Stocks retreat from records, Tesla tumbles 12%
General Electric plans to split its business into three separate companies
The Cow Guy Group’s Scott Shellady and Reverse Securities managing director Scott Fullman break down the opportunity in the moving market.
U.S. stock indexes pulled back from record highs Tuesday as investors digested another hot inflation reading.
The Dow Jones Industrial Average fell 111 points, or 0.31%, while the S&P 500 index and the Nasdaq Composite index slipped 0.35% and 0.6%, respectively. The losses come a day after all three of the major averages closed at all-time highs, and snapped the Nasdaq's 11-day winning streak.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 38214.76 | -171.33 | -0.45% |
| SP500 | S&P 500 | 5106.89 | -9.28 | -0.18% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15953.967108 | -29.12 | -0.18% |
The producer price index rose 0.6% in October, in line with what analysts surveyed by Refinitiv were expecting. Prices increased 8.6% year over year, posting the seventh straight record annual gain.
After the report, the yield on the 10-year note was down six basis points to 1.43%.
In stocks, General Electric Co. announced plans to break up into three separate companies focused on aviation, health care and energy. The aviation company will use the General Electric name once the split is complete.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GE | GE AEROSPACE | 164.49 | +2.14 | +1.32% |
Robinhood Markets Inc. said a security incident that occurred last week resulted in a hacker obtaining the personal information of 7 million customers. The company says it doesn’t believe any customer social security, bank account numbers or debit card numbers were exposed.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HOOD | ROBINHOOD MARKETS INC. | 17.14 | -0.20 | -1.18% |
In earnings, AMC Entertainment Holdings Inc. reported a smaller than expected loss and revenue that exceeded Wall Street estimates but said attendance was below pr-pandemic levels. The theater chain said it is exploring launching its own nonfungible tokens.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMC | AMC ENTERTAINMENT | 3.03 | -0.38 | -11.14% |
PayPal Holdings Inc. missed on revenue and gave a disappointing sales outlook for the remainder of the year. The payments company announced a partnership with Amazon that will allow Amazon customers to use the Venmo app to make purchases on the e-commerce site.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PYPL | PAYPAL HOLDINGS INC. | 66.99 | +1.03 | +1.56% |
Palantir Technologies Inc. said quarterly revenue spiked 36% year over year, topping estimates, as the data-analytics firm landed more government contracts and deals. Earnings were in line with analysts’ expectations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PLTR | PALANTIR TECHNOLOGIES INC. | 22.68 | -0.15 | -0.66% |
Tesla tumbled for a third straight session as investors debate the prospects of CEO Elon Musk's pledge to sell a chunk of his stock.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 194.05 | +25.76 | +15.31% |
Coinbase Global Inc., Krispy Kreme Inc. and Wynn Resorts Ltd. are among the companies set to report after Tuesday’s closing bell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COIN | COINBASE GLOBAL INC. | 211.11 | -7.05 | -3.23% |
| DNUT | KRISPY KREME | 12.79 | -0.23 | -1.73% |
| WYNN | WYNN RESORTS LTD. | 96.98 | +1.10 | +1.15% |
In commodities, West Texas Intermediate crude oil jumped $2.22 to $84.15 a barrel while gold ticked up $2.80 to $1,830.20 an ounce.
Overseas markets were mixed.
European bourses were weak across the board with Germany’s DAX 30 slipping 0.04% and France’s CAC 30 edging lower by 0.06% and Britain’s FTSE 100 declining 0.36%.
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In Asia, Japan’s Nikkei 225 lost 0.75% while Hong Kong’s Hang Seng index and China’s Shanghai Composite index edged up 0.2% and 0.24%, respectively.