Here are the most important news, trends and analysis that investors need to start their trading day:
- Wall Street looks steady ahead of key inflation data, after new highs
- GE to break up into 3 companies: aviation, health care, energy
- Bitcoin hits new all-time high above $68,000 as cryptos extend rally
- Roblox surges on rosy results; PayPal sinks on revenue miss
- AMC posts smaller-than-expected loss, but CEO says challenges remain
1. Wall Street looks steady ahead of key inflation data, after new highs
U.S. stock futures were relatively flat Tuesday, one day after the S&P 500 closed above 4,700 for the first time ever. The Dow Jones Industrial Average and the Nasdaq also rallied to record-high closes Monday as industrials and materials stocks got a boost from the late-Friday approval in the House of the Senate-passed infrastructure bill. President Joe Biden is expected to sign it.
Investors get October inflation data this week, with the producer price index Tuesday and the consumer price index Wednesday. Economists expect producer prices to have gained 0.6% last month after a 0.5% increase in September. On a year-over-year basis, the September PPI surged 8.6%, a record for a data series that goes back to November 2010.
2. GE to break up into 3 companies: aviation, health care, energy
U.S. industrial giant General Electric will split into three separate companies — aviation, health care and energy — following years of lackluster stock performance. GE plans to spin off the health-care unit by early 2023 and the energy unit by early 2024, the company said in a press release. Shares of GE surged more than 7% in premarket trading after the announcement. The name GE will live on with the aviation company after the move is complete, and GE CEO Larry Culp will continue to lead that unit.
3. Bitcoin hits new all-time high above $68,000 as cryptos extend rally
Bitcoin and ether hit new all-time highs Tuesday, before slightly trimming their gains, as cryptocurrencies extended their rallies. Bitcoin, the world's biggest digital currency, topped $68,500. Ether, the No. 2 crypto and native currency of Ethereum's blockchain, jumped above $4,800 for the first time ever. So far this year, bitcoin has gained more than 130% and ether has surged about 550%. The ProShares Bitcoin Strategy ETF, which launched in October and tracks bitcoin futures contracts, rose more than 8% on Monday and was up about 2% in Tuesday's premarket.
4. Roblox surges on rosy results; PayPal sinks on revenue miss
Shares of Roblox jumped more than 25% in Tuesday's premarket, the morning after the online gaming platform reported third-quarter results that impressed analysts. The service was unavailable between Oct. 28 and Oct. 31, a period that falls in the company's fourth quarter. Roblox started trading on the New York Stock Exchange in March following a direct listing.
PayPal shares sank more than 5% in Tuesday's premarket, the morning after the payments company reported lower-than-expected third-quarter revenue and warned on outlook. Third-quarter adjusted earnings beat estimates. PayPal also said it's teaming up with Amazon to let U.S. customers pay with its Venmo service at the e-commerce giant's checkout, starting in 2022.
5. AMC posts smaller-than-expected loss, but CEO says challenges remain
AMC Entertainment dropped almost 5% in premarket trading after its CEO said there are still Covid challenges ahead. The movie theater operator posted a third-quarter loss that was narrower than expected and revenue above estimates. The stock rose 8% in Monday's regular session before the company released after-the-bell results. AMC said all of its domestic theaters and 99% of its international theaters were open as of Sept. 30. Theaters all over the world were shuttered and restricted at different points during the pandemic. AMC has been at the center of this year's meme stock craze, skyrocketing more than 2,025% in 2021.
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