Here are the most important news, trends and analysis that investors need to start their trading day:
- Wall Street looks higher, one day after inflation-driven selling
- Disney missed numbers across the board, streaming growth slowed
- Elon Musk sells around $5 billion of Tesla stock, shares pop
- Rivian's premarket gains give EV marker bigger market cap than GM
- Affirm soars after beating on revenue, expanding Amazon deal
Dow futures bounced Thursday despite the premarket drop in Dow stock Disney on disappointing quarterly results. Wall Street sank Wednesday after October's consumer price index showed the biggest annual jump in more than 30 years, triggering a spike in the 10-year Treasury yield to 1.57%. U.S. bond trading is closed Thursday for Veterans Day. The Dow Jones Industrial Average and the S&P 500 on Wednesday lost less than 1%. In a tech-led sell-off, the Nasdaq fared much worse, losing 1.7%. All three stock benchmarks recently logged a flurry of record closes, the latest were on Monday. Bitcoin hit another all-time high Wednesday, near $69,000, before pairing its gains. On Thursday, it was down but trading above $65,000.
Shares of Disney dropped 5% in Thursday's premarket, the morning after the entertainment giant reported adjusted earnings of 37 cents per share on $18.53 billion in revenue in its fiscal fourth quarter. Both measures were short of expectations. Wall Street was more bullish than Disney heading into earnings, expecting 125.4 million total Disney+ subscribers at the end of the fourth quarter. The company fell short, adding 2.1 million Disney+ subscribers for total of 118.1 million. Overall, Disney reported 179 million subscriptions across Disney+, ESPN+ and Hulu at the end of the fourth quarter. That's 50% higher than last year.
Elon Musk sold nearly $5 billion in Tesla stock, according to financial filings out Wednesday evening. The Tesla CEO still holds more than 166 million shares. Musk sold these shares in part to satisfy tax obligations related to an exercise of stock options.
Before the plan was made public, Musk asked his 62.5 million Twitter followers whether he should sell. Following Saturday's Twitter poll, Tesla saw a two-session slump of more than 15%, before rebounding over 4% on Wednesday. Tesla was up about 2% in premarket trading.
Rivian Automotive shares rose another 6.5% in Thursday's premarket, one day after debuting up 29%, giving the Amazon- and Ford-backed electric vehicle start-up a market valuation of $86 billion after one of the biggest IPOs this year. Rivian's market value is higher than Ford's — and if the premarket gains were to hold, it would be bigger than General Motors, too. However, Rivian is still worth a fraction of EV pioneer Tesla, which has a market cap of more than $1 trillion. Amazon's 20% stake in Rivian is now worth about $17 billion, and Ford's 12% stake is valued at more than $10 billion.
Shares of Affirm jumped nearly 25% in Thursday's premarket, the morning after the digital "buy now, pay later" company beat expectations with fiscal first-quarter revenue. It also announced an expansion of its partnership with Amazon. As part of the new agreement with Amazon, Affirm will serve as the sole third-party buy now, pay later option for the e-commerce giant in the U.S. Amazon will also integrate Affirm into its digital wallet in the U.S. However, credit card companies will still be able to offer buy now, pay later options on Amazon in the future.