Here are five things you must know for Thursday, November 11:
1. -- Stocks Futures Rebound From Inflation Shock
U.S. equity futures bumped higher Thursday, while Treasury yields held onto an overnight surge and the dollar raced to a sixteen month high against its global peers, as investors sifted through the impact of the fastest reading of U.S. inflation in more than 30 years.
October CPI was pegged at 6.2% by the Bureau of Labor Statistics, a 1990 high that not only roared past Street forecasts but also suggested the Federal Reserve may need to alter its course on both tapering and rate hikes if the price pressures don't ease into early next year.
Still, with corporate profits continuing to impress, the all-important services portion of the economy running at a record pace and a trillion dollars in new infrastructure stimulus having passed President Joe Biden's desk, investors appear content to drive stock prices higher heading into the start of trading Thursday.
Futures contracts tied to the Dow Jones Industrial Average are indicating a 70 point opening gain while those linked to the S&P 500 are priced for an 18 point move to the upside.
Futures tied to the tech-focused Nasdaq Composite are indicating a 100 point advance even as benchmark 10-year Treasury note yields hold at 1.57% following last night's surge. Bond markets will remain closed Thursday as part of the Veteran's Day Observance.
2. -- Elon Musk Sells 5 Billion Tesla Shares
Tesla (TSLA) - Get Tesla Inc Report shares moved higher in pre-market trading after Securities and Exchange Commission filings revealed founder and CEO Elon Musk has sold around 5 billion in shares of the clean-energy carmaker over the past few days.
Musk, who asked his 62 million Twitter followers if he should sell some of his Tesla stake in order to create a tax liability, dumped 3.6 million shares -- valued at around $4 billion -- while offload another 934,00 for $1.1 billion to cover taxes linked to an options conversion.
Collectively, the sales amount to around 3% of his Tesla stake, which is estimated at around $265 billion. Musk had indicated he could sell as much as 10%, but the SEC papers also noted that at least some of the sales were flagged as early as September.
Tesla shares were marked 4% higher in pre-market trading to indicate an opening bell price of $1,108.00 each.
3. -- Disney Posts Disappointing Subscriber Gains
Walt Disney (DIS) - Get Walt Disney Company Report shares slumped lower in pre-market trading after the entertainment and media icon posted weaker-than-expected fourth quarter earnings and disappointing additions to its Disney+ streaming service.
Disney added 2.1 million new subscribers to its two-year old Disney+ over the three months ending in September, the group's fiscal fourth quarter, notably shy of the FactSet forecast of around 10.2 million.
The tally came alongside fourth quarter earnings of 37 cents per share, which missed Street forecasts by 15 cents, and softer-than-expected overall revenues of $18.53 billion.
"Despite a shortfall in the near-term subscriber expectation, management reiterated its F2024 Disney+ subscriber guidance, which we view as the most important metric for the stock," said BMO Capital Markets analyst Daniel Salmon. "Near-term margin for the core business, however, is expected to be below expectations, driven by incremental investments, tight labor costs, and inflation."
Walt Disney shares were marked 4.6% lower in pre-market trading to indicate an opening bell price of $166.40 each.
4. -- Beyond Meat Plunges After Weak Q4 Outlook
Beyond Meat said current quarter sales would likely come in between $85 million and $110 million, well shy of the Refinitiv consensus of $132 million, as restaurants and grocery stores pare back orders amid softer consumer demand.
Labor, transportation and logistics issues linked to COVID-19, as well as a severe storm in Pennsylvania, clipped third quarter profits, too, with Beyond Meat reporting a wider-than-expected loss of 87 cents per share on sales of $106.4 million.
"While revenue expectations in the out year are perhaps now reset to levels that offer upside, gross margins remain a source of potential risk, in our view, given increasing competition, lingering inflation and potential for further supply chain disruptions," said Canaccord Genuity analyst Bobby Burleson.
Beyond Meat shares were marked 18.9% lower in pre-market trading to indicate an opening bell price of $76.65 each.
5. -- Rivian Extends Gains After $100 Billion Nasdaq Debut
Rivian Automotive (RIVN) - Get Rivian Automotive, Inc. Class A Report shares extended gains in pre-market trading following it debut on the Nasdaq that marked the biggest IPO of the year and lifted the value of the electric carmaker to more than $100 billion.
Rivian, which priced its IPO at $78 per share, opened at $106, and hit an intra-day high of $119.46, before easing into the close and finishing the session at $110.73. Still, without having sold a car nor incurred and revenue, the Irvine, California-based group -- which includes retail giant Amazon as one of its key backers -- is now worth more than General Motors (GM) - Get General Motors Company Report.
Rivian plans to produce around 1,200 cars from its Normal, Illinois-based plant by the end of the year, with an aim to hit an annual production rate of 150,00 by 2023. GM produced 6.8 million cars last year.
Rivian shares were marked 9% higher in pre-market trading to indicate an opening bell price of $109.75 each.