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Dow rallies briefly, then cuts gains – Stocks end October on upside – Uber/Pfizer and others jump on earnings – US diesel supplier warns to prepare for shortages – Elon Musk’s Twitter receives fresh investments
The Dow Jones Industrial Average rallied briefly on Tuesday morning by more than 200 points. However, those gains were lost after economic reports came in on the first day of November, as investors also eye the Federal Reserve’s two-day meeting with an interest rate decision due Wednesday, Investor’s Business Daily reported.
Despite the Dow falling nearly 130 points, or 0.4 percent on Monday, the blue chips still ended on the upside by 14 percent for the month of October, its best monthly gain since January 1976, CNN reported. However, the Dow remains off by 10 percent this year.
Also ending October with an up, the S&P 500 was up by 8 percent, and the NASDAQ rose by about four percent.
Key earnings came in on Tuesday boosting a number of companies. Uber Technologies (UBER), despite the rideshare company posting a loss of 61 cents a share for the third quarter, much more than the 18 cents expected, Yahoo reported. Uber’s CEO said there are “absolutely no signs” of ridership slowing.
Pfizer (PFE) beat earnings estimates with stock rising 2.90%, Arista Networks (ANET) was up 1%, and NXP Semiconductors (NXPI) climbed by 3%.
Eli Lilly (LLY) saw shares fall by 4.5% after trimming its full-year earnings outlook.
US diesel supplier Mansfield Energy is taking preparatory steps in advance of a diesel shortage on the East Coast and issued an advisory to businesses to make a plan to deal with an upcoming diesel fuel shortage, FOXBusiness reported. Mansfield speculated the shortage in the southeastern region of the US could come from “poor pipeline shipping economies,” as well as a historically low supply of reserves. The reserves are about half of the normal inventory, which is typically 50 million barrels in storage. Currently, there are less than 25 million barrels available.
“A tight diesel supply will force prices to go up, which will eventually make it too expensive for some people,” the company wrote in a press release. “High prices will bring demand back down enough that it balances with limited supply.”
Following Elon Musk’s takeover of Twitter, fresh investments are rolling in from some heavy hitters including Twitter co-founder Jack Dorsey and a Saudi Prince, Republic World reported.
According to a filing with the United States Securities and Exchange Commission on Monday, Dorsey has transferred his entire stake in the firm, consisting of 18 million shares, worth close to $978 million at the buyout price of $54.20, BBC reported.
Saudi Prince Alwaleed bin Talal bin Abdulaziz of Saudi Arabia and the Kingdom Holding Firm are now the second-largest investors in Twitter according to a filing with the US government, noting he has rolled over 34.948 million Twitter shares, fulfilling his $1.9 billion commitment. Currently, Alwaleed and Kingdom Holding jointly hold 4% of Twitter.
