Here are the key news, trends, and analysis investors need to start their trading day:
1. Dow falls after hitting an intraday record
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA on October 20, 2021.
Brendan McDermid | Reuters
The S&P 500 rose for the sixth consecutive year, ending just below its record close on September 2nd. The Nasdaq fell slightly on Wednesday. The tech-heavy index was more than 1.6% off its September 7th high. Bitcoin took a breather on Wednesday, a day after it hit an all-time high of $ 67,000. The yield on 10-year government bonds surged over 1.66% after a look at weekly initial jobless claims on Thursday showed a drop to 290,000. That is less than expected and another low of the Covid era.
2. Southwest, America reports adjusted losses but better earnings
A Southwest Airlines Co. Boeing 737 passenger jet lands at Midway International Airport (MDW) in Chicago, Illinois, USA on Monday, October 11, 2021.
Luke Sharrett | Bloomberg | Getty Images
Southwest Airlines reported a third quarter profit on Thursday thanks to a top-up from the state payroll. Without special items, however, the airline posted a loss of 23 cents per share. Revenue was also better than the analysts expected. Southwest canceled more than 2,000 flights earlier this month, blaming Florida bad weather and air traffic control problems exacerbated by staff shortages. The airline said the cancellations and customer refunds cost $ 75 million. Southwest’s shares – only up 6% this year – rose slightly in the premarket.
Pilots chat while looking at the tail of an American Airlines aircraft at Dallas-Ft Worth International Airport.
Mike Stone | Reuters
American Airlines reported third-quarter earnings Thursday thanks to support from state payroll. Without one-time effects, American posted a loss of 99 cents per share. Quarterly sales were also better than expected. American stocks – up nearly 24% in 2021 – rose 1% pre-IPO.
3. Tesla beats in profit and sales; many more cars delivered
A Tesla car charges at a Tesla Supercharger station in Corte Madera, California on April 26, 2021.
Justin Sullivan | Getty Images
Tesla stock – up more than 20% in 2021 and 100% in the last 12 months – slipped 1% on the Thursday before launch, the morning after the electric automaker reported its best estimates for the third quarter . Tesla delivered around 73% more vehicles than in the same quarter of the previous year. Despite citing a variety of challenges, including semiconductor shortages and rolling power outages, Tesla reiterated its previous forecast that it expects “average annual vehicle deliveries to grow by 50%” over a multi-year period.
4. WeWork goes public at a much lower value as part of a SPAC deal
General view of the WeWork Weihai Road flagship can be seen in Shanghai, China on April 12, 2018. The world’s leading co-working space company WeWork is taking over China-based rival Naked Hub for $ 400 million. (Photo by Jackal Pan / Visual China Group via Getty Images)
VCG | Getty Images
WeWork is slated to trade as a public company on Thursday, two years after the eagerly anticipated planned IPO imploded due to investor concerns about its business model and leadership style of founder Adam Neumann. After Neumann was ousted, the Japanese SoftBank, already a major investor, saved the fluctuating WeWork. In March, the office joint venture agreed to merge and go public with the special purpose vehicle BowX Acquisition. It values WeWork at $ 9 billion, a far cry from its high 2019 valuation of $ 47 billion.
5. Trump announces the launch plan for the social media platform and the SPAC deal
“Truth Social” homepage and app announcement. Former US President Donald Trump wants to start an alternative social network. Aside from the announcement, however, there isn’t much to see yet.
Christoph Dernbach | Image Alliance | Getty Images
Former President Donald Trump announced on Wednesday that it would launch his own media network, including a social media platform. The app appears to be the first Trump Media and Technology Group project to go public through a SPAC merger with Digital World Acquisition. That comes from an announcement tweeted by spokeswoman Liz Harrington. Trump was notoriously banned by major social media giants during his presidency earlier this year after his posts related to the January 6 riots in the U.S. Capitol.
– Reuters contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.