2%, the smallest quarterly growth recorded so far this year, but revenue per active rider increased 13.7%, the highest growth compared to the prior two quarters.

For the fourth quarter, the company expects adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), a profitability metric keenly watched by investors, between $80 million and $100 million, compared with analysts' forecast of $84.5 million, according to Refinitiv IBES data.

It forecast revenue between $1.15 billion and $1.17 billion, while analysts expect $1.17 billion.

Operating profit for the third quarter was $66.2 million, beating analysts' estimate of $62 million.

Revenue rose 22% to a record $1.05 billion but fell short of estimate of $1.06 billion.

Lyft's net loss, however, widened to $422.2 million, or $1.18 per share, from $99.7 million, or 30 cents per share, a year earlier, due to impairment charges related to the closure of Argo AI, the autonomous vehicle startup in which the company had a stake.

Viatris is trading higher Monday. The global healthcare company is making two acquisitions to create what it expects to be a leading ophthalmology franchise.

The company is acquiring Oyster Point Pharma for $11 per share upfront. In addition, each Oyster Point stockholder will receive one non-tradeable contingent value right, representing up to an additional $2 per share contingent upon Oyster Point's achieving certain metrics based on full year 2022 performance.

Viatris is also buying Famy Life Sciences.The acquisitions have the potential to add at least $1 billion in sales by 2028.

As a result of the expected strong top-line growth, Viatris anticipates it will also add at least $500 million in adjusted EBITDA by 2028.

John Tyson (Photo: Washington County, Arkansas Sheriff's Office)

Tyson Foods Chief Financial Officer John Tyson was arrested for criminal trespassing and public intoxication on Sunday, according to a police report.

A college-aged female was alarmed to have found Tyson, 32, in her house uninvited, according to the Fayetteville, Arkansas, police report.

John Tyson, great-grandson of the company's founder, was named CFO in September. Shares of the largest U.S. meat producer were down 1.3% on Monday.The police report cited "Tyson's unlawful presence in a house, where he was not invited, paired with the odor of intoxicants, and his general demeanor when confronted by uniformed officers."

Cetera has received a $449 million funding commitment from Arsenal Capital Partners, a private equity firm specializing in investing in and building transformational healthcare companies.

Arsenal currently owns approximately 4% of common shares outstanding and will acquire approximately 30 million additional shares from funds controlled by EQT Private Equity, at a price of $15 per share.

Upon closing of the transaction, which is subject to HSR regulatory approval, Arsenal will own approximately 22% of diluted shares outstanding.

Spirit AeroSystems is up on a debt refinancing announcement. The maker of airplane fuselages, wings and other components has announced an offer to buyback $500 of its 5.5% bonds due in 2025.

The company is making a private offering of $800 million bonds due in 2029 to raise cash to buy back the 2025 notes. Spirit AeroSystems also plans to redeem its 3.95% bonds due in 2023.

Walgreens store is seen in Chicago, Ill., Feb. 11, 2021. (Reuters/Eileen T. Meslar)

Primary care provider VillageMD, which is backed by Walgreens Boots Alliance Inc, is buying urgent care provider Summit Health in a deal valued at nearly $9 billion, as the No. 2 U.S. pharmacy chain expands its healthcare footprint.

Private equity firm Warburg Pincus-backed Summit Health runs an independent physician-run medical groups, and also operates CityMD, which acts as alternatives to hospital emergency department visits.

Walgreens said on Monday will invest $3.5 billion through an even mix of debt and equity to support the acquisition, which is expected to close in the first quarter of 2023. The company will remain the largest and consolidating shareholder of VillageMD with about 53% stake.

The deal will also feature investments from health insurer Cigna Corp's healthcare unit Evernorth, which will also become a minority owner in VillageMD.

Walgreens also raised its fiscal year 2025 sales goal for U.S. healthcare business to $14.5 billion to $16.0 billion, from $11.0 billion to $12.0 billion previously to account for the deal.

Palantir Technologies logo in Davos, Switzerland, May 22, 2022. (Reuters/Arnd Wiegmann)

Palantir Technologies Inc posted its slowest quarterly growth in revenue since going public in 2020 due to weak demand for its data analytics software in Europe, while a strong dollar weighed on its profit, sending its share down 8.5% on Monday.

The company, known for its work with the U.S. Central Intelligence Agency, has been trying to cut its reliance on uncertain government contracts by seeking more commercial business.

But in the third quarter, revenue from the segment declined nearly 3% to $204 million from the previous three months, raising doubts among Wall Street analysts about sustained revenue from commercial deals amid rising cost of borrowing.

Palantir's revenue rose only 22% to $477.9 million. Excluding items, it earned 1 cent per share compared with expectations of 2 cents.

Adjusted earnings per share narrowly missed market expectations, also due to its investments in special purpose acquisition companies, finance chief Glazer said.

Palantir said it expects fourth-quarter revenue to be between $508 million and $510 million, excluding a $5 million forex impact. Analysts on average expect revenue at $502.7 million.

MARKETS

Midterm elections could boost or hinder energy, tech stocks

Investors are preparing for Tuesday's midterm elections, with either a Republican or Democratic victory expected to impact various sectors and impact the prices of stocks.

A portfolio of stocks tracked by advisory firm Strategas shows stocks expected to do well after a Republican victory have outperformed a counterpart Democrat portfolio, indicating a roughly 70% chance that Republicans win both the House and Senate.

Defense stocks will likely benefit no matter which political part controls congress.

A Republican win will probably benefit the pharmaceutical and biotech industries along with oil exploration and pipeline companies.

A Democratic victory could help clean energy and cannabis stocks.

Walmart store in Oklahoma City. (AP Photo/Sue Ogrocki)

Alabama has reached a $44 million opioid settlement with Walmart. The money will fund opioid abatement in Alabama’s cities and counties.

According to the terms of the agreement, Walmart will pay $35.7 million dollars to Alabama’s local governments for the purpose of opioid abatement, while three million dollars will be dedicated to improving the connectivity and integration of Alabama’s local court systems.

To date, Attorney General Marshall has sued seven opioid-related defendants and has finalized settlements valued at more than $300 million for the state and its local governments to combat the scourge of opioids across Alabama.

Blue Apron is lower in Monday trading. The meal kit company warned it may breach the terms of its credit agreements if it does not receive private placement or gift card funds in a timely manner and is unable to reduce a sufficient amount of costs, raise alternative funds or negotiate relief from its lenders.

The company is working with financial advisors to evaluate financing and other alternatives, in addition to being in discussions with its lenders.

Blue Apron Holdings reported a loss of $25.8 million in its third quarter.

On a per-share basis, the New York-based company said it had a loss of 74 cents, wider than the 50 cents expected by Wall Street estimates.

The meal-kit seller posted revenue of $109.7 million in the period, lower than the estimate of $114.54 million.

The Associated Press and Reuters contributed to this report.

Ryanair aircraft Boeing 737-8AS takes off from Riga International Airport, Latvia July 21, 2022. (Reuters/Ints Kalnins)

Ryanair on Monday predicted it would eventually become Europe's only major low-cost carrier, with Chief Executive Michael O'Leary claiming a widening gap on costs would make rivals easyJet and Wizz takeover targets.

"Europe is inexorably moving towards a similar out-turn as North America where you will have three very large, somewhat higher cost, high-fare connecting carriers, and one very large low cost carrier" in Ryanair, O'Leary said.

Speaking on a call with analysts following the release of results for the first half of its financial year, O'Leary praised easyJet for establishing a "fortress-like" position in some expensive airports like London Gatwick and Paris Charles de Gaulle, Geneva and Zurich.

But he said the British airline was being forced by Ryanair to retreat in other markets like Italy and Portugal.

Wizz, O'Leary said, was making progress with expansion in the Middle East but was retreating in the face of Ryanair expansion in some parts of its core central and eastern Europe region.

O'Leary said he also expected Portugal's TAP and Italy's ITA would both ultimately be taken over by larger rivals.

ECONOMY

Philadelphia Home Depot workers reject first storewide union in vote

Home Depot workers in Philadelphia voted 165 to 51 against forming the first store-wide labor union at the world's largest home improvement retailer on Saturday night.

The nation's largest home improvement chain successfully held off its first union. Here's how.

The outcome of the midterm elections 2022 could have a major impact on your wallet.

MARKETS

Elon Musk's top Twitter moves this weekend: Delay of $8 blue check mark, Jack Dorsey debate, layoffs and more

Elon Musk and Jack Dorsey debated Twitter's Community Notes feature and its commitment to accuracy on Sunday night, as the tech giant prepares to roll out its new subscription service.

Billionaire Elon Musk continues to reshape Twitter. Here's a look at what was a busy weekend for the social media giant.

Dogecoin was higher, but Bitcoin and Ethereum were lower early Monday. (Getty Images)

Cryptocurrency prices were mixed early Monday with Bitcoin and Ethereum lower, but Dogecoin higher early Monday.

At approximately 5 a.m. ET, Bitcoin was trading at nearly $20,691 (-1.17%), or lower by $246.

For the week, Bitcoin was trading higher by more than 1.5%. For the month, the cryptocurrency was higher by nearly 5%.

Ethereum was trading at approximately $1,565 (-0.69%), or lower by more than $10.90.

For the week, Ethereum was trading lower by more than 0.85%. For the month, it was trading higher by approximately 16.6%.

Dogecoin was trading at $0.11479 (+0.25%), or higher by approximately $0.00029. 

For the week, Dogecoin was lower by more than 2.5%. For the month, the crypto was higher by more than 80%.

Gas and diesel prices were both slightly higher early Monday morning nationwide. (gasprices.aaa.com)

The nationwide price for a gallon of gasoline rose slightly early Monday to $3.804. On Sunday the price stood at $3.80, according to AAA. The average price of a gallon of gasoline on Saturday was $3.797. 

One week ago, a gallon of gasoline cost $3.762. A month ago, that same gallon of gasoline cost $3.891. A year ago, that same gallon of gasoline cost $3.421. 

Gas hit an all-time high of $5.016 on June 14, approximately 22 weeks ago.

Meanwhile, diesel prices rose to $5.338 early Monday. Diesel cost $5.334 on Sunday.

One week ago, a gallon of diesel cost $5.334. A month ago, that same gallon of diesel cost $5.309. One month ago, a gallon of diesel cost $4.916. One year ago, a gallon of diesel sold nationwide for $3.643.

US stocks began the overnight whipsawing, but just before dawn, stocks were higher. (Associated Press)

U.S. stocks turned higher Monday morning after whiplashing earlier in the day as Americans will head to the polls Tuesday for midterm elections to decide which party will control the government after two years of Democratic control of all three branches. 

History suggests the party in power may suffer significant losses in the midterms, and decades-high inflation has become a significant issue for the Democrats. Analysts say regional markets may take a wait-and-see approach ahead of the U.S. midterm vote. 

U.S. stocks rose Friday but finished the week with losses after the monthly jobs report did little to shift expectations for continued interest-rate increases from the Federal Reserve. 

Stocks have come under pressure in recent days as central banks including the Fed and the Bank of England aggressively raise interest rates to combat inflation. 

Fed Chairman Jerome Powell signaled this week that officials might raise borrowing costs next year more than they had projected. 

The Dow Jones Industrial Average lost 1.4% for the week, snapping a four-week winning streak, while the S&P 500 fell 3.3%. The tech-heavy Nasdaq Composite declined 5.6% in its worst week since January. 

Meanwhile, global stocks mostly advanced Monday as investors weighed uncertainties. France's CAC 40 lost 0.4% to 6,391.90 in early trading, while Germany's DAX edged up nearly 0.1% to 13,470.68. Britain's FTSE 100 rose nearly 0.1% to 7,340.85.

The future for the Dow industrials slipped 0.1% while the future for the S&P 500 edged up 0.2%. 

China reported its trade shrank in October as global demand weakened and anti-virus controls weighed on domestic consumer spending. Exports declined 0.3% from a year earlier, down from September’s 5.7% growth, the customs agency reported Monday. Imports fell 0.7%, compared with the previous month’s 0.3% expansion.

Economists have been forecasting that the world's second-largest economy's trade will slow as global demand cools following interest rate hikes by the Federal Reserve and other central banks to rein in surging inflation. 

Speculation about a possible relaxation of China's zero-COVID strategy has had a huge impact on markets.

On Monday, Hong Kong's Hang Seng index gained 2.7% to 16,595.91 and the Shanghai Composite rose 0.2% to 3,077.85. There has been no official confirmation in China of a major change. 

“Over the weekend, Beijing has dashed hopes of China re-opening in the horizon, by reasserting of zero-COVID policies. And this could induce fresh caution,” Tan Boon Heng at Mizuho Bank in Singapore said in a report. 

Analysts say regional markets may take a wait-and-see approach ahead of the U.S. midterm vote. Japan's benchmark Nikkei 225 jumped 1.2% to finish at 27,527.64. Australia's S&P/ASX 200 gained 0.6% to 6,933.70. South Korea's Kospi gained nearly 1.0% to 2,371.79. Shares rose in Taiwan and but edged lower in India.

Oil prices were lower after Chinese health officials refused to lessen COVID restrictions. (Getty Images)

Oil prices fell more than $1 a barrel on Monday after Chinese health officials over the weekend reiterated their commitment to a stringent COVID containment approach, dashing hopes of a rebound in oil demand from the world's top crude importer. 

Brent crude futures dropped $1.24 or 1.26% to trade at $97.33 a barrel at 0731 GMT, after falling as low as $96.50 earlier in the day.

U.S. West Texas Intermediate crude was at $91.17 a barrel, down $1.44 or 1.55% after hitting a session-low of $90.40. 

"Oil prices dropped sharply as the Chinese officials vowed to stick to the COVID-zero policy while infected cases climbed in China, which may cause more restrictions measures, darkening the demand outlook," CMC Markets analyst Tina Teng said. 

A jump in the U.S. dollar is also weighing on oil prices, she added. Four Federal Reserve policymakers on Friday indicated they would still consider a smaller interest rate hike at their next policy meeting despite strong jobs data. 

Brent and WTI rose last week, climbing 2.9% and 5.4% respectively on rumours of a possible end to stringent COVID-19 lockdowns despite the lack of any announced changes. 

However, at a news conference on Saturday, health officials said they will persevere with their "dynamic-clearing" approach to COVID cases as soon as they emerge. 

Although China's crude oil imports rebounded to the highest level since May, volume for the first 10 months was still 2.7% below the same period a year earlier at 413.53 million tonnes or 9.93 million bpd.

"The market is still dealing with signs of weakness in oil demand from already high prices and the weak economic backdrop in developed markets," ANZ analysts said in a note, adding that demand in Europe and the United States has fallen back to 2019 levels. 

"We now expect global demand in Q4 2022 to grow by only 0.6 mb/d (millions of barrels per day) from the same quarter last year and to moderate next year." 

Oil prices have been underpinned by expectations of tighter supplies as the European Union's embargo on Russia's seaborne crude exports will start on Dec. 5 even though refineries worldwide are ramping up output. U.S. oil refiners this quarter will run their plants at breakneck rates, near or above 90% of capacity.

China's largest private refiner Zhejiang Petroleum and Chemical Co (ZPC) is raising diesel output.