Good Evening. Monday’s decline in U.S. equities coincided with the start of a holiday-shortened business week.
The S&P 500 decreased by 0.39%, whilst the Dow Jones was down by 0.13%. Lastly, Nasdaq Composite fell 1.09%.
SLOWING DOWN, BUT STABLE
Zoom Video Communications Inc. (ZM) posted its slowest quarterly revenue growth on record and cut its revenue outlook for the entire year.
- Earnings Per Share: $1.07 vs. $0.83 expected
- Revenue: $1.1 Billion vs. $1.1 Billion
Post-epidemic Zoom is attempting to counteract a decline in growth for its video communications service by extending its commercial tools. It introduced email and calendar services at its annual user conference earlier this month, with the intention of retaining more employees on the platform.
However… Zoom’s profit outpaced Wall Street’s expectations, and the company upped its full-year profits prediction, indicating that the software vendor’s enterprise business is stable during a post-pandemic slump.
Tesla (TSLA) has stated that it would recall 321,000 cars due to a safety concern, causing the company further difficulties.
In a file submitted over the weekend on the website of the National Highway Traffic Safety Administration (NHTSA), the carmaker said that certain Tesla Model 3 sedans and Model Y SUVs had a problem that caused the tail lights to “intermittently illuminate,” resulting in poor visibility on the road.
Tesla was made aware of the problem by vehicle owners in non-U.S. regions, and after analyzing the matter, chose to conduct a voluntary recall to repair the tail light malfunction. This weekend’s filing follows last Friday’s recall of around 30,000 Model X SUVs due to a front passenger airbag problem. Both will be fixed by an over-the-air software update.
Who is keeping count right, NHTSA? This year, Tesla has issued 19 recalls in the U.S., impacting approximately 3.77 million cars. According to NHTSA statistics, only Ford (F) has more recalled cars, with nearly 8.8 million vehicles impacted by 63 recalls. However, cars might be subject to several recalls, the specific number of vehicles impacted by a recall this year is less than the NHTSA’s overall estimate.
THE WEEK AHEAD
Thanksgiving Week for the market: The equity and bond markets will be closed on Thursday for Thanksgiving and will close at 1 p.m. ET on Friday.
Reports: The University of Michigan will issue the final reading of its Consumer Sentiment Index (MCSI) for the month of November, which measures consumer confidence.