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Dow and S&P 500 updates: Stock market news

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New York
CNN
 — 

The good vibes on Wall Street are fading fast: US slid tumbled yet again on Friday as investors come to grips with a souring economy.

The Dow ended the day down 282 points, or 0.9%. The S&P 500 fell 1.1%, and the Nasdaq Composite was 1% lower.

The sell-off has been broad, but the real estate and consumer discretionary sectors were been hit the hardest, down more than 3% and 1.8%, respectively.

Is the Fed to blame? Sentiment on Wall Street can change on a dime, and this week is evidence of that: The Dow has tumbled about 1,050 points just since the Federal Reserve’s dour policy update at 2 p.m. ET Wednesday.

CNN Business’ Fear and Greed Index, a measure of market sentiment, finally dipped into “Fear” Friday. The market has been in “Greed” mode for weeks.

Stocks had been riding high this month on weaker-than-expected inflation and a number of stronger-than-expected reports on the broad economy and the job market. Investors were hopeful that the Federal Reserve could slow its historic pace of rate hikes and inflation could right itself sometime next year without tipping the economy into a recession.

That excitement continued right up until Fed Chair Jerome Powell crashed Wall Street’s party Wednesday with some tough news: Economists at the Fed believe US gross domestic product, the broadest measure of America’s economy, will barely grow next year.

And they predict the US unemployment rate will rise to 4.6% by the end of 2023, which means roughly 1.6 million more Americans will be out of work.

Compounding fears from those Fed forecasts was a worse-than-expected retail sales report Thursday that sent stocks plunging. The Dow lost 765 points Thursday, or 2.3%, the index’s worst day in three months. The S&P 500 lost 2.5% and the Nasdaq tumbled 3.2%, their worst days in a month.

Now, economists at Moody’s Analytics predict America’s economy will grow at an annualized rate of just 1.9% in the fourth quarter, down from its previous estimate of 2.7%. Weak manufacturing and retail reports spooked Moody’s analysts, who also lowered their 2023 GDP forecast to just 0.9%, much lower than 2022’s 1.9% estimate.

“This leaves little room for anything to go wrong,” Moody’s economist Matt Colyar wrote in an analysis.

Not helping stocks: It’s December. Many traders are on vacation, volume is low and tiny moves can get exacerbated.

As my colleague Matt Egan notes, the market may be in a lose-lose situation. Good economic news has been bad news for investors, because the Fed is trying to cool down the economy as part of its inflation-fighting campaign. But bad economic news is also bad for investors – and everyone – because it raises the risk of a recession.

Adobe

(ADBE) and Facebook parent company Meta are the markets largest gainers today, up 3% and 2.8%, respectively. Adobe

(ADBE) shares soared after the company reported better-than-expected quarterly earnings and guidance. Meta, which is still down nearly 65% for the year, saw a tick after JPMorgan upgraded shares of the company to neutral from overweight.

– CNN’s Nicole Goodkind and Matt Egan contributed to this report

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Business

Horizon Therapeutics, Coupa Software, Rivian and more

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Take a look at some of the biggest movers in the premarket:

Horizon Therapeutics (HZNP) – The drugmaker’s shares surged 14.7% in the premarket after it agreed to be bought by Amgen (AMGN) for $116.50 per share in cash, with the deal valued at $27.8 billion. Amgen shares fell 2.6%.

related investing news

Coupa Software (COUP) – Private-equity firm Thoma Bravo agreed to buy Coupa, a specialist in business spending management software. The deal is worth $8 billion, or $81 per share in cash. Coupa shares soared 21.6% in premarket trading.

Rivian (RIVN) – The electric vehicle maker has paused talks with Mercedes-Benz on a planned joint venture to build electric vans in Europe. The move is part of Rivian’s effort to be more conservative with its cash outlays in the face of higher interest rates and economic concerns. Rivian fell 2.5% in premarket action.

Weber (WEBR) – The maker of grills and other outdoor cooking products agreed to be taken private by BDT Capital Partners for $2.32 billion in cash, or $8.05 per share. Weber shares closed Friday at $6.50.

Accenture (ACN) – Accenture fell 1.7% in the premarket after Piper Sandler downgraded the consulting firm’s stock to “underweight” from “neutral.” The firm expects Accenture to be negatively impacted by more cautious 2023 spending in the tech sector.

Under Armour (UAA) – Under Armour jumped 2.8% in premarket trading following a Stifel upgrade to “buy” from “hold.” Stifel praised the athletic apparel maker’s inventory management, which it said gives the company better profit margin certainty.

Best Buy (BBY) – The electronics retailer’s stock added 1.6% in the premarket after Goldman Sachs upgraded it to “neutral” from “sell.” It’s among retail stocks that Goldman feels has the ability to maintain prices as inflation moderates and to gain market share.

Gap (GPS), Tapestry (TPR), Levi Strauss (LEVI) – Goldman Sachs upgraded Gap and Tapestry to “buy” from “neutral” while downgraded Levi Strauss to “neutral” from “buy.” Goldman said its moves were based on which companies can thrive in an atmosphere that will see consumers become more discerning with their apparel spending. Gap added 2.7% in the premarket, with Tapestry up 2% and Levi Strauss losing 1.2%.

Brinker International (EAT) – The restaurant operator’s stock slid 3.7% after Goldman downgraded it to “sell” from “neutral.” Goldman said it was cautiously optimistic about the long-term results of the company’s effort to turn around its Chili’s chain, but thinks 2023 will be choppy in terms of sales and profit margins.

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Business

Stocks Waver After Producer Prices Rise More Than Expected

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Stocks wavered after producer-price data came in hotter than expected, disappointing investors who had hoped for signs of easing inflation before the Federal Reserve’s meeting next week.

The S&P 500 was flat on Friday morning, while the Dow Jones Industrial Average lost 0.1%. The technology-focused Nasdaq Composite rose 0.2%.

The producer-price index, which measures what suppliers are charging businesses and other customers, climbed 0.3% in November compared with the previous month, the Labor Department said Friday morning, the same as October’s revised 0.3% increase. Economists surveyed by The Wall Street Journal had expected U.S. supplier prices to increase 0.2% for November.

Investors had been hopeful that the inflation reading would offer evidence that price pressures in the U.S. are abating and would help solidify a smaller interest-rate increase next week. The Fed will make its next interest-rate decision on Wednesday, and the PPI data—combined with consumer-price data Tuesday—are expected to factor heavily into the trajectory of interest rates over the coming months.

Stock futures, which had traded higher throughout the morning, turned lower after the data’s release. Yields on U.S. government bonds rose, also reversing their performance earlier in the day.

In recent days, investors have grown increasingly worried that elevated inflation will force the Fed to keep lifting rates to higher levels than once expected, potentially pushing the U.S. economy into a recession.

“Even though the market sometimes seems to ignore Powell, thinking he’s bluffing, he keeps reiterating that he will put this economy into a recession if he has to,” said Eric Sterner, referring to Fed chairman

Jerome Powell.

Mr. Sterner, chief investment officer at Apollon Wealth Management, said he expects markets could retest their recent lows in the first and second quarter of next year.

“We’re stuck in this rut right now waiting for inflation to normalize and it may take all of next year for that to happen,” he said.

Those concerns about how high interest rates might go—and how they will affect the economy—have led to choppy trading in U.S. stocks recently and interrupted a rally that began in October. All three major U.S. indexes are on pace to end the week with losses, breaking a two-week winning streak. As of Thursday, the S&P 500 had fallen 2.7% for the week.

“The markets are so sensitive to this right now,” said Susannah Streeter, senior investment and markets analyst at

Hargreaves Lansdown.

“Although supersized rate hikes are probably in the rearview mirror, it’s about how long more gradual rate increases will continue for, and that’s why you’ve got these twin evils looming: recession and high inflation. That’s the real concern—that we’ll get a stagflation scenario.” 

The S&P 500 on Thursday snapped a five-day losing streak.



Photo:

BRENDAN MCDERMID/REUTERS

Yields on government bonds rose, with the yield on the benchmark 10-year U.S. Treasury note climbing to 3.525%, from 3.492% Thursday. The yield on the two-year note, which is more sensitive to near-term interest-rate expectations, rose to 4.332%. Yields rise when bond prices fall.

Brent crude, the international benchmark for oil prices, climbed 1.1% to $77 a barrel, on pace to possibly break a six-session losing streak that amounted to its longest since August 2021. Oil prices have slumped recently amid concerns that slowing economic growth will impede demand for fuel. Both Brent and its U.S. counterpart WTI—both of which reached eye-popping heights this year—are now trading lower on a year-to-date basis.

Outsize market moves have followed the release of inflation data in recent months.

“When CPI comes out slightly above or slightly below, you get massive market action,” said Brandon Pizzurro, director of public investments at GuideStone Capital Management. “Those of us that are defensively positioned are either going to really benefit from next Tuesday and Wednesday, or feel some short term pain if this Santa Claus rally is kickstarted.”

In China, major indexes climbed amid a sharp rise in property stocks. Hong Kong’s Hang Seng rose 2.3%. In mainland China, the Shanghai Composite added 0.3%, helping it notch its sixth consecutive week of gains. Japan’s Nikkei 225 gained 1.2%.

In Europe, the pan-continental Stoxx Europe 600 rose 0.4%.

Write to Caitlin McCabe at caitlin.mccabe@wsj.com and Jack Pitcher at jack.pitcher@wsj.com 

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Business

Japan sees core inflation at highest in 40 years as Asia-Pacific stocks rise

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Philippines central bank expects economy to see “low growth” next year, not a recession

Central bank governor Felipe Medalla of Bangko Sentral ng Pilipinas (BSP) said the economy is expected to see “low growth” of under 5%, not a recession, next year.

Speaking to CNBC’s Sri Jegarajah in an interview, he said the central bank estimates the economy to grow by 6% next year, higher than the International Monetary Fund’s outlook of 5%.

That outlook may change by around 100 basis points depending on worsening global financial conditions, he added.

The BSP delivered its second 75-basis-point hike of the year on Thursday, raising its benchmark interest rates to 5%.

— Natalie Tham, Jihye Lee

Tencent, NetEase stocks rise after China approves game titles

Shares of Chinese tech companies Tencent and NetEase listed in Hong Kong rose after the companies were granted gaming licenses by China’s National Press and Publication Administration.

Tencent shares rose 3% at open, and NetEase rose more than 5%.

The regulator issued licenses for some 70 games for November, including Tencent’s Metal Slug: Awakening and NetEase’s A Chinese Odyssey: Homecoming.

On Thursday, NetEase shares plunged more than 11% after the company announced its license with Activision Blizzard will be ending in January 2023.

— Jihye Lee

Japan’s core inflation index rises 3.6%, higher than expected

The core consumer price index for Japan rose 3.6% in October on an annualized basis, beating expectations for a rise of 3.5% and the quickest pace since February 1982.

The index, which excludes fresh food but includes fuel costs, rose 3.0% in September compared with the same period a year ago.

The latest data marks the seventh consecutive month that the nation has seen inflation levels above the Bank of Japan’s target of 2%.

— Jihye Lee

CNBC Pro: JPMorgan says these Asian travel stocks are poised to pop

As travel in Asia resumes and continues to gain momentum, especially after China’s recent announcement to reduce quarantine time for international travelers, JPMorgan says it remains bullish on the region’s travel industry.

“Considering the high forward booking visibility and further upside arising from the final leg of re-opening in parts of the region, we stay positive on the Asia airlines & airports sectors,” it said in a Nov. 11 note.

CNBC Pro subscribers can click here to find out which stocks investors should pay attention to.

— Charmaine Jacob

The S&P 500, Nasdaq Composite close lower Thursday

The Dow Jones Industrial Average closed near the flat line on Thursday despite falling as much as 314 points in the session. The S&P 500 fell 0.31%. The Nasdaq Composite declined 0.35%.

— Sarah Min

CNBC Pro: ‘Bull case for semis is compelling’: BofA picks top chip stocks to buy

Chip stocks, once a hot favorite among investors, are doing poorly this year.

But BofA says that despite consumer demand remaining under pressure, the “bull case for semis is also compelling.”

Semiconductor sales could rebound in the second half of 2023, BofA predicted.

Here are some themes that chip stocks could ride on, says the bank, which also picks names to buy.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Fed’s Jefferson said low inflation is the best way to achieve prosperity

Keeping inflation under control is the best way to ensure a strong economy for everyone, Federal Reserve Governor Philip Jefferson said Thursday.

“Low inflation is key to achieving a long and sustained expansion — an economy that works for all,” the central bank official said during an event in Minneapolis. “Pursuing our dual mandate is the best way for the Federal Reserve to promote widely shared prosperity.”

Jefferson did not provide any direct comments on where he sees policy heading as the Fed looks to achieve both full employment and stable prices.

His comments from following a flurry of speeches from his colleagues, who universally say the Fed will need to raise interest rates more to bring down inflation still running around its highest levels since the early 1980s.

—Jeff Cox

Fed’s Bullard says monetary policy not yet ‘sufficiently restrictive’

St. Louis Federal Reserve President James Bullard said more tightening may be needed for the central bank to tame inflation.

He said Thursday that inflation remains unacceptably high, noting that policy isn’t “sufficiently restrictive” at current levels. The Fed has raised rates from zero to a range of 4%-4.25% this year, as U.S. inflation soars to levels not seen in decades.

“Thus far, the change in the monetary policy stance appears to have had only limited effects on observed inflation, but market pricing suggests disinflation is expected in 2023,” Bullard said.

— Fred Imbert

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Business

Japan sees core inflation at highest in 40 years as Asia-Pacific stocks trade mixed

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Alibaba saw delivery disruptions during Singles Day, CEO says

Alibaba CEO Daniel Zhang said, “The resurgence of Covid has affected one area after another, resulting in abnormal or suspended logistic service in different places,” according to a FactSet transcript of the company’s quarterly earnings call Thursday.

Zhang noted logistics disruptions took place through Nov. 11, while adding the company was “seeing improvements.”

Alibaba also announced it would increase its share buyback program by $15 billion.

Read the full story here.

— Evelyn Cheng

Morgan Stanley confirms job cuts in Asia-Pacific

Morgan Stanley’s Asia-Pacific CEO Gokul Laroia confirmed layoffs in the Asia-Pacific region are taking place.

When asked if he could confirm reports of the firm’s plans to cut 10% of its staff of 500 in the region, Laroia told CNBC’s Emily Tan on Thursday the plans are already underway.

“I actually don’t know whether the number is 10%, but there is going to be a reduction in force,” he said. “In fact, that’s in progress.”

Laroia added China remains an important market for Morgan Stanley, despite slowing down more than expected this year, and that the firm expects to remain invested there.

— Jihye Lee

South Korean, Japanese defense stocks rise on North Korea’s missile launch

Shares of South Korean and Japanese defense-related companies rose in Friday’s morning session after North Korea was confirmed to have launched an inter-continental ballistic missile.

In South Korea, shares of Hanwha Aerospace rose 4.69%, Korea Aerospace gained 2.34%, and Victek climbed 2.3%.

In Japan, Mitsubishi Heavy Industries rose 0.93% while Hosoya Pyro-Engineering rose 1.7% in Asia’s afternoon session.

—Jihye Lee

CNBC Pro: While Muddy Waters bets against dLocal, here are the other fintech stocks that short sellers are eyeing

Philippines central bank expects economy to see “low growth” next year, not a recession

Central bank governor Felipe Medalla of Bangko Sentral ng Pilipinas (BSP) said the economy is expected to see “low growth” of under 5%, not a recession, next year.

Speaking to CNBC’s Sri Jegarajah in an interview, he said the central bank estimates the economy to grow by 6% next year, higher than the International Monetary Fund’s outlook of 5%.

That outlook may change by around 100 basis points depending on worsening global financial conditions, he added.

The BSP delivered its second 75-basis-point hike of the year on Thursday, raising its benchmark interest rates to 5%.

— Natalie Tham, Jihye Lee

Tencent, NetEase stocks rise after China approves game titles

Shares of Chinese tech companies Tencent and NetEase listed in Hong Kong rose after the companies were granted gaming licenses by China’s National Press and Publication Administration.

Tencent shares rose 3% at open, and NetEase rose more than 5%.

The regulator issued licenses for some 70 games for November, including Tencent’s Metal Slug: Awakening and NetEase’s A Chinese Odyssey: Homecoming.

On Thursday, NetEase shares plunged more than 11% after the company announced its license with Activision Blizzard will be ending in January 2023.

— Jihye Lee

Japan’s core inflation index rises 3.6%, higher than expected

The core consumer price index for Japan rose 3.6% in October on an annualized basis, beating expectations for a rise of 3.5% and the quickest pace since February 1982.

The index, which excludes fresh food but includes fuel costs, rose 3.0% in September compared with the same period a year ago.

The latest data marks the seventh consecutive month that the nation has seen inflation levels above the Bank of Japan’s target of 2%.

— Jihye Lee

CNBC Pro: JPMorgan says these Asian travel stocks are poised to pop

As travel in Asia resumes and continues to gain momentum, especially after China’s recent announcement to reduce quarantine time for international travelers, JPMorgan says it remains bullish on the region’s travel industry.

“Considering the high forward booking visibility and further upside arising from the final leg of re-opening in parts of the region, we stay positive on the Asia airlines & airports sectors,” it said in a Nov. 11 note.

CNBC Pro subscribers can click here to find out which stocks investors should pay attention to.

— Charmaine Jacob

The S&P 500, Nasdaq Composite close lower Thursday

The Dow Jones Industrial Average closed near the flat line on Thursday despite falling as much as 314 points in the session. The S&P 500 fell 0.31%. The Nasdaq Composite declined 0.35%.

— Sarah Min

CNBC Pro: ‘Bull case for semis is compelling’: BofA picks top chip stocks to buy

Chip stocks, once a hot favorite among investors, are doing poorly this year.

But BofA says that despite consumer demand remaining under pressure, the “bull case for semis is also compelling.”

Semiconductor sales could rebound in the second half of 2023, BofA predicted.

Here are some themes that chip stocks could ride on, says the bank, which also picks names to buy.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Fed’s Jefferson said low inflation is the best way to achieve prosperity

Keeping inflation under control is the best way to ensure a strong economy for everyone, Federal Reserve Governor Philip Jefferson said Thursday.

“Low inflation is key to achieving a long and sustained expansion — an economy that works for all,” the central bank official said during an event in Minneapolis. “Pursuing our dual mandate is the best way for the Federal Reserve to promote widely shared prosperity.”

Jefferson did not provide any direct comments on where he sees policy heading as the Fed looks to achieve both full employment and stable prices.

His comments from following a flurry of speeches from his colleagues, who universally say the Fed will need to raise interest rates more to bring down inflation still running around its highest levels since the early 1980s.

—Jeff Cox

Fed’s Bullard says monetary policy not yet ‘sufficiently restrictive’

St. Louis Federal Reserve President James Bullard said more tightening may be needed for the central bank to tame inflation.

He said Thursday that inflation remains unacceptably high, noting that policy isn’t “sufficiently restrictive” at current levels. The Fed has raised rates from zero to a range of 4%-4.25% this year, as U.S. inflation soars to levels not seen in decades.

“Thus far, the change in the monetary policy stance appears to have had only limited effects on observed inflation, but market pricing suggests disinflation is expected in 2023,” Bullard said.

— Fred Imbert

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Business

Walmart, Vodafone, Getty Images and more

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Take a look at some of the biggest movers in the premarket:

Walmart (WMT) – Walmart shares surged 6.9% in the premarket after the retailer reported better-than-expected quarterly profit and revenue, and also saw comparable store sales exceed estimates. Walmart also announced a $20 billion share repurchase program.

Vodafone (VOD) – Vodafone slid 4.1% in premarket trading after the mobile operator cut its earnings guidance and cash flow forecast, pointing to a challenging economic environment.

Getty Images (GETY) – Getty Images slumped 11.8% in the premarket after its quarterly revenue fell short of Wall Street forecasts, although the visual content marketplace operator did see earnings top consensus.

Home Depot (HD) – Home Depot fell 1.1% in the premarket, after beating top and bottom line estimates for its latest quarter but merely reaffirming its full-year earnings forecast.

Energizer Holdings (ENR) – The maker of Energizer and Rayovac batteries saw its stock surge 10% in premarket action following better-than-expected quarterly results. Energizer’s results came despite what the company calls a volatile operating environment with significant headwinds.

Taiwan Semiconductor (TSM) – Taiwan Semiconductor rallied 10.9% in off-hours trading after Berkshire Hathaway (BRKb) disclosed in a Securities and Exchange Commission filing that it had bought more than $4.1 billion of the chip maker’s stock during the third quarter.

Bath & Body Works (BBWI) – Bath & Body Works rose 2.8% in the premarket after investor Dan Loeb’s Third Point revealed a $265 million purchase in the retailer’s stock in its quarterly SEC filing.

Estee Lauder (EL) – Estee Lauder is close to a deal to buy high-end fashion company Tom Ford for roughly $2.8 billion, according to people familiar with the matter who spoke to The Wall Street Journal. It would be the cosmetics company’s largest-ever acquisition. Estee Lauder rose 2.1% in the premarket.

Tencent Music (TME) – Tencent Music surged 9.7% in premarket action after reporting better-than-expected quarterly profit and revenue. The China-based music streaming service benefited from an increase in the number of paying subscribers.

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Business

U.S. inflation data, China Covid measures

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European stocks were cautiously higher on Friday as global markets remained buoyant after softer-than-expected U.S. consumer price index reading signaled that inflation may have peaked.

The pan-European Stoxx 600 was up 0.2% by late morning, having pared earlier gains of around 0.7%. Financial services added 2.2% while health care stocks fell 1.7%.

The European blue chip index closed 2.8% higher on Thursday after the release of the U.S. consumer price index , which sent major averages stateside to their biggest one-day rallies since 2020.

Markets are hoping the data could encourage the U.S. Federal Reserve to ease its aggressive monetary policy tightening.

U.S. stock futures rose early on Friday, pointing to further gains on Wall Street, with investors also keeping an eye on outstanding results from the U.S. midterm elections.

Investor optimism was boosted on Friday after China said it would ease some Covid measures, which sent Hong Kong’s Hang Seng index soaring more than 7% overnight.

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Business

Wall Street layoffs pick up steam as Citigroup and Barclays cut hundreds of workers

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A trader, center, wears a Citigroup jacket while working on the floor of the New York Stock Exchange (NYSE) in New York.

Michael Nagle | Bloomberg | Getty Images

Global investment banks Citigroup and Barclays cut advisory and trading personnel this week as Wall Street grapples with sharp declines in revenue and dimming prospects for next year.

New York-based Citigroup let go of roughly 50 trading personnel this week, according to people with knowledge of the moves who declined to be identified speaking about layoffs. The firm also cut dozens of banking roles amid a slump deal-making activity, Bloomberg reported Tuesday.

London-based Barclays cut about 200 positions across its banking and trading desks this week, according to a person with knowledge of the decision.

The moves show the industry has returned to an annual ritual that’s been part of what has defined life on Wall Street: Cutting workers who are deemed to be underperformers. The practice, which had been on pause the last few years amid a boom in deals activity, returned after Goldman Sachs laid off hundreds of employees in September.

While shallow in nature, especially compared with far deeper cuts occurring in tech firms including Meta and Stripe, the moves may only be the start of a trend if capital markets remain moribund.

Equity issuance plunged 78% this year through October as the IPO market remained mostly frozen, according to SIFMA data. Debt issuance has also fallen off as the Federal Reserve boosts interest rates, slumping 30% through September.

No reprieve in 2023

In recent weeks, executives have grown pessimistic, saying that revenue from robust activity in parts of the fixed-income world has probably peaked this year, and that equities revenue will continue to decline amid a bear market in stocks.

“Most of the banks are budgeting for declines in revenue next year,” according to a person involved with providing data and analytics to the industry. “Investors know the general direction of the market, at least in the first half, and the thinking is that client demand for hedging has probably peaked.”

Among Wall Street players, beleaguered Credit Suisse is contending with the deepest cuts, thanks to pressure to overhaul its money-losing investment bank. The firm has said it is cutting 2,700 employees in the fourth quarter and aims to slash a total of 9,000 positions by 2025.

But even workers toiling at Wall Street’s winners — firms that have gained market share from European banks in recent years — aren’t immune.

Underperformers may also be at risk at JPMorgan Chase, which will use selective end-of-year cuts, attrition and smaller bonuses to rein in expenses, according to a person with knowledge of the bank’s plans.

Morgan Stanley is also examining job cuts, although the scope of a potential reduction in force hasn’t been decided, according to a person with knowledge of the company. Lists of workers who will be terminated have been drawn up in Asian banking operations, Reuters reported last week.

To be sure, managers at Barclays, JPMorgan and elsewhere say they are still hiring to fill in-demand roles and looking to upgrade positions amid the industry retrenchment.

Spokespeople for the banks declined to comment on their personnel decisions.

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Business

Take-Two Interactive, Lyft, TripAdvisor and more

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Take a look at some of the biggest movers in the premarket:

Take-Two Interactive (TTWO) – Take-Two tanked 17.4% in the premarket after the videogame publisher cut its bookings outlook for the year. Take-Two has been impacted by weaker mobile and in-game sales, although CEO Strauss Zelnick said the situation should improve within the next three to six months.

Lyft (LYFT) – Lyft sank 17.3% in premarket action after its latest quarterly report showed slowing revenue growth and ridership levels that remain below pre-pandemic levels. The ride-hailing service did, however, report better-than-expected earnings for its latest quarter.

TripAdvisor (TRIP) – TripAdvisor shares plummeted 20.8% in premarket trading after the travel website operator’s quarterly earnings came in below Wall Street forecasts. TripAdvisor said currency fluctuations had a meaningful negative impact on revenue and that travel demand remains strong.

Lordstown Motors (RIDE) – Lordstown shares rallied 14.6% in the premarket following news that contract manufacturer Foxconn will invest up to $170 million in the electric vehicle maker and become its largest shareholder.

DuPont (DD) – DuPont rallied 3.7% in the premarket after the industrial materials maker beat top and bottom line estimates for the third quarter. DuPont’s upbeat results came despite higher costs for raw materials and energy.

Coty (COTY) – The cosmetics company reported earnings that matched Wall Street estimates, with revenue slightly above analysts’ forecasts. Demand for Coty’s products held up despite higher prices, although it did take a hit from a stronger U.S. dollar. Coty rallied 3.2% in premarket trading.

Planet Fitness (PLNT) – The fitness center operator’s stock surged 7.1% in the premarket after its quarterly revenue and profit beat Wall Street estimates and it raised its full-year forecast. Its membership reached record highs during the quarter, with members visiting more frequently.

Perrigo (PRGO) – The over-the-counter drug and health products maker fell short on both the top and bottom lines for its latest quarter, and it also lowered its full-year forecast. Labor shortages and a stronger U.S. dollar were among the factors weighing on Perrigo’s results. Its stock slid 3.2% in premarket trading.

Qiagen (QGEN) – Qiagen gained 3.4% in premarket trading after the biotech company raised its full-year outlook, pointing to particular strength in its non-Covid product portfolio.

Medtronic (MDT) – Medtronic fell 5.5% in premarket action following the release of study results involving a device aimed at tough-to-treat hypertension. The device did reduce blood pressure in patients, but only slightly more than medications to treat the ailment.

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Business

Berkshire Hathaway Q3 earnings BRK

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Berkshire Hathaway Chairman and CEO Warren Buffett.

Andrew Harnik | AP

Berkshire Hathaway on Saturday posted a solid gain in operating profits during the third quarter despite rising recession fears, while Warren Buffett kept buying back his stock at a modest pace.

The Omaha-based conglomerate’s operating earnings — which encompass profits made from the myriad of businesses owned by the conglomerate like insurance, railroads and utilities — totaled $7.761 billion in the third quarter, up 20% from year-earlier period.

Insurance-investment income came in at $1.408 billion, up from $1.161 billion a year earlier. Earnings from the company’s utilities and energy businesses came in at $1.585 billion, up from $1.496 billion year over year. Insurance underwriting suffered a loss of 962 million, however, while railroad earnings dipped to $1.442 billion from $1.538 billion in 2021.

Berkshire spent $1.05 billion in share repurchases during the quarter, bringing the nine-month total to $5.25 billion. The pace of buyback was in line with the $1 billion purchased in the second quarter. Repurchases were well below CFRA’s expectation as its analyst estimated it would be similar to the $3.2 billion total in the first quarter.

However, Berkshire did post a net loss of $2.69 billion in the third quarter, versus a $10.34 billion gain a year before. The quarterly loss was largely due to a drop in Berkshire’s equity investments amid the market’s rollercoaster ride.

Berkshire suffered a $10.1 billion loss on its investments during the quarter, bringing its 2022 decline to $63.9 billion. The legendary investor told investors again that the amount of investment losses in any given quarter is “usually meaningless.”

Shares of Buffett’s conglomerate have been outperforming the broader market this year, with Class A shares dipping about 4% versus the S&P 500‘s 20% decline. The stock dipped 0.6% in the third quarter.

Buffett continued to buy the dip in Occidental Petroleum in the third quarter, as Berkshire’s stake in the oil giant has reached 20.8%. In August, Berkshire received regulatory approval to purchase up to 50%, spurring speculation that it may eventually buy all of Houston-based Occidental.

The conglomerate amassed a cash pile of nearly $109 billion at the end of September, compared to a total of $105.4 billion at the end of June.

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