Wall Street Today | Rivian Raises Production Forecast as Results Surprise Wall Street
MACRO
Harker Says Fed May Now Be at Point Where It Can Hold Steady
Federal Reserve Bank of Philadelphia President Patrick Harker said the US central bank may be able to cease interest-rate increases, barring any surprises in the economy, though rates would need to stay at their current elevated levels for some time.
“Absent any alarming new data between now and mid-September, I believe we may be at the point where we can be patient and hold rates steady and let the monetary policy actions we have taken do their work,” Harker, who holds a vote on policy decisions this year, said Tuesday in remarks prepared for an event organized by the Philadelphia Business Journal.
Treasury Auctions Off to Good Start, With Strong Demand for Three-Year Notes
So far, so good for this week’s historic Treasury debt auctions — following trepidation last week when the announced sizes topped most bond dealer expectations.
Tuesday’s $42 billion sale of three-year notes produced a lower-than-expected yield, a sign that demand was stronger than anticipated. It also wound up almost entirely in the hands of investors, who obtained a record share relative to dealers.
US Small-Business Optimism Advances to Highest in Eight Months
US small-business sentiment rose in July to an eight-month high amid a broader upswing in optimism about the outlook for the economy.
An index maintained by the National Federation of Independent Business rose by 0.9 point to 91.9, the group said Tuesday. The share of small-business owners expecting better business conditions over the next six months rose to the highest level since August 2021.
U.S. Wholesale Inventories Slipped in June
U.S. wholesale inventories fell more than expected in June, suggesting merchants are liquidating stock as demand weakens, according to data from the Commerce Department published Tuesday.
SECTORS
Bank Stocks Slide After Moody’s Downgrade
Bank stocks fell Tuesday after Moody’s Investors Service downgraded 10 regional banks, renewing concerns about the health of the sector amid higher interest rates and recent failures.
The reaction suggests the sector remains vulnerable to the problems that stirred a panic this spring after the failures of several midsize lenders: devalued bonds, jittery investors, deposit withdrawals and higher costs.
COMPANY
Rivian Raises Production Forecast as Results Surprise Wall Street
The EV start-up $Rivian Automotive (RIVN.US)$ delivered second-quarter results that beat Wall Street estimates and raised its forecast for production for the full year.
Tuesday evening, Rivian reported a per-share loss of $1.08 from sales of $1.1 billion, while Wall Street had been looking for a per-share loss of $1.43 from sales of $1.1 billion. A year ago, Rivian lost $1.62 a share from sales of just $95 million.
Upstart’s Stock Plunges After Earnings as Forecast Comes in Light
Shares of $Upstart (UPST.US)$ Holdings were sinking in after-hours trading Tuesday after the lending company fell short of Wall Street’s expectations with its revenue and earnings forecasts for the current quarter.
SoftBank Plans New AI Bets After First Investment Gains in 18 Months
SoftBank Group posted its first investment gains in a year and a half and said it would cautiously press ahead with new bets in artificial-intelligence-related fields.
Tesla CFO Kirkhorn Exits With $590 Million Fortune
Zachary Kirkhorn, who stepped down as $Tesla (TSLA.US)$’s chief financial officer on Monday, amassed a net worth of $590 million during his four-year stint in the role, according to data compiled by Bloomberg. The number is comprised mainly of Tesla shares and options he received as compensation.
Still, the fortune accumulated by the carmaker’s outgoing designated “master of coin” pales in comparison to that of CEO and “technoking” Elon Musk, whose $230.6 billion net worth is the largest in the world, according to the Bloomberg Billionaires Index.
Nvidia CEO Unveils New AI Chip With Increased Capabilities
On Tuesday, $NVIDIA (NVDA.US)$ announced the next-generation version of its GH200 Grace Hopper Superchip. The update will incorporate the world’s first use of HBM3e advanced memory technology, offering 1.7 times the memory capacity and 1.5 times the memory bandwidth of Nvidia’s current top-of-the-line H100 chip.
AMC Reported Per-Share Results, Revenue Beat Expectations as Attendance and Per-Patron Revenue Climbs
Shares of $AMC Entertainment (AMC.US)$ reported second-quarter results that beat expectations, amid a 12% increase in attendance and higher per-guest spending, which "far exceeded pre-pandemic norms."
The company swung to net income of $8.6 million, or 1 cent a share, from a loss of $121.6 million, or 12 cents a share, in the year-ago period.
Eli Lilly’s Stock Soars Toward Best Day in 23 Years After Strong Earnings, Upbeat Mounjaro Outlook
$Eli Lilly and Co (LLY.US)$ investors were having their best day in more than two decades on Tuesday, after the drug giant reported second-quarter earnings that beat expectations, and after favorable trial results for rival obesity drug helped boost prospects for Lilly’s Mounjaro.
Source: Bloomberg, Dow Jones, CNBC
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lightfoot : My evaluation IR do not coincide with strengthening US dollar. it is a hammer to financing. To grow, businesses need loans. letters of credit to expand. To pay debts. you could use the module of our country to gauge how it works. We will never touch the principal on Biden's incompetent borrowing and spending. How stupid is this president