Rivian is rushing in after hitting a new high production
Shares in the electric car industry Rivian It jumped nearly 9% in pre-market trading Tuesday after the company announced Monday that it produced more than 7,000 vehicles in the third quarter.
This is the company’s highest quarterly production to date. The company also said it was on track to meet production targets for 2022 after having to halve the target earlier in the year due to supply chain issues.
– Carmen Renick
BNY Mellon Investment Management Says ‘Cash Probably Isn’t Rubbish’
Conventional wisdom suggests that holding cash in an inflationary environment is not recommended, but “cash is probably no longer a waste,” according to Aninda Mitra, head of macro and investment strategy in Asia at BNY Mellon Investment Management.
Asked if cash and Treasury bills look attractive given the inverted yield curve, Mitra said he agreed, stressing the benefits of holding cash in US dollars.
“I think this is an area that still looks good, it’s an extension of the overall dollar long story,” he said.
The US dollar index has risen steadily this year, from below 98 to above 111 as of Tuesday.
CNBC Pro: Here’s what’s next for stocks, according to Wall Street professionals
We’re finally over September, to the relief of many stock investors who endured a difficult month, as all major US indices posted heavy losses.
With a historically weak month now firmly in the rearview mirror, what is the outlook for stocks as we enter the fourth quarter of the year?
CNBC Pro has combed through the research to see what Wall Street thinks.
Professional subscribers can Read more here.
– Xavier Ong
See more Q4 earnings guidance than actual Q3 numbers, S&P Global says
Standard & Poor’s Global believes that the fourth-quarter earnings forecast that companies provide when reporting third-quarter results will be more important to future market direction than the actual third-quarter numbers themselves.
“October is bringing in profits, with third-quarter estimates already down 7%, and the whisper numbers are a bit more than that,” Howard Silverblatt, chief index analyst, wrote over the weekend. “The biggest concern (from the actual numbers for the third quarter, when consumers were still spending) is the guidance for the fourth quarter, where consumers have fallen, inflation has continued, and the Fed’s ‘adjustments’ will have a greater impact.”
Third-quarter earnings for the S&P 500 are expected to grow 6.1% compared to the same quarter last year, and about 18% during the second quarter of 2022, according to S&P Global.
Next year estimates are for 14.3% earnings growth through 2022, and a P/E ratio of 15.0%.
Silverblatt also looked at the typical performance of the S&P 500 in October. “Historically, the index has gained 57.4% of the time, with an average gain of 4.18% for bullish months, average decrease of 4.67% for low months, and an average overall decrease of 0.46%,” he wrote.
– Scott Schneper
Stocks moving after hours: Rivian, Dynatrace, and more
Some stocks were moving after hours on the news, including:
- Rivian The electric car maker rose 2.7% after announcing after the bell that production had met expectations in the quarter ending September 30.
- Dynatrace The software intelligence firm increased 4.6% after being upgraded to a purchase from JPMorgan. The stock rose 3% during normal trading.
See the full list over here.
– Alex Haring
Futures open a bit
The three major indices opened for trading an hour later, slightly higher on Monday.
Nasdaq 100 futures saw the biggest gains at the opening, up 0.26%.
S&P 500-related futures rose 0.17%. Dow Jones Industrial Average futures rose 31 points, or 0.10%.
– Alex Haring
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