U.S. stock futures were lower Wednesday as Wall Street awaited the latest consumer price index data for insights on the pace of inflation.
Market Snapshot
At 8:00 a.m. ET, Dow futures lost 93 points, or 0.2%. S&P 500 futures lost 0.2% and Nasdaq-100 futures lost 0.3%.
Pre-Market Movers
Tesla Motors rose 1.7% in premarket trading. It was announced late Tuesday that Elon Musk, chief executive of the electric-vehicle maker, was appointed by President-elect Donald Trump, along with biotech company founder Vivek Ramaswamy, to lead the "Department of Government Efficiency." In addition to running Tesla, Musk also is CEO of SpaceX, owns X, the former Twitter, and created neurotechnology company Neuralink. The early action for the stock suggests that Tesla investors don't think Musk's new commitment will be an issue for the EV maker.
Rivian Automotive, Inc. jumped 8.5% after Volkswagen said it plans to invest up to $5.8 billion in the electric-vehicle maker, more than the $5 billion the companies agreed to when the joint venture was announced in June.
Spirit Airlines dropped 65% after The Wall Street Journal reported the airline was preparing to file for bankruptcy protection after merger talks with Frontier Airlines broke down. The Journal report cited people familiar with the matter.
Spotify Technology S.A. rose 9% after the audio streaming service reported third-quarter earnings of EUR300 million in the period, up from EUR65 million a year earlier. On a per-share basis, profit of EUR1.45 missed analysts' expectations. Revenue rose 19% to EUR3.99 billion and monthly active users jumped 11% to 640 million, higher than analysts' estimates of 639 million.
CAVA Group Inc., the Mediterranean fast-casual restaurant chain, posted third-quarter earnings that beat Wall Street expectations and the stock jumped 16% in premarket trading. Revenue in the period rose 39% from a year earlier to $241.5 million and also beat Wall Street forecasts.
Skyworks Solutions fell 7% after the semiconductor company posted fourth-quarter adjusted earnings of $1.55 a share that beat Wall Street expectations and revenue that met estimates but issued guidance for its fiscal first quarter that missed forecasts,
Space-launch company Rocket Lab USA, Inc. reported third-quarter sales of $105 million, beating Wall Street estimates of $103 million. For the fourth quarter, Rocket Lab expects to generate sales of $125 million to $135 million, above forecasts of $122 million. Shares soared 25%.
ZoomInfo Technologies Inc. was falling 15% after the provider of databases of customer contact information, posted third-quarter revenue of $303.6 million that beat analysts' estimates but fell 3.3% from a year earlier. The company said it expects fourth-quarter revenue of $296 million to $299 million.
Rocket Companies, the parent company of home loan originator Rocket Mortgage, posted a third-quarter loss of $481 million on revenue of $647 million, compared with year-earlier profit of $115 million on revenue of $1.2 billion. Shares declined 11%.
Marathon Digital Holdings Inc, the cryptocurrency mining company, was down 8.4% in premarket trading after reporting a third-quarter loss of 42 cents a share that was wider than analysts' estimates.
Market News
Super Micro Delays Filing September-Quarter Report as Delisting Looms
SUPER MICRO COMPUTER INC said on Wednesday it would delay the filing of its financial report for the September quarter, as the AI server-maker seeks a new auditor amid a delisting threat following its failure to submit its annual report.
The company's shares fell about 3% in premarket trading. The stock is down 55% since Ernst & Young resigned as auditor in October after earlier flagging concerns about the company's governance, transparency and internal control over financial reporting.
US Supreme Court to Hear Nvidia Bid to Avoid Securities Fraud Suit
The US Supreme Court is set on Wednesday to hear arguments in NVIDIA Corp 's bid to torpedo a securities fraud lawsuit accusing the artificial intelligence chipmaker of misleading investors about how much of its sales depended on the volatile cryptocurrency market.
The justices will hear arguments in Nvidia's appeal of a lower court's decision allowing a 2018 class action - litigation led by the Stockholm, Sweden-based investment management firm E. Ohman J:or Fonder AB - to proceed.
It is one of two cases to come before the Supreme Court this month that could lead to rulings making it harder for private litigants to hold companies to account for alleged securities fraud. The other one, involving Meta's Facebook, was argued on Nov. 6.
Tesla Recalls over 2,400 Cybertrucks in Sixth Callback This Year
Tesla Motors said on Wednesday it was recalling 2,431 Cybertruck electric pickup trucks in the United States as loss of drive power could increase the risk of a crash, in its sixth such move this year.
Last month, the EV maker said it would recall more than 27,000 Cybertrucks in the United States due to delayed rear-view camera images that could impair driver visibility and increase crash risks.
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