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Stocks and dollar dip as treasuries, oil and gold rise, Stocks making gains before the bell, Alibaba to split into 6 separate business groups, Disney to lay off 7,000 workers and metaverse team, Musk says Twitter worth less than half of what he paid for the company, and more financial news
Markets continued to stabilize in the wake of turbulence in the financial sector, with the dollar gauge falling for the eighth time in nine days and stocks moving slightly lower on Tuesday, Yahoo Finance reported. At the same time, treasuries and oil moved up slightly, as did gold.
The S&P 500 dipped -5.79 points or -0.15%, while the Dow was down -7.75 or -0.02%, and the NASDAQ slid -23.22 points or -0.20%.
The benchmark US 10-Year Treasury was up +0.023% for a yield of 3.551%, while the 2-Year Treasury was up +0.047 for a yield of 4.12% as of 9:23 AM EDT
In oil futures, WTI crude was up +0.14% and trading at $72.91 a barrel, while the benchmark Brent crude was up +0.06% and trading at $78.17 as of 8:24 AM CDT.
Gold was up +9.40 or +0.48% at $1963 an ounce.
First Republic Bank gained 3.6%. Lyft rose 5% after announcing its co-founders, CEO Logan Green and President John Zimmer, which soon step down from their day-to-day roles, CNBC reported. Walgreens advanced 1.7% after better-than-expected fiscal second-quarter results. Paramount gained 5% after a rating upgrade from Bank of America. Alibaba jumped by 9.8% after announcing it was splitting into six separate business groups.
Chinese e-commerce giant Alibaba announced it will split its company into six business groups, each with the ability to raise outside funding and go public. In a statement, the company said the move is “designed to unlock shareholder value and foster market competitiveness.” Alibaba’s shares jumped more than 9% in pre-market trade in the US, CNBC reported.
Disney has already let 50 people go as it is disbanding its metaverse team as part of a company-wide staff reduction that will ultimately result in layoffs of 7,000 workers, CoinDesk reported. CEO Bob Iger said the layoffs are an attempt to control costs and develop a “streamlined business.”
In an email sent to staff on Friday, Elon Musk told employees that Twitter was now worth about $20 billion, less than half the amount he paid to purchase the company, the New York Times reported. The email was to explain a new stock compensation program for employees.
The NY Times wrote: “According to Mr. Musk’s email about the new stock compensation program, Twitter employees will receive stock in X Corporation, the holding company he used to buy the company. Those awards will be granted under the $20 billion valuation.”
However, Musk added that he believed Twitter could someday be worth $250 billion, ARSTechnica reported.
