Beat the street: Fed speakers; bond auction; Uber, Rivian, Bumble, eBay earnings
Investors eye Fed speakers and large bond auctions this week as optimism over potential US rate cuts next year wane. Uber, all-sessions, is indicated higher on its Q4 outlook.
(Video Transcript Summary)
Volatility decreasing, US Treasury bonds rising
In this video of beat the street, Angeline Ong talks about the latest happenings in the market before Wall Street opens. She reveals what investors are keeping an eye on, such as US policymakers and new bond auctions happening over three days. Angeline also mentions the upcoming earnings reports of eBay and Bumble.
There are a few things to note about the market right now. The volatility index, which measures how uncertain the market is, has been steadily decreasing. Although stocks are predicted to decrease, the yields on US Treasury bonds and the value of the dollar are slowly rising. This means that people are paying close attention to the demand for US government debt.
Angeline also highlights important speeches from members of the Federal Reserve (Fed), including chairman Jerome Powell. One member, Neal Kashkari, doesn't think there will be any early interest rate cuts.
Uber’s revenue takes a dip
On a different note, Uber's revenues for the third quarter are slightly lower than expected, but their bookings for the fourth quarter and adjusted call profit are better than expected. As a result, the company's shares are increasing in value.
Other news includes General Motors putting a temporary halt on the production of their fully autonomous cruise Origin van, due to concerns from California regulators.
Rivian Automotive is expected to have higher sales for the third quarter, while WeWork has filed for bankruptcy protection in the US because many corporate clients prefer remote working. The majority of WeWork's lenders have agreed to turn their debt into equity.
In Switzerland, UBS shares are going up after reporting a better-than-expected underlying net profit and showing signs that its core wealth business is stabilising.
Intel gunning for secure chip funding
Lastly, Angeline mentions that Intel is a top contender to receive government funding for secure defence chip facilities. She also discusses the expected revenue growth for eBay and the transition of Bumble's CEO.
To sum it up, the market is currently in a wait-and-see state as everyone waits for the speeches from the Fed later in the week.
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