Rivian plunges as EV makers lower production forecasts
40 minutes ago
Rivian Automotive (RIVN) shares fell on Friday after the electric vehicle maker missed third-quarter delivery expectations and lowered its full-year production outlook, citing parts availability.
Rivian said it manufactured 13,157 EVs and delivered 18,018 in the quarter. Analysts surveyed by Visible Alpha were looking for 12,080 deliveries. The company’s latest news extended the recent decline in its stock price, which has fallen from levels seen this summer following an investment from Volkswagen.
The company lowered its production forecast for 2024 due to a lack of supply of parts used to manufacture the R1S SUV and RCV commercial van. It added that the issue started in the third quarter and “has become more severe in recent weeks and continues to this day.”
Rivian now expects to manufacture between 47,000 and 49,000 EVs this year, down from its previous forecast of 57,000.
Rivian stock is down 7% in recent trading and has lost more than half its value since the beginning of the year.
-Bill McCall
Frontier, JetBlue and Spirit soar on reports of bankruptcy talks
1 hour 13 minutes ago
Shares of Frontier Group Holdings (ULCC) and JetBlue Airways (JBLU) rose on Friday after reports that low-cost airline rival Spirit Airlines (SAVE) is considering filing for bankruptcy. Spirit stock plummeted 25% after the market opened.
The Wall Street Journal reported that Spirit was in talks with bondholders and other creditors about the terms of a Chapter 11 filing, but noted that such a filing was not imminent. did. The newspaper reported that although bankruptcy negotiations are the focus, Spirit is also considering restructuring its balance sheet through an out-of-court transaction.
Kevin Carter/Getty Images
Spirit faces losses and declining revenue due to increased competition from low-cost carriers and larger airlines. Spirit’s $6.6 billion plan to merge with Frontier in 2022 fell through. Spirit later agreed to an acquisition by JetBlue, but it was scrapped later this year after regulators objected to the deal, citing antitrust concerns.
Frontier stock is up 21% in recent trading, while JetBlue is up 17%.
-Bill McCall
Government bond yields rise, expectations for interest rate cuts decline
2 hours 26 minutes ago
U.S. Treasury yields rose sharply on Friday morning as unexpectedly strong jobs data eased some concerns that the Fed would need to rescue a weakening labor market, pushing markets to cut interest rates. Expectations plummeted.
Following this report, market participants lowered their expectations for a rate cut. The probability that the Fed will cut interest rates by 50 basis points (0.5 points) at its next meeting in November has fallen from 30% to about 5%, according to federal funds futures trading data. Market participants are now pricing in a less than 30% chance that the Fed will cut rates by a total of 75 basis points by the end of the year, compared to a 56% chance that was priced in yesterday.
The revised forecast is in line with Wall Street’s view and that of Fed officials, who expect modest interest rate cuts in each of the two remaining meetings of the year in their quarterly economic forecasts. .
U.S. Treasury yields soared on the news, with the 10-year Treasury yield rising about 10 basis points to 3.95%, its highest level since mid-August. The yield on the two-year Treasury note, which is heavily influenced by market expectations for the Federal Reserve’s benchmark rate, rose 15 basis points to 3.87%, its highest level in a month.
-Colin Laidley
Major index stock price futures rise ahead of employment report
4 hours 19 minutes ago
Futures linked to the Dow Jones Industrial Average rose 0.1%.
TradingView
S&P 500 futures rose 0.3%.
TradingView
Nasdaq 100 futures rose 0.4%.
TradingView
