Stock Market Today Mid-Morning Updates
On Wednesday, the Dow Jones Industrial Average is down by over 280 points with the latest consumer price index (CPI) being released today. The CPI soared 9.1% year-over-year, above the 8.8% Dow Jones estimate. This would mark another month of the fastest pace for inflation in the last 4 decades. Excluding volatile food and energy prices, core CPI increased by 5.9% compared to estimates of 5.7%. Also, energy prices surged 7.5% on the month and were up by a whopping 41.6% year-over-year.
Shares of Twitter (NYSE: TWTR) are up today after the company sued Elon Musk to hold him to the $44 billion deal. The lawsuit accuses Musk of breaching the contract that he signed to acquire the social media platform. Snap (NYSE: SNAP) will be introducing a feature that would allow NFT artists to showcase their designs on Snapchat, according to people familiar with the situation. Stitch Fix (NASDAQ: SFIX) is up today after news of Benchmark Capital’s Bill Gurley buying one million shares of the company.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down by 0.67% today while Microsoft (NASDAQ: MSFT) is also down by 1.51%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading lower on Wednesday. Among the Dow financial leaders, Visa (NYSE: V) is down by 1.87% while JPMorgan Chase (NYSE: JPM) is also down by 1.44%
Shares of EV leader Tesla (NASDAQ: TSLA) are up by 0.02% on Wednesday. Rival EV companies like Rivian (NASDAQ: RIVN) are also up by 1.43%. Lucid Group (NASDAQ: LCID) is trading lower by 0.21% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading higher today.
Dow Jones Today: U.S. Treasury Yield Rises To 3.0% After A Hotter-Than-Expected CPI
Following the stock market opening on Wednesday, the S&P 500, Dow, and Nasdaq are trading lower at 0.95%, 0.95%, and 0.96%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 0.99% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also down by 0.98%.
The benchmark 10-year U.S. Treasury yield is currently trading at 3.024% today after the CPI rose by more than expected. However, investors believe that inflation could be peaking soon. The price of Brent crude, the international benchmark continued to drop after today’s latest inflation report. It is currently trading at around $98 per barrel. This is a steep decline from $139 a barrel in March, close to an all-time high. This comes as renewed coronavirus curbs in China could have repercussions on the global economy.
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IronSource Stock Soars Following News Of $4.4 Billion Merger Deal With Unity Software
Among the major attention grabbers in the stock market today would be ironSource (NYSE: IS). Evidently, IS stock is now skyrocketing by over 50% at the opening bell today. For the most part, this is likely thanks to the company’s latest update on the mergers and acquisitions front. Getting straight into it, Unity Software (NYSE: U) will be acquiring the company through a $4.4 billion all-stock deal. According to the current terms of the agreement, every ordinary share of ironSource can be exchanged for 0.1089 shares of Unity common stock. By current estimates, this would translate to a roughly 74% premium over IS stock’s 30-day average exchange ratio.
For some context, ironSource is an upcoming name in the app development field. Through its business platform, app developers employ ironSource’s services to help power their apps. In detail, ironSource’s offerings serve to help clients with engaging with users alongside the monetizing and analysis of said content. Following this, they can work towards transforming their apps into high-quality and scalable businesses.
Speaking on Unity’s reasoning behind this purchase is CEO John Riccitiello. He states, “the combination of Unity and ironSource better supports creators of all sizes by giving them all the tools they need to create and grow successful apps in gaming and other consumer-facing verticals like e-commerce.” Riccitiello also adds, “this is a step further toward realizing our vision of a fully integrated platform that helps creators in every step of their RT3D journey. We look forward to welcoming Tomer Bar-Zeev, the CEO of ironSource, and the rest of ironSource’s talented team into the Unity family.” With all this in mind, investors would be keeping an eye on IS stock today.
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Delta Air Lines Loses Altitude Following Weaker-Than-Expected Quarterly Results
Another firm making waves in the stock market now would be Delta Air Lines (NYSE: DAL). On the whole, this seems to be a result of the company’s latest quarterly earnings update. According to the company’s press release, Delta’s earnings per share for the quarter is $1.44. Moreover, the company’s total quarterly revenue is $13.82 billion. For reference, this is versus consensus Wall Street figures of $1.73 and $13.57 billion respectively. Despite topping revenue forecasts on Wall Street, investors appear to be focusing on Delta’s miss on earnings per share. This is apparent as DAL stock is currently trading lower by over 6% now.
Providing some insight into the company’s current growth trajectory is Delta president, Glen Hauenstein. He explains, “With growing demand across our network in the June quarter, we recaptured higher fuel prices and delivered adjusted revenue recovery of 99 percent with unit revenues up 20.5 percent versus 2019. We also delivered another record quarter of American Express co-brand remuneration, up 35 percent from the June quarter 2019, reflecting growing brand preference and further diversification of our revenue base.” According to Hauenstein, should the current momentum in its bookings persist, Delta is expecting a quarterly revenue increase of between 1% to 5% this quarter. As such, investors could be considering buying DAL stock on its current weakness now.
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