The major averages are firmer, having reversed losses seen overnight. The stock market appears to have become more comfortable with sharply rising prices, at least for now, as has the bond market with the record gain in annual producer prices growth having been taken in stride. The Nasdaq closed with nearly a 3% drop yesterday, while the S&P 500 and Dow each lost about 2%, but all three of the major averages were up about 1% or more at noon today.
ECONOMIC EVENTS: In the U.S., the Producer Price Index beat estimates with April gains of 0.6% for the headline and 0.7% for the core reading. On a 12-month basis, the headline index surged to an all-time high 6.2% year-over-year growth rate, up from 4.2% previously, while the core reading pointed to 4.1% year-over-year growth, up from 3.1% in March. Initial jobless claims fell 34,000 to 473,000 in the week ended May 8.
TOP NEWS: Shares of Alibaba (BABA) are 5% lower near noon in New York trading after the company reported fiscal Q4 results prior to this morning's opening bell. "Our overall business delivered strong growth on a healthy foundation, with the Alibaba Ecosystem generating a record US$1.2 trillion in GMV during this fiscal year. Such achievements were built on top of clear value propositions that we offer to consumers and merchants. We remain very excited about the growth of China's consumption economy, which is benefiting from the acceleration of digitalization in all aspects of life and work," said Alibaba Chairman and CEO Daniel Zhang in commenting on the results of the quarter and the year.
Tesla (TSLA) CEO Elon Musk stated on Twitter last night that the company has suspended vehicle purchases using Bitcoin, citing concerns about "rapidly increasing use of fossil fuels for Bitcoin mining and transactions." Musk added that Tesla will not be selling any Bitcoin, as it intends to use it for transactions "as soon as mining transitions to more sustainably energy," while also noting that the company will be "looking at other cryptocurrencies that use less than 1% of Bitcoin's energy/transaction." In response, Wedbush analyst Daniel Ives called Musk's "major U-turn on crypto" a "very surprising and confusing move" to both Tesla and crypto investors.
McDonald's (MCD) will be raising hourly wages for more than 36,500 employees at company-owned restaurants by an average of 10%, shifting the entry level range for crew to at least $11-$17 an hour, and the starting range for shift managers to at least $15-$20 an hour based on restaurant location, the company announced.
MAJOR MOVERS: Among the noteworthy gainers was Silvergate Capital (SI), which rose 12% after it partnered with Diem Networks to become the exclusive issuer of the Diem USD stablecoin. Also higher were Sonos (SONO) and MultiPlan (MPLN), which gained a respective 5% and 17% after reporting quarterly results.
Among the notable losers was Fluor (FLR) which declined 18% after announcing a convertible preferred stock offering. Also lower were ContextLogic (WISH), Haemonetics (HAE), and American Well (AMWL), which fell a respective 23%, 15%, and 18% after reporting quarterly results.
INDEXES: Near midday, the Dow was up 442.07, or 1.32%, to 34,029.73, the Nasdaq was up 99.58, or 0.76%, to 13,131.26, and the S&P 500 was up 49.88, or 1.23%, to 4,112.92.
Alibaba
-9.91 (-4.51%)
Tesla
-14.72 (-2.50%)
Bitcoin
+
Bitcoin
+
Bitcoin
+
McDonald's
+2.9 (+1.27%)
Silvergate Capital
+10.02 (+12.38%)
Sonos
+1.93 (+6.13%)
MultiPlan
+1.015 (+16.50%)
Fluor
-4 (-16.81%)
ContextLogic
-2.585 (-22.51%)
Haemonetics
-8.485 (-14.18%)
Amwell
-2.19 (-17.07%)