Good Evening. After three days of gains, U.S. equities fell on Wednesday as investors digested the mixed reaction to the midterm election results and looked ahead to much-anticipated inflation data.
The Dow Jones lost 1.95% and the S&P 500 lost 2.08%. The Nasdaq Composite fell by 2.48%.
SECOND CHANCE FOR RIVIAN?
The share price of Rivian (RIVN) increased after hours after the manufacturer of electric off-road vehicles disclosed a third-quarter loss that was less than anticipated and confirmed its full-year production plan and financial outlook.
Rivian reported revenue of $536 million for the quarter, falling short of projections of $561.1 million, and an adjusted EPS loss of $1.57 per share, less than the expected loss of $1.86 per share.
More significantly for investors, the business stated that it will still achieve its forecasted 25,000 car production for 2022, which will have required the manufacturing of roughly 10,600 vehicles in the fourth quarter. Since starting manufacturing late last year, Rivian claimed to have produced over 15,000 automobiles.
Additionally, Rivian stated that it was collaborating with the Georgian government to build a second facility by 2025 and introduce its new R2 platform of automobiles by 2026.
TECH SECTOR LAYOFF
Meta Platforms Inc.’s (META) chief executive Mark Zuckerberg informed hundreds of executives on Tuesday that the company will start terminating staff on Wednesday morning. According to sources familiar with the conversation, Mr. Zuckerberg sounded dejected during the meeting on Tuesday and claimed responsibility for the company’s errors and that his overconfidence in the company’s growth had resulted in overstaffing.
Employees at Meta have spent days asking for details about the impending layoffs and preparing for the worst by forming external groups with current coworkers and talking about how to use benefits. On top of that… company managers have already instructed employees to cancel any unnecessary travel starting this week.
Meta is not the only company… The tech sector is experiencing its worst layoffs in years after hiring aggressively throughout the pandemic. Elon Musk, the firm’s new owner, is trying to restructure Twitter Inc. to fit his vision while also contending with broad apprehension from advertisers regarding its new path. As a result, the company is letting go of thousands of people.