Good Evening. On Friday, U.S. stocks extended this week’s extraordinary rise after decelerating CPI inflation data sparked Wall Street’s most robust run since early 2020.
The S&P 500 climbed 0.92%, its largest weekly increase since June, while the technology-focused Nasdaq Composite surged 1.88%. The Dow Jones finished with a small 0.10% gain, trailing the other indices.
FIRST EARNINGS COME OUT STRONG
Polestar (PSNY), a Swedish business backed by Volvo and Geely of China, posted its first gross profit as a public company after completing the SPAC merger this year.
- Earnings Per Share: $0.14 vs. ($0.12) expected
- Revenue: $435 Million vs. $471 Million expected
Despite missing on the top line, Polestar was able to eke out a $4 million gross profit for the quarter as a result of a 105% increase in sales over the same period last year. The company was able to reduce its Q3 operating deficit by one-third compared to the same period last year.
What lies ahead? According to Polestar, the Polestar 4 SUV will debut in 2023, the Polestar 5 grand touring sedan will debut in 2024, and the Polestar 6 roadster will debut in 2026. Polestar previously announced that the Polestar 3 SUV would debut in the fourth quarter of 2019 and be manufactured at Volvo’s South Carolina facility by mid-2024.
FTX FILES FOR CHAPTER 11
Crypto exchange FTX and other connected firms have filed for Chapter 11 bankruptcy, the company stated on Friday. FTX founder Sam Bankman-Fried has resigned as CEO.
John J. Ray III will succeed Bankman-Fried as CEO, and Bankman-Fried will assist with the transition. Alameda Research LLC’s statement lists assets between $10 billion and $50 billion, liabilities between $10 billion and $50 billion, and more than 100,000 creditors.
It does not stop there… The Chapter 11 filing is the latest calamitous event for the ailing exchange, which has shaken the cryptocurrency community with worries of contagion. After the announcement, Bitcoin fell 4% to trade below $17,000. Around $1,250 is being exchanged for ether, which has declined by up to 5%. According to Coinmarketcap, the total market valuation of cryptocurrencies plummeted by 4%, from $880 billion to $857 billion.