Stock Market Today Mid-Morning Updates
On Wednesday, the Dow Jones Industrial Average is up by 220 points after the first of two key inflation reports this week showed that consumer prices were still at its highest levels since the 1980s. President Joe Biden says that he will consider dropping some of the tariffs imposed against Chinese imports to help control rising consumer prices in the U.S, a tariff from the Trump administration. The White House is reviewing penalties on items like diapers to clothing and furniture.
Shares of Wendy’s (NASDAQ: WEN) were down by over 10% on today’s opening bell after it missed its first-quarter earnings. The company is seeing headwinds from higher costs for supplies and labor. Also, Roblox (NYSE: RBLX) was up today despite posting a wider-than-expected loss for its latest quarter. It also says that it expects losses to continue in the short term as expenses rise and pandemic-induced demand subsides. Luxury goods retailer RealReal (NASDAQ: REAL) is down today despite reporting better-than-expected sales.
Among the Dow Jones leaders, shares of Apple are down by 0.87% today while Microsoft (NASDAQ: MSFT) is also down by 0.50%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading higher on Wednesday. Among the Dow financial leaders, Visa (NYSE: V) is up by 0.85% while JPMorgan Chase (NYSE: JPM) is also up by 1.68%.
Shares of EV leader Tesla (NASDAQ: TSLA) are down by 1.53% on Wednesday. Rival EV companies like Rivian (NASDAQ: RIVN) are also down by 3.73%. Lucid Group (NASDAQ: LCID) is also down by 2.89% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading higher today.
Dow Jones Today: U.S. Treasury Yields Rises After Consumer Price Index Comes In Red Hot
Following the stock market opening on Wednesday, the S&P 500, Dow, and Nasdaq are trading higher at 0.57%, 0.73%, and 0.04%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up by 0.11% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also up by 0.57%.
The benchmark 10-year U.S. Treasury yield surges above 3% on Wednesday after the government’s April consumer price index rose more than expected at 8.3% year-over-year. Excluding volatile food and energy prices, core CPI still rose more than expected as well at 6.2%. Inflation seems to be the biggest threat to an economic recovery that began early in the pandemic. Oil prices are also seen as a source of inflation in the economy. West Texas Intermediate crude, for instance, is up by over 3% today at $103 per barrel.
[Read More] Top Stock Market News For Today May 11, 2022
Coinbase Stock Slips After Falling Short Of Earnings Estimates And Declining Revenue
Coinbase (NASDAQ: COIN) appears to be feeling the heat during this earnings season. After yesterday’s closing bell, the posted less-than-ideal results in its quarterly financial update. In brief, the crypto exchange platform operator posted a loss of $1.98 per share on revenue of $1.17 billion. Regarding revenue, Coinbase is noticeably short of Wall Street’s projections of $1.48 billion. Year-over-year, the company’s total revenue is down by 27%. Namely, this is likely due to the recent series of sell-offs in the crypto market over the past few months.
Just earlier this week, Bitcoin (BTC) hit a multi-month low after dipping below the $30,000 mark. This movement alongside the current volatility in the broader stock market would, in theory, impact Coinbase’s bottom lines amidst lower trading volume. In fact, Coinbase’s retail monthly transaction users (MTUs) are down by 23% quarter-over-quarter. At the same time, the company’s total trading volume is also seeing a decline from $547 billion to $309 billion over the same period.
Nevertheless, the company had this to say about its overall trajectory now. “While we continue to invest and enhance our core investment platform, the application era of crypto is upon us, led by NFDs and decentralized finance, and we are increasingly focusing our efforts on these market opportunities.” Time will tell if this can translate to long-term sustainable growth for COIN stock.
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Unity Stocks Slumps Towards New 52-Week Lows Following Revenue Miss And Disappointing Outlook
Another head-turner in the stock market today would be Unity Software (NYSE: U). Evidently, U stock is currently trading towards new 52-week lows at today’s opening bell. As it stands, the company’s shares are looking at losses of over 25% now. By and large, this seems to also be a result of its latest financial release. For starters, Unity reported a loss per share of $0.08 alongside revenue of $320.13 million. For reference, this is in comparison to consensus analyst estimates of a $0.08 loss per share and revenue of $321.17 million. Overall, Unity’s results are somewhat as expected by Wall Street. However, the real reason behind U stock’s steep decline today could be its growth outlook.
For now, the company is expecting a total revenue of between $290 million to $295 million for the current quarter. To point out, this is significantly lower than consensus Wall Street targets of $359.65 million. Also, this represents a 6% year-over-year jump for Unity on this front. Moreover, the company’s full-year revenue guidance is now at $1.35 billion to $1.45 billion. This would make it just shy of current analyst forecasts of $1.49 billion.
Even as the company provides more conservative growth estimates, its current momentum could be worth considering. Speaking on this in further detail is CEO John Riccitiello. He highlights, “Unity delivered record quarterly revenue in the first quarter of 2022, the highest in the company’s history … with Create over-performing at 65% year-on-year growth.” All this, according to CFO Luis Visoso, is thanks to Unity actively growing its customer base across new industries while expanding its business with existing clients. As such, some would argue that U stock could be worth considering in the stock market now.
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