Good Evening! On Thursday, the stock market experienced a mixed performance due to the significant increase in Nvidia’s stock price, which led to a surge in the technology sector. However, concerns regarding the debt ceiling persisted and affected market sentiment.
The S&P 500 and Dow Jones experienced distinct movements, with the first index increasing by 0.88% and the second decreasing by 0.11%. The Nasdaq Composite saw the biggest surge by 1.71% due to its reliance on technology.
AND YOU'RE OUT
Nikola (NKLA) is facing the possibility of delisting from the Nasdaq Composite after experiencing a significant decline in its stock value, despite its initial success during the early stages of the pandemic. On Thursday, the electric truck manufacturer’s shares reached a record low of 60 cents per share.
How does a company stay on the Nasdaq? According to the company, they have received a letter from Nasdaq notifying them that Nikola is not meeting the minimum bid price requirements with the shares having consistently closed at a value below $1 for a period of 30 consecutive business days. To restore compliance, the company is required to maintain a minimum closing share price of $1.00 for a period of no less than 10 consecutive business days, and the deadline for this task is November 20, 2023.
How did Nikola get here? The current scenario of elevated interest rates and a constricted credit market has made the process of securing funding tougher for startups that require substantial capital investment. They did try by making a public announcement in late March regarding a common stock offering valued at $100 million, with each share priced at $1.12. However, the stock experienced a significant decline of up to 18% following the announcement.
THE TEMPERATURE IS RISING AND SO IS PRICES
The prices of popular BBQ items such as hot dogs, potato chips, and hamburger buns are expected to increase during the upcoming holiday weekend. According to the Bureau of Labor Statistics, the April Consumer Price Index (CPI) increased by 4.9% in April compared to the same period in the previous year. In the last month, the cost of groceries increased by 7.1%. Let’s break down the increase in prices:
- The prices of hot dogs and poultry have increased by 2.2% and 5.0% respectively on a year-over-year basis.
- Spices, seasonings, condiments, and sauces: Consumer product goods companies such as Kraft Heinz (KHC) are expected to increase prices, resulting in a 10.3% year-over-year increase in costs.
- Hot dog and hamburger buns: Annually, bakery product prices have increased by 12.9%, primarily due to a 14.3% rise in the cost of white bread.
Looking towards the weekend. Expect a rise in the total amount spent on groceries regardless of what you purchase most for the Memorial Day BBQ. Stay Safe!