Good Evening. The U.S. stock market was strongly higher on Friday, but lower for the week, as traders analyzed monthly employment data that did little to deter the possibility of more aggressive monetary tightening and considered rumors that China may loosen COVID restrictions.
The S&P 500 increased by 1.36%, while the Dow Jones increased by 1.26%. The Nasdaq Composite showed a similar increase of 1.28%. Nonetheless, each of the three major averages declined for the week. The Dow ended the week in the red for the first time in five weeks.
Q4 ISN'T LOOKING SO WELL
Shares of Funko (FNKO) were plunging after the toy manufacturer missed third-quarter earnings projections and projected flat growth in the crucial holiday quarter.
Let’s look at the estimates… The actual cause of the stock’s precipitous decline was a severe drop in guidance. Management anticipates a fall in fourth-quarter revenue to $310 million – $330 million, which is alarming given that the fourth quarter is normally the company’s strongest historically.
Additionally, management reduced its full-year earnings per share outlook from $1.88 – $1.99 to $0.85 – $0.95, predicting fourth-quarter earnings per share of approximately $0.12 to $0.22. On top of that, management warned that increased investment expenditures will continue to have an effect on profitability until 2023.
The Justice Department dismantled its first nationwide catalytic converter theft ring and seized residences, automobiles, and other assets worth a staggering $545 million. 21 people from five states were detained for a crime that has increased dramatically since the outbreak began.
Did you know… According to the National Insurance Crime Bureau, thefts of catalytic converters increase from 1,298 in 2018 to 52,206 in 2021.
Why the increase? Catalytic converters contain precious metals whose value has soared in recent years due to pandemic-related shortages (replacing one can cost up to $2,000). In addition, they are simple to steal; it takes only a few minutes to remove one from a vehicle so be careful.