Prices rose less than expected in November, the latest sign that runaway inflation that has been gripping the economy is beginning to loosen up.
The consumer price index, which measures a wide basket of goods and services, rose just 0.1% from the previous month, and increased 7.1% from a year ago, the Labor Department reported Tuesday. Economists surveyed by Dow Jones had been expecting a 0.3% monthly increase and a 7.3% 12-month rate.
Market Snapshot
At 8:34 a.m. ET, Dow e-minis were up 753 points, or 2.2%, S&P 500 e-minis were up 99.75 points, or 2.48%, and Nasdaq 100 e-minis were up 396.25 points, or 3.35%.
Pre-Market Movers
Oracle(ORCL) – Oracle gained 3% in the premarket after the business software giant posted top and bottom line beats for its latest quarter. Oracle continues to make significant progress in shifting more of its business to the cloud.
Boeing(BA) – Boeing rose 2.2% in premarket action after United Airlines(UAL) announced a 200-jet order that includes 100 787 Dreamliners and 100 737 Max jets, with options for further purchases. The order is worth $43 billion at list prices.
Moderna(MRNA) – The drugmaker announced that its experimental melanoma vaccine combined withMerck(MRK) cancer treatment Keytruda cut the risk of skin cancer recurrence by 44% compared with a treatment of only Keytruda. Moderna rallied 7.5% in the premarket, while Merck gained 1.9%.
First Solar(FSLR) – First Solar rose 1.1% in premarket trading following news that it will replaceFortune Brands Home & Security(FBHS) in the S&P 500. Fortune Brands is spinning off a division and will then replace First Solar in the S&P MidCap 400.
Mirati Therapeutics(MRTX) – Mirati Therapeutics surged 8.6% in premarket trading after the drugmaker’s new lung cancer treatment adagrasib received Food and Drug Administration approval.
Pinterest(PINS) – Pinterest was upgraded to “overweight” from “neutral” at Piper Sandler, which believes the image-sharing website operator can expand its profit margins. Pinterest rose 2.8% in premarket action.
Gold Fields(GFI) – The gold mining company’s stock slid 3.1% in the premarket after the company announced that CEO Chris Griffith would step down on Dec. 31. Company chairman Yunus Suleman said Griffith felt responsible for the company’s failure to acquire rival minerYamana Gold(AUY).
Fiverr(FVR) – Fiverr added 1.1% in premarket trading after Citi initiated coverage of the stock with a “buy” rating. Citi feels certain internet stocks like Fiverr – which connects freelancers with businesses and individuals who need services – already reflect concerns about macroeconomic weakness.
Affirm(AFRM) – Bank of America Securities downgraded the “buy now pay later” lender to “neutral” from “buy,” saying investor concerns over credit risk and discretionary spending cutbacks are likely to remain for several more quarters. Affirm fell 1% in the premarket.
Market News
Eli Lilly Sets Guidance for 2023 and Stock Falls As EPS Lags Current Consensus
Eli Lilly & Co. announced guidance for 2023 on Tuesday and highlighted potential launches for a series of treatments, including a potential regulatory submission for its much-anticipated obesity treatment tirzepatide.
The company said it expects per-share earnings to range from $7.65 to $7.85, and adjusted EPS of $8.10 to $8.30.
United Airlines Orders 100 Boeing Dreamliners
United Airlines HoldingsInc.UAL2.79%increase; green up pointing trianglesaid it would purchase 100 ofBoeingCo.’sBA3.75%increase; green up pointing triangle787 Dreamliners, with options to buy 100 more, seeking to replace jets that are coming due for retirement and to expand its global reach.
The Chicago-based airline said the order is the largest by a U.S. carrier for wide-body jets, which hold more passengers and are generally used for long-haul international routes.
Berkshire Hathaway Sells $34.4 Mln Worth of Shares in China's BYD
Berkshire Hathaway, the investment company owned by Warren Buffett, has sold 1.33 million Hong Kong-listed shares of electric vehicle maker BYD(002594.SZ)for HK$267.69 million ($34.43 million), a stock exchange filing showed.
The sale lowered Berkshire's holdings in BYD's total issued H-shares to 14.95% on Dec. 8, down from 15.07%, according to a filing to the Hong Kong Stock Exchange on Tuesday.
Binance Halts Withdrawals of Major USDC Stablecoin
Binance, the world's biggest crypto exchange, said on Tuesday it had "temporarily paused" withdrawals of the major stablecoin USDC.
"On USDC, we have seen an increase in withdrawals," Binance's chief executive Changpeng Zhao tweeted at around 0820 GMT.
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