BY THE NUMBERS
U.S. equity futures rose on Friday after a key report showed the highest rate of consumer inflation in nearly 40 years. Wall Street broke a three-game winning streak on Thursday, taking a break from its recent rebound on allaying concerns about the omicron Covid variant. In Friday’s pre-release, Oracle shares soared, gaining more than 11%, the morning after the software giant beat estimates of its quarterly earnings and revenue. (CNBC)
The government said on Friday that the consumer price index for November rose 6.8% more than expected from a year ago, the fastest rate since 1982. The Federal Reserve, which holds its latest planned political meeting of the year next week, is already expected to adjust to mounting price pressures and announce plans to accelerate the reduction of its massive bond purchases in the age of Covid. (CNBC)
Elon Musk has sold more Tesla (TSLA) shares, most recently offloading 934,091 shares, according to Securities and Exchange Commission documents released Thursday evening. The shares are worth $ 963.2 million. Tesla shares fell 1% on Friday before market launch, a day after falling 6%. Last month, Musk sold a total of $ 9.85 billion in Tesla shares. (CNBC)
AMC Entertainment (AMC) plunged into pre-market trading to just over $ 29 a share, after SEC records showed a sale of 312,500 shares by CEO Adam Aron and a sale of 18,000 shares by CFO Sean Goodman. Aron had indicated in November that he would soon begin selling shares as part of estate planning. (Bloomberg)
IN THE NEWS TODAY
The Senate cleared a major hurdle on the way to raising the debt ceiling and removing the threat of default on US debt. Senators voted Thursday to allow Congress to increase the U.S. borrowing limit by a simple majority. The measure, attached to a bill that would prevent automatic Medicare cuts in 2022, is now heading to President Joe Biden’s office for signature. (CNBC)
* Public sources on Biden’s handling of Covid and the economy, according to CNBC survey
* New York lawmakers pass bill giving non-citizens the right to vote in local elections (PA)
Starbucks Employees (SBUX) voted join a union at a store in Buffalo, New York, the first union-owned location in the United States Workers at a second location in the city voted to reject the organizing campaign. Thursday’s vote count for a third Starbucks store in upstate New York ended with no final outcome as a number of ballots were still under review. (Reuters)
The next electric Chevrolet Silverado will be “unmatched” despite several competitors entering the market before it, General Motors (GM) CEO Mary Barra said Thursday. GM is expected to unveil the Chevrolet Silverado E at next month’s CES tech conference in Las Vegas. (CNBC)
* Ford Stops Reservations For F-150 Lightning Electric Pickup Due To High Demand (CNBC)
Julian Assange, the founder of Wikileaks, 50, is set to be extradited from Britain to the United States after the US government wins an appeal to the High Court in London. In the United States, the Australian entrepreneur will face criminal charges, including breaking a spy law and conspiring to hack into government computers. (CNBC)
Bob dole will be honored on Friday with a private service at the Washington National Cathedral and an audience at the WWII Memorial a day after lying in state at the United States Capitol, where President Joe Biden and the main leaders of both parties hailed a “giant in our history”. (PA)
STOCKS TO MONITOR
Chewy (CHWY) fell 10% in pre-market after reporting a larger-than-expected quarterly loss. Sales were in line with Street’s forecast, but profit was affected by higher costs for labor and supply chain issues.
Lululemon (LULU) reported adjusted quarterly earnings of $ 1.62 per share, 21 cents above estimate, with revenue slightly above forecast as well. However, Lululemon also warned that newer Covid-19 variants could impact demand for “athleisure” clothing if the virus issues lead to temporary store closures and other supply chain issues. The title slipped 1.5% in pre-market.
Broadcom (AVGO) was up nearly 7% in pre-market trading after beating Street’s forecast for its last quarter’s upper and lower results. Broadcom earned adjusted $ 7.81 per share, 7 cents more than estimates, and also released bullish forecasts on its customers’ continued high demand for cloud computing.
Costco (COST) earned $ 2.98 per share for its most recent quarter, up from a consensus estimate of $ 2.64, with revenue also beating Street’s forecast. The pace has come despite higher costs and supply chain issues that Costco said it was able to largely mitigate. Costco grew 1.8% in pre-release.
Taco Bell from Yum Brands (YUM) has abandoned its plan to test the plant-based version of Beyond Meat (BYND) by carne asada, according to a Bloomberg report. Taco Bell was reportedly dissatisfied with samples received in October, although the companies continue to work together on new products. Beyond Meat slipped 1.6% in pre-market trading.
C3Ai (AI) soared 20% in pre-release after the artificial intelligence software maker won a $ 500 million contract with the US Department of Defense for its suite of AI products.
American Outdoor Brands (AUGUST) fell 20% on Friday before market launch. The company reported adjusted quarterly earnings of 58 cents per share, well below estimates, with revenue also falling. American Outdoor said sales slowed due to a shift in the purchasing schedule of customers in the previous quarter to reduce supply chain issues.
Vail Resorts (MTN) lost $ 3.44 per share for its most recent quarter, less than the loss of $ 3.62 expected by analysts, thanks to higher sales of season tickets. However, revenues were lower than estimated.
Peloton (PTON) lost 3.5% in pre-market after Credit Suisse lowered the stock to “neutral” instead of “outperform”. The company noted a number of headwinds for Peloton, including a return to out-of-home fitness and a shift in consumer spending.