Futures tracking Wall Street's main indexes fell on Tuesday as optimism over potential rate cuts from the Federal Reserve next year waned, with investors on tenterhooks ahead of more commentary from central bank officials.
After a stellar rally last week driven by tumbling Treasury yields, equities have lost momentum in recent days as investors await commentary by Fed policymakers for any signs of a pushback against expectations that U.S. interest rates have peaked.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 99 points, or 0.29%, S&P 500 e-minis were down 11.75 points, or 0.27%, and Nasdaq 100 e-minis were down 19.50 points, or 0.13%.
Pre-Market Movers
Tesla Inc. (TSLA) - Tesla will raise the price of its Model Y variants in China following a refresh of the car in October, making yet another tweak to pricing in the world’s biggest and most competitive electric-vehicle market. Tesla shares dropped 0.8% in premarket trading.
Nvidia (NVDA) - Baidu ordered artificial intelligence chips from Huawei this year, two people familiar with the matter said, adding to signs that U.S. pressure is prompting Chinese acceptance of the firm's products as an alternative to Nvidia's, Reuters reported. Nvidia shares dropped 0.5% in premarket trading.
Uber Technologies (UBER) - Uber reported its second-ever operating profit in the third quarter, but revenue of $9.3 billion missed analysts’ estimates of $9.5 billion. The company also reported third-quarter gross bookings of $35.3 billion, above Wall Street estimates of $34.6 billion and an increase of 21% from $29.1 billion a year earlier. The stock was down 1.2% in premarket trading.
Alteryx (AYX) - Alteryx was rising 18.3% after the software company reported a narrower-than-expected third-quarter loss and sales of $232 million that beat analysts’ estimates.
Tripadvisor (TRIP) - Tripadvisor rose 10.6% after the online travel platform reported adjusted earnings and sales in the third quarter that beat Wall Street expectations. Sales of $533 million rose 16% from a year earlier.
Datadog Inc. (DDOG) - Datadog shares were roaring 24% higher in premarket action Tuesday after the software company, which makes tools for monitoring infrastructure and application performance, showed upside with its latest quarterly results and delivered a better-than-expected forecast.
Carbon Revolution(CREV) - Carbon Revolution jumped another 50% in premarket trading Tuesday after soaring 1010% in the past two days. The shares jumped 273% on Friday and soared 198 on Monday. Carbon Revolution stock went public through a merger with special purpose acquisition company (SPAC) Twin Ridge Capital Acquisition Corp. The company’s focus is on the creation of lightweight carbon fiber wheels.
Vertex Pharmaceuticals (VRTX) - Vertex Pharmaceuticals reported third-quarter adjusted earnings of $4.08 a share, topping Wall Street expectations of $3.92. Revenue rose 6% to $2.48 billion but just missed forecasts. Vertex said the revenue gains primarily were driven by the “continued performance” of its cystic fibrosis drug Trikafta in the U.S. Vertex raised its full-year guidance for cystic-fibrosis product revenue to $9.85 billion, versus prior guidance of $9.7 billion to $9.8 billion. The stock declined 1.2%.
International Flavors & Fragrances (IFF) - International Flavors & Fragrances announced an agreement to continue a previous cooperation agreement with Icahn Capital LP and its affiliates. The company, which makes flavors and fragrances used in food, beverage, personal care and household products, also swung to a profit in the third quarter from a year-earlier loss. The shares gained 6% in premarket trading.
UBS (UBS) - UBS reported a third-quarter loss primarily on costs related to the integration of Credit Suisse. But shares of the Swiss bank were rising 2.1% after UBS reported that revenue jumped 42% to nearly $11.7 billion and topped expectations. UBS closed its acquisition of Credit Suisse in June.
RingCentral (RNG) - The provider of cloud-based communications services, posted third-quarter adjusted earnings and revenue that topped analysts’ estimates and raised its forecast for the year. The stock was up 8.3%.
Sanmina (SANM) - Sanmina was down 10.4% after the electronics manufacturing company said it expects fiscal first-quarter adjusted profit of $1.20 to $1.30 a share, below analysts’ estimates of $1.52, and revenue of $1.85 billion to $1.95 billion, below estimates of $2.19 billion.
D.R. Horton (DHI) - The largest publicly traded home builder in the U.S., reported fiscal fourth-quarter earnings of $4.45 a share on revenue of $10.5 billion. Analysts had expected the company to report earnings of $3.94 a share on revenue of $10 billion. D.R. Horton also raised its quarterly dividend to 30 cents a share from 25 cents. The stock was up slightly.
Market News
WeWork Goes Bankrupt, Signs Pact With Creditors to Cut Debt
Former high-flying startup WeWork Inc. filed for bankruptcy listing nearly $19 billion dollar of debts, a fresh low for the co-working company that struggled to recover from the pandemic.
The New York-based company said it had struck a restructuring agreement with creditors representing roughly 92% of its secured notes and would streamline its rental portfolio of office space, according to a statement. The Nov. 6 Chapter 11 filing in New Jersey listed assets of $15 billion.
WeWork’s collapse into bankruptcy is the culmination of a years-long saga for the company, which was once the biggest office tenant in Manhattan. Its sudden rise and precipitous fall have captivated Wall Street and Silicon Valley alike.
Tesla to Raise Model Y Prices in China Following Style Revamp
Tesla Inc. will raise the price of its Model Y variants in China following a refresh of the car in October, making yet another tweak to pricing in the world’s biggest and most competitive electric-vehicle market.
After the price of the performance version was increased on Oct. 27, other Model Y variants will also be adjusted, though the timing of the changes hasn’t been decided, a China-based Tesla representative told Bloomberg News.
Tesla set off a price war in China a year ago by slashing prices on its EVs as sales growth started to slow, prompting many others in the market to follow suit. More recently it has made some upward adjustments too, including last month’s 14,000 yuan ($1,920) increase for the performance Model Y variant.