Wall Street Today: GameStop falls more than 7% despite posting rising sales
Stocks decline as Nasdaq fades from record
Stocks fell Wednesday on investors' concerns that Covid-19 cases remain elevated and uncertainty about when central banks may dial back easy-money policies. The $S&P 500 index(.SPX.US)$ declined 5.96 points or 0.1%, to 4514.07. The $Dow Jones Industrial Average(.DJI.US)$ retreated 68.93 points, or 0.2%, to 35031.07. Meanwhile, the tech-heavy $Nasdaq Composite Index(.IXIC.US)$ fell 87.69 points, or 0.6%, to 15286.64 as large technology stocks dropped.
Stocks have lost steam in recent days as investors assessed the rise in coronavirus cases and a weaker-than-expected jobs report on Friday. Money managers are awaiting fresh cues from the Federal Reserve and the European Central Bank about how signs of a slowing economic recovery and high inflation levels may influence their plans to taper monetary stimulus.
U.S. economic growth slowed over the summer due to delta ariant, Fed's beige book says
The U.S. economic recovery slowed and prices continued rising over the summer as a resurgence of Covid-19 cases linked to the Delta variant led consumers to pare back spending and persistent supply chain problems hampered businesses, the Federal Reserve said in a report Wednesday.
"The deceleration in economic activity was largely attributable to a pullback in dining out, travel, and tourism in most Districts, reflecting safety concerns due to the rise of the Delta variant," the report said. The report, known as the Beige Book, collects anecdotes from businesses around the country.
Sea Ltd. falls after $6.28 billion offering, biggest of 2021
$Sea(SE.US)$ announced today a proposed registered underwritten public offering (the "ADS Offering") of American Depositary Shares ("ADSs"), each representing one Class A ordinary share, par value $0.0005 per share, of the Company.
The Company proposes to offer 11,000,000 ADSs in the ADS Offering, subject to market and other conditions. The overall offering value amounts to $6.28 billion, being the biggest of 2021. Stock fell 3% post-market.
GameStop falls more than 7% despite posting narrower loss and rising sales
$GameStop(GME.US)$ fell more than 7% in extended trading Wednesday even after the retailer posted a narrower loss than last year. For the quarter ended July 31, the company reported a net loss of $61.6 million, or 85 cents per share. In the year-earlier period, GameStop reported a loss of $111.3 million, or $1.71 per share. On an adjusted basis, GameStop lost 76 cents per share.
The SEC requested additional documents from GameStop in the agency’s investigation of trading activity in GameStop and other companies.
Lululemon shares surge on earnings beat, hiked outlook as shoppers spend on workout apparel
$Lululemon Athletica(LULU.US)$ shares surged more than 13% in extended trading Wednesday after the athletic apparel maker reported fiscal second-quarter profit and revenue that topped analysts’ expectations. In its fiscal second quarter, sales in North America rose 63% year over year and were up 49% internationally.
Based on its current forecast, Lululemon is now on track to surpass its 2023 revenue target by the end of this year, two years ahead of schedule.
Coinbase shares fall after it reveals SEC plans to sue over interest-earning product
Shares of $Coinbase Global(COIN.US)$ fell 3.2% on Wednesday.
Coinbase has received notice of a possible enforcement action from the SEC related to its interest-earning product called Coinbase Lend, which the company had planned to launch in the coming weeks.
Bill Gates vehicle buys $2.2bn stake in Four Seasons from Saudi royal
Bill Gates has cemented his control of the Four Seasons luxury hotel group in a $2.2bn transaction with a Saudi royal that marks the technology billionaire's first big deal since he split his fortune with Melinda French Gates earlier this year.
Prince Alwaleed's Kingdom Holdings vehicle said it expected to realise a gain of $1.6bn on the 24 per cent stake that it is selling.
For Allbirds, Warby Parker, other fall IPOs, greed is out. Do-gooding is in.
The hottest companies launching IPOs are branding themselves as do-gooders. Companies use their noble mission as a way to both atrract funds and talents.
A new generation of companies, including startups such as Rent the Runway Inc., Chobani LLC, Warby Parker Inc. and Allbirds Inc., are on tap to go public this fall, people familiar with the matter say. They will be doing it with this message: It isn't just about the money. It is also about the mission.
"It's the wave of the future," said Ken Wallach, co-head of the global capital-markets practice at Simpson Thacher & Bartlett LLP. "It's everything from raising capital from like-minded investors to competition for millennial talent."
Source: WSJ, CNBC, Financial Times
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