Post-SPAC names have been trending upward over the past 30 days, but trending downward over the years
SPAC has enjoyed recovery over the past 30 days, but is still far from the 2022 hole.
CNBC’s Post SPAC Index, which is composed of SPACs that have successfully merged and debuted on the public market, is up 10.6% between July 26th and August 25th. During this period, it outperformed the S&P 500, which was up 5.36%. .
The sharp rise of a handful of names contributed to the index’s rise. For example, Getty Images is up over his 217% over the past 30 days, and EV battery maker Enovix is up over his 136%.
Nonetheless, SPACs as a whole suffer in 2022 as investors shy away from speculative companies with lower returns. The CNBC Post SPAC Index is down nearly 46% over the year compared to the S&P 500’s decline of about 12.6%.
A SPAC, or Special Purpose Acquisition Company, raises money through an initial public offering and uses the proceeds to purchase a privately held company that debuts within two years.
SPAC liquidations are picking up as companies move closer to their two-year target, struggling to bring companies to market in these unfavorable conditions. Meanwhile, in 2021 he had one liquidation and in 2020 he had two liquidations, according to SPACResearch.
–Darla Mercado, Gina Francola
Snowflake surges 20% above revenue
snowflake Shares rose more than 20% after beating earnings estimates in the most recent quarter. The cloud data platform provider made $497 million in revenue, beating Refinitiv’s estimate of $467 million.
Snowflake said its product revenue increased 83% year-over-year and expects its segment to bring in between $500 million and $505 million in the third quarter. For the full year, the company expects product revenue of $1.91 billion to $1.92 billion.
— Samantha Subin, Ashley Caputo
S&P 500 Opens Higher
The S&P 500 opened higher on Thursday. The Dow Jones Industrial Average fell 68 points (0.21%) immediately after the bell. The S&P 500 and Nasdaq Composite were up 0.25% and 0.54% respectively.
— Sara Min
Decrease in unemployment benefits
First claims for unemployment benefits fell last week, Labor Department Said Thursday.
There were 243,000 unemployment claims in the week ending Aug. 20, down 2,000 from the previous week. It was also lower than the consensus estimate of 255,000, according to StreetAccount.
— Sara Min
Revisions reduce Q2 GDP decline
The first revision to GDP in the second quarter eased the pessimism for the US economy slightly.
The Bureau of Economic Analysis said Thursday that GDP contracted by 0.6% in the second quarter. Advance estimates released last month showed a decline of 0.9%.
There was a negative correction elsewhere in the report. The price index for gross domestic purchases increased by 8.4% during the quarter. Previous estimates indicated an 8.2% increase.
Despite high inflation and negative GDP growth, real gross domestic income increased by 1.4% in the second quarter.
— Jesse Pound
Consumer confidence picks up some, but recession fears remain, says Bank of America
Consumer confidence has eased somewhat from its lows earlier this year, but recession fears remain, according to Bank of America.
The BofA’s US consumer confidence index hit a three-month high of 31% as of Aug. 21, according to Thursday’s note.
Still, the company said a majority of respondents, 66%, expect inflation to rise over the next year, while 38% expect a recession.
High-income respondents with annual incomes above $50,000 said they were primarily concerned about saving and investing during a recession.
Meanwhile, those with lower incomes said they were more interested in job security than those with higher incomes, but savings remained their main concern, the report said.
— Sara Min
Federal Reserve’s George says demand is ‘cooling’
Kansas City Federal Reserve Governor Esther George told CNBC’s Steve Leesman that “demand is cooling” in the U.S. economy, but what she is hearing from business leaders is that the economy is still in recession. said it was not consistent with
George also said inflation remained “widespread” and hoped improvement in inflation data would last “consistently” for at least three months.
George declined to say whether interest rates are leaning toward a half-point or three-quarter point hike at next week’s Fed meeting. I said there might be.
— Jesse Pound
Peloton shares plummet after missing gains
Peloton shares fell more than 15% in pre-market trading on Thursday. Equipment manufacturers reported heavy lossesThe results mark the sixth consecutive quarter of losses reported by the company as it seeks to execute its turnaround plan.
Shares soared more than 20% the day before on news of a partnership with Amazon.
— Sarah Min, Lauren Thomas
Autodesk surges after beating profits
Autodesk’s stock price surged more than 9% after the software company reported quarterly earnings and earnings that exceeded analyst expectations.
The company earned $1.65 per share on earnings of $1.24 billion. An analyst surveyed by Refinitiv had expected earnings of $1.57 per share on earnings of $1.23 billion. Autodesk’s operating margin was also slightly better than expected.
— Fred Imbert
Fig jumps after Ron Baron reveals his new purchase
Billionaire investor Ron Baron revealed on the Squawk Box that he’s been buying stakes in medical apparel company Figgs in recent months.
Baron called the company “the lululemon of healthcare,” citing one of the fastest growing apparel stocks of the last decade.
Stocks of figs surged in pre-market trading after Barron came on the scene. Baron’s share price has risen more than 13% since it was little changed before he made his remarks.
Nvidia falls after weak earnings report
Shares of semiconductor maker Nvidia fell 4% in the premarket after the company posted quarterly results that fell short of analyst expectations.
Nvidia earned 51 cents per share on earnings of $6.7 billion. According to Refinitiv, analysts expected the company to report earnings of $1.26 per share against his $8.1 billion in revenue.
“Macroeconomic headwinds around the world have led to a sudden slowdown in consumer demand for the company’s gaming products,” Nvidia CFO Colette Kress said on a conference call with analysts.
— Fred Imbert, Jordan Novett
European Markets Rise Ahead of Jackson Hole
european market It rose on Thursday as global investors waited for the start federal reserveJackson Hole Economic Symposium.
Pan-European STOXX 600 Index Up 0.7% in early trading, underlying resources added 1.2% to lead the rise as all sectors and major stock exchanges entered positive territory.
Germany’s economy posted unexpected growth in the second quarter, new figures confirmed Thursday, but fears of a stagnation amid rising inflation and threats to energy supplies following Russia’s invasion of Ukraine. there were.
– Elliott Smith
CNBC Pro: Why Goldman Sachs thinks this FAANG stock is a sell
FAANG stocks provided mixed earnings in the second quarter, goldman sachs We are holding a buy call for almost the entire group.
According to the bank, only one share is for sale.
Pro subscribers can read the story here.
— Xavier Ong
CNBC Pro: Morgan Stanley, UBS prefer these ‘cheap’ stocks even in recession
Risks of recession are rising, according to kana code geniusanalysts led by Tony Dwyer.
According to a research note dated Aug. 22, “our indicators suggest a growing likelihood of a recession heading into next year, especially if the Fed continues to raise rates.”
But according to Morgan Stanley When UBSMoresome stocks still look cheap — the risk of an economic slowdown is priced in.
Pro subscribers can read the story here.
— Xavier Ong
Tesla stock split
Tesla’s 3-for-1 stock split is set to take place after market close on WednesdayThis means that shareholders will get two new shares for every share they currently hold at the opening of trading on Thursday.
Shares of the automaker rose 0.22% on Wednesday. The latest stock split was approved at the company’s annual general meeting on August 4.
A stock split won’t change the fundamentals of the company, but it may make it more affordable for some retail investors.
— Carmen Reinicke
Snowflake Jumps, Salesforce Falls
Quarterly results released after Wednesday’s bells rang Stocks of some companies flying.
snowflake After beating Wall Street estimates, it surged more than 18%. SalesforceMeanwhile, , reported strong quarterly results, but lower-than-expected third-quarter and full-year profit and earnings guidance, and its stock fell nearly 7%.
— Carmen Reinicke
Stock futures open flat
US stock futures opened flat on Wednesday after all three major averages rose in a normal trading session.
Dow Jones Industrial Average futures were up 8 points, or 0.02%. S&P 500 and Nasdaq 100 futures were up 0.14% and 0.13% respectively.
— Carmen Reinicke