The Dow Jones Industrial Average rose in late-morning trading Thursday, while the S&P 500 edged higher and the Nasdaq Composite also advanced, amid mounting concerns over AI spending.
The US Producer Price Index rose by 1.3% in September, following a 0.5% gain in August and well above the 0.6% rise expected in a survey compiled by Bloomberg as of 7:50 am ET. Core PPI, which excludes food and energy prices, increased by 0.7%, above the 0.3% gain expected and following a 0.2% gain in the previous month.
In company news, Amazon-backed (AMZN) Anthropic told prospective investors it's cash-flow positive on Q3 revenue of $16.8 billion ahead of a potential November initial public offering, CNBC reported late Wednesday, citing people familiar with the matter. Amazon shares were down 0.2% around midday.
The cost of protecting CoreWeave's (CRWV) debt against default for five years rose Thursday by as much as 74.5 basis points to 1194.5 bps, an intraday record, with swaps pricing in a chance of default at over 60% within the next five years, Bloomberg reported Thursday, citing data from ICE Data Services. CoreWeave shares were down 2.7%.
Charles Schwab (SCHW) reported Q3 adjusted earnings Thursday of $1.69 per diluted share, up from $1.31 a year earlier and above the FactSet consensus estimate of $1.65. Net Q3 revenue was $7.17 billion, up from $6.14 billion a year ago but below the FactSet consensus of $7.18 billion. Schwab shares were down 3.2%.
SpaceX's (SPCX) Grok Bot developer, Cursor, investigated whether its staff sent confidential information to Elon Musk's company during its training of the personal AI agent, The Information reported Thursday, citing internal communications it viewed. The outcome of Cursor's investigation couldn't be learned, but since the issue was flagged in July, the company has taken steps to ensure that training models no longer include employee usage data, the report said. Separately, service for mobile Starlink terminals used by Ukraine's military has been restored, Bloomberg reported Thursday, citing a person familiar with the matter. SpaceX shares were down 3.3%.
CCC Intelligent Solutions (CCC) has agreed to be acquired by a consortium led by GTCR and including Elliott Investment Management in an all-cash deal valuing the company at about $6.1 billion, CCC said Thursday. Under the terms of the deal, which is expected to close in Q1 of 2027, CCC stockholders will get $7.75 in cash per share, the company said. CCC shares were down 0.3%.
Price: 64.03, Change: -1.75, Percent Change: -2.66
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