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Coffee With Greta: Inflation Party on Wall Street


DJIA Futures: +832 (+2.6%)

SPX Futures: +119 (+3.2%)

NASDAQ Futures: +438 (+4.1%)

Good morning friends!

Futures are surging after the October CPI came in lighter than expected.

Let’s get right to it!

Inflation Cools More Than Expected

U.S. inflation pressures cooled more than expected in October, in a sign the Fed’s rate hikes are starting to impact prices. 

The Bureau of Labor Statistics consumer price index rose 0.4% monthly last month and 7.7% year over year. 

That was cooler than economists’ expectations for a 0.6% monthly gain and 7.9% annual jump. 

That cooldown came despite higher food, gas, and rent prices. 

Grocery prices rose 0.4% monthly, 12.4% annually. 

Gas prices were up 4% monthly, 17.5% annually. 

And rent prices rose 0.8% monthly, 6.9% annually. 

Utility gas prices tumbled 4.6%, used car prices fell 2.4%, and apparel prices were down 0.7%. 

The core CPI, which excludes food and energy prices, was also cooler than expected. 

That index rose 0.3% monthly and 6.3% annually vs 0.5% monthly, 6.5% annually expected. 

Binance Backs Out of FTX Deal

The second-largest crypto exchange in the world is now on the brink of collapse after Binance ditched its plans to acquire FTX. 

The company reversed course on Wednesday after announcing a nonbinding deal on Tuesday to buy FTX amid a “significant liquidity crunch” at the exchange. 

In a tweet, Binance said, “In the beginning, our hope was to be able to support FTX’s customers to provide liquidity. But the issues are beyond our control or ability to help.

FTX CEO Sam Bankman-Fried has reportedly told investor the company is facing a shortfall of up to $8 billion from withdrawal requests.

Rivian Tops Q3 Expectations

Rivian (RIVN) shares are rallying 14.8% ahead of the open after reporting a smaller Q3 loss than expected. 

Here’s how the electric truck maker’s results compared to analysts’ estimates:

  • Adjusted loss per share: $1.57 vs $1.82 expected
  • Revenue: $536 million vs $551.6 million expected

Rivian reaffirmed its full-year production target for 25,000 vehicles.

But the company said it plans to reduce spending, now expecting full-year capital expenditures to total $1.75 billion vs $2 billion guidance after Q2. 

Rivian said it has over 114,000 preorders for its R1-series trucks and SUVs, up from 98,000 in August. 

Unity Software Shakes Off Revenue Miss

Unity Software (U) shares are up 10.9% in premarket trade despite reporting less revenue than expected in Q3.

Here’s how the software company’s results compared to analysts’ expectations:

  • Adjusted loss per share: $0.14 vs $0.15 expected
  • Revenue: $322.9 million vs $326.1 million expected

Unity forecast Q4 revenue between $425 million and $445 million.

The company also hiked its full-year outlook, now expecting revenue between $1.37 billion and $1.39 billion vs $1.3 billion to $1.35 billion previously. 

Beyond Meat Jumps Despite Q3 Miss

Beyond Meat (BYND) shares are up 6.6% ahead of the open despite missing Q3 expectations on the top and bottom line. 

Here’s how the meat substitute company’s results compared to analysts’ estimates:

  • Loss per share: $1.60 vs $1.14 expected
  • Revenue: $82.5 million vs $98.1 million expected

Revenue tumbled 22.5% compared to Q3 2021.

The miss prompted Beyond Meat to cut its guidance for the second straight quarter. 

The company now expects full-year revenue between $400 million and $425 million vs $470 million to $520 million previously.

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