Post-SPAC names have had progress over the past 30 days, but have been falling for a year now
A plumber has been enjoying bouncing over the past 30 days, but she’s still far from the hole for 2022.
CNBC’s Post SPAC Index, made up of SPACs that successfully merged and debuted in public markets, rose 10.6% between July 26 and August 25. In that period, it outperformed the S&P 500, which was up 5.36%.
Sharp jumps in a few names helped raise the index. For example, Getty Images is up more than 217% in the last 30 days, while battery EV maker Enovix has added more than 136%.
However, SPAC companies as a whole suffered in 2022, as investors moved away from speculative companies with little profits. The CNBC Post SPAC Index is down nearly 46% for the year, compared to the S&P 500’s decline of nearly 12.6%.
SPACs, or special purpose buyouts, raise funding through an initial public offering and then use the proceeds to purchase a private company and launch it for the first time within two years.
SPAC divestitures rebounded as companies approached the two-year mark and struggled to bring companies to market in these unfavorable conditions: Fifteen SPACs have been liquidated so far – five of which occurred in August. Meanwhile, there were one liquidation in 2021 and two in 2020, according to SPACResearch.
–Darla Mercado, Gina Francola
Snowflake up 20% compared to revenue
snowflake The stock jumped more than 20% after beating revenue estimates in the last quarter. The cloud data platform provider posted revenue of $497 million, beating Refinitiv’s estimate of $467 million.
Snowflake said product revenue grew 83% year over year, and indicated that it expects the segment to generate between $500 and $505 million in the third quarter. For the full year, the company expects product revenue to be $1.91 billion to $1.92 billion.
Samantha Sobin, Ashley Cabot
S&P 500 Index Opens Higher
The S&P 500 opened higher on Thursday. The Dow Jones Industrial Average fell 68 points, or 0.21%, shortly after the bell. The S&P 500 and Nasdaq Composite were up 0.25% and 0.54%, respectively.
– Sarah Min
Unemployment claims go down
Initial filings for unemployment benefits fell last week, Labor Department He said Thursday.
Unemployment claims came in at 243,000 for the week ending August 20, down 2,000 from the previous week. It was also below the consensus estimate of 255,000, according to StreetAccount.
– Sarah Min
Revisions show a smaller drop in GDP in the second quarter
The first revision of the second-quarter GDP painted a less harsh picture of the US economy.
The Bureau of Economic Analysis said Thursday that gross domestic product shrank 0.6% in the second quarter. Advance estimates released last month showed a 0.9% drop.
There was a negative revision elsewhere in the report. The price index for total domestic purchases grew 8.4% during the quarter. The previous estimate showed a rise of 8.2%.
Despite high inflation and negative GDP growth, real GDP rose 1.4% in the second quarter.
— Jesse Pound
Bank of America says consumer confidence is recovering somewhat, but recession fears remain
Consumer confidence has eased somewhat from its lows earlier this year, but recession fears remain, according to Bank of America.
The US BofA consumer confidence index reached a three-month high of 31% as of August 21, after a period of lower gas prices and better-than-expected economic data, according to a note on Thursday.
However, the company said that the majority of respondents, 66%, expect inflation to rise over the next year, with 38% of those respondents anticipating a recession.
Respondents in higher income groups earning more than $50,000 a year said they were primarily concerned about savings and investments in a downturn.
Meanwhile, low-income earners said they care more about job security than their high-income counterparts, although savings remains their main concern, the report said.
– Sarah Min
Fed Chair George says demand ‘cools down’
Kansas City Fed President Esther George told CNBC’s Steve Liesman that “demand is slowing” in the US economy, but what you’re hearing from business leaders doesn’t match up with a recession.
George also said inflation remains “wide-based” and wants to see at least three “consistent months” of improved inflation data.
George declined to say whether he sees leaning about half a point or three-quarters of a point at next week’s Federal Reserve meeting. She said unemployment may have to rise for the Federal Reserve to bring down inflation.
— Jesse Pound
Peloton shares fall after profit loss
Peloton shares fell more than 15% in Thursday’s pre-market trading after The equipment maker reported a big loss. The results indicate six consecutive quarters of reported losses from the company as it attempted to implement the turnaround plan.
The stock rose more than 20% the day before after news of its partnership with Amazon.
Sarah Main, Lauren Thomas
Autodesk surges after winning profits
Autodesk shares rose more than 9% after the software company reported quarterly earnings and revenue that beat analysts’ expectations.
The company earned $1.65 per share on revenue of $1.24 billion. Analysts polled by Refinitiv expected earnings of $1.57 per share on revenue of $1.23 billion. Autodesk’s operating margin also came in slightly above expectations.
Teen jumps after Ron Baron reveals a new purchase
Billionaire investor Ron Barron has revealed on “Squawk Box” that he has purchased shares in medical apparel company Figs in recent months.
The Baron dubbed the company “lululemon of health,” referring to one of the fastest growing apparel companies of the past decade.
Figs shares are up in premarket trading after Baron’s appearance. Shares are up more than 13%, having changed little before Barron spoke.
Nvidia drops after weak earnings report
Shares of chip maker Nvidia fell 4% in the primary market after the company reported quarterly results that missed analyst expectations.
Nvidia earned 51 cents per share on revenue of $6.7 billion. Analysts expected the company to report earnings of $1.26 per share on revenue of $8.10 billion, according to Refinitiv.
“Macroeconomic headwinds around the world have led to a sudden slowdown in consumer demand” for the company’s gaming products, Nvidia Chief Financial Officer Colette Kress said on a call with analysts.
—Fred Imbert, Jordan Novett
European markets ahead of Jackson Hole
pan europe Stoxx 600 . Index It gained 0.7% in early trading, with Core Resources adding 1.2% to lead the gains as all major sectors and stock exchanges entered positive territory.
The German economy grew unexpectedly in the second quarter, new figures confirmed Thursday, despite fears of a recession amid rising inflation and threats to energy supplies after the Russian invasion of Ukraine.
– Elliot Smith
CNBC Pro: Why Goldman Sachs thinks FAANG stock is short
CNBC Pro: Morgan Stanley and UBS prefer these ‘cheap’ stocks, even in a recession
Recession risk is increasing, according to Canaccord GenityAnalysts led by Tony Dwyer.
“Our indicators point to the potential for an increasing recession as we move into next year, especially if the Fed continues to raise interest rates,” according to a research note dated August 22.
Professional subscribers can Read the story here.
– Xavier Ong
Tesla stock is headed for a split
Tesla’s stock is set to split 3-for-1 on Wednesday after the market closesThis means that shareholders will receive two new shares each when trading begins on Thursday.
The automaker’s shares rose 0.22% on Wednesday. The latest stock split was approved during the company’s annual meeting on August 4.
Splitting the stock doesn’t change anything fundamental about the company, but it could make it more affordable for some retail investors to buy.
– Carmen Renick
Snowflake Jumps, Salesforce Falls
Quarterly earnings released after the bell was sent on Wednesday Shares of some airlines.
snowflake It jumped more than 18% after beating Wall Street estimates. sales forceOn the other hand, it posted strong quarterly results but gave weaker-than-expected quarterly results and full-year guidance on earnings and revenue, sending its stock down nearly 7%.
– Carmen Renick
Stock futures contracts open
US stock futures opened flat on Wednesday after gaining all three major averages in the regular trading session.
Dow Jones Industrial Average futures rose 8 points, or 0.02%. S&P 500 and Nasdaq 100 futures rose 0.14% and 0.13%, respectively.
– Carmen Renick
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