5 things to know before the stock market opens Wednesday
Here are the most important news, trends and analysis that investors need to start their trading day:
Wall Street looks to continue lower, so does recently dropping TeslaOctober consumer prices surged at fastest pace in decadesRivian’s IPO pricing values electric vehicle maker above $66 billionCoinbase shares sink after crypto exchange misses on revenueGoogle loses EU antitrust battle, court upholds $2.8 billion fine
1. Wall Street looks to continue lower, so does recently dropping Tesla
A trader works on the floor of the New York Stock Exchange (NYSE) on November 05, 2021 in New York City.
Spencer Platt | Getty Images
U.S. stock futures fell Wednesday after this week’s second major inflation report showed consumer prices soaring last month. Shares of Tesla fell in premarket trading after a three-session losing streak that included Tuesday’s nearly 12% nosedive. The stock, which has soared 45% in 2021, has been under pressure since the weekend, when CEO Elon Musk proposed selling 10% of his shares in the electric vehicle maker. The broader market Tuesday saw the Dow Jones Industrial Average, the S&P 500 and the Nasdaq all drop from record high closes in the previous session.
2. October consumer prices surged at fastest pace in decades
A pedestrian carries Zara shopping bags in San Francisco, California, U.S., on Thursday, Sept. 16, 2021.
David Paul Morris | Bloomberg | Getty Images
One day after the October producer price index showed a surge at a record clip year over year, the government said Wednesday morning the October consumer price index jumped a great-than-expected 6.2% from last year, the fastest pace in more than 30 years. Due the Veterans Day holiday on Thursday, the government issued its weekly look at initial jobless claims one day early, reporting a new Covid-era low of 267,000, essentially matching estimates.
3. Rivian’s IPO pricing values electric vehicle maker above $66 billion
Rivian employees stand beside the new all-electric pickup truck by Rivian, the R1T, as it sits at one of its facilities on November 09, 2021 in the Brooklyn borough of New York City.
Spencer Platt | Getty Images
Rivian Automotive, the electric vehicle company backed by Amazon and Ford, is set to begin trading Wednesday on the Nasdaq, under the ticker symbol RIVN. The EV maker Tuesday evening priced its initial public offering at $78 per share, above the increased expected range, for a value $66.5 billion. Rivian is worth almost as much as Ford’s market value of $79 billion and General Motors’ $85 billion. That’s before the EV company has even started generating real revenue.
4. Coinbase shares sink after crypto exchange misses on revenue
Monitors display Coinbase signage during the company’s initial public offering (IPO) at the Nasdaq MarketSite in New York, on Wednesday, April 14, 2021.
Michael Nagle | Bloomberg | Getty Images
Coinbase shares dropped roughly 10% in Wednesday’s premarket, the morning after the nation’s largest crypto exchange reported lower-than-expected revenue of $1.31 billion in the third quarter. Coinbase earned $1.62 per share. Coinbase said monthly transacting users and trading volume fell from the prior period. Much of the company’s success hinges on the performance of digital assets like bitcoin, which had a rough summer. On Monday, it reached a new all-time high above $68,000.
5. Google loses EU antitrust battle, court upholds $2.8 billion fine
The European Union flag is seen with Google’s logo.
Jaap Arriens | NurPhoto | Getty Images
The EU’s second-highest court ruled Wednesday that the European Commission was right to fine Google $2.8 billion for an antirust breach — in what represents a landmark moment for European Union policy that could impact the business models of major tech players. The European Commission, the executive arm of the European Union, said in 2017 that Google favored its own comparison shopping services and fined the Alphabet unit $2.8 billion. Wednesday’s verdict can be appealed and taken to the EU’s highest court. The European Commission and Google were not immediately available for comment.