U.S. markets climb after a needed dose of positive consumer data
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Good evening, Bull Sheeters. This is Fortune finance reporter Rey Mashayekhi, filling in for Bernhard with a special PM edition of the newsletter.
Tuesday saw the global markets rebound from Monday’s tepid performance, with U.S. exchanges in a more bullish mood after a much-needed dose of upbeat economic data. Meanwhile, Europeans are now facing even more expensive energy prices, and Asian hedge funds are seeking to capitalize on the Evergrande debt crisis.
- The markets in New York were up across the board Tuesday, on the back of positive consumer spending data as we enter the holiday season. The Dow rose nearly 0.2%, the S&P gained 0.4% and the Nasdaq climbed 0.8%.
- Tesla got its market cap back over $1 trillion after gaining 4% on the day, even as CEO Elon Musk sold another $930 million worth of company stock. But the electric automaker is now facing a lawsuit from JPMorgan Chase, which is seeking more than $162 million in damages due to an alleged breach of contract over Tesla stock warrants.
- In other EV news on Wall Street, Lucid saw its market valuation surpass Ford’s on the strength of a bullish earnings report, while Rivian is now the third-most valuable carmaker in the world after eclipsing Volkswagen.
- Peloton is planning to raise $1 billion through a new stock offering, just weeks after the exercise equipment company claimed it didn’t need more capital.
- The European bourses mostly climbed on the day. While London’s FTSE slipped 0.3%, Frankfurt’s DAX gained 0.6%, the CAC 40 in Paris rose 0.3%, and the pan-European STOXX 600 picked up. 0.2%.
- The Eurozone’s GDP grew 2.2% in the third quarter.
- European natural gas prices soared after German regulators suspended the certification process for the controversial Nord Stream 2 pipeline from Russia.
- Private equity giant Carlyle Group is reportedly nearing a $2 billion deal to acquire Swiss industrial software provider AutoForm Engineering.
- Asian markets were mixed. Tokyo’s Nikkei notched up 0.1% and Hong Kong’s Hang Seng spiked 1.3%, while on mainland China, Shanghai’s SSE Composite fell 0.3% and Shenzhen’s SZSE Component slipped nearly 0.2%. South Korea’s KOSPI ticked down less than 0.1%.
- Gaming hardware firm Razer’s shares climbed 11% after reports that a consortium is looking to take the company private in a deal valuing it at $4.5 billion.
- The Industrial and Commercial Bank of China, the world’s largest bank by assets, has been ordered by the Federal Reserve to fix risk management deficiencies in its U.S. operations.
- One of Asia’s oldest hedge funds, Hong Kong-based LIM Advisors, is snapping up distressed Chinese debt amid the fallout from the Evergrande debt crisis.
- Gold dipped slightly, to around $1,850/ounce.
- The dollar continued to rally.
- Crude oil notched upward, with Brent settling north of $82/barrel.
- Crypto slid sharply, with Bitcoin plunging below $60,000 at one point.
That’s all for now; please be sure to check out today’s reads below. Have a wonderful evening and see you tomorrow.
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