Stock Market Futures Waver Ahead May Consumer Price Index Report
U.S. stock futures are muted in early morning trading today. As we approach the end of another choppy trading week, investors will likely be waiting for data on the economy. Namely, this would be the case as the U.S. Bureau of Labor Statistics is set to release its latest Consumer Price Index (CPI) reading later today. As it stands, consensus estimates compiled by Bloomberg suggest a year-over-year CPI increase of 8.3%. Moreover, month-over-month, overall inflation is expected to have risen at a notable pace of 0.7%. Should this be the case, it would mark a substantial acceleration from April’s 0.3% increase.
Commenting on all this in further detail is KPMG senior economist, Tim Mahedy. He writes, “Headline CPI will probably stay above 8%, which makes another 50 bps hike in September increasingly likely.” Mahedy continues, “I said last month that we needed to see headline CPI drop below 8% or we’d see a jump in the risk of the Fed pushing rates above neutral in the fourth quarter.” Overall, the economist believes that inflation will ease, albeit at a slower rate than the Fed expects it to. Aside from that, there seems to be plenty of notable stock market news for investors to digest today as well. As of 5:12 a.m. ET, the Dow is trading lower by 0.09%. Meanwhile, the S&P 500 and Nasdaq futures are trading higher by 0.04%, and 0.29% respectively.
DiDi Global To Be Delisted From NYSE Today, June 10
To begin with, DiDi Global (NYSE: DIDI) would be making headlines in the stock market today. This could be the case as DIDI stock is having its final trading on the New York Stock Exchange (NYSE) today. Following a bumpy year of trading, the mobility tech firm will be delisted. Accordingly, this move follows a vote from shareholders to do so due to growing pressure from the Chinese government. The likes of which currently have a new customer ban for adding new customers on DiDi Global. In fact, the condition to lift this ban would be for the company to first leave the NYSE.
Despite all this, it remains unclear as to whether China will lift the ban following this delisting. According to sources from Nikkei Asia, doing this would not “automatically lead to a relaunch of DiDi’s apps in China.” Nevertheless, the ride-hailing firm continues to power forward in its attempt to grow operations. As of earlier this week, a Reuters report indicates that DiDi is going electric. In detail, the company is reportedly considering buying a stake in Sinomach Automobile’s electric vehicle (EV) unit.
Also, the report notes that DiDi is planning to buy a 33% stake in the company, totaling $150 million. Should things go according to plan, DiDi would be the second-largest shareholder of Sinomach. Safe to say, there would certainly be no shortage of coverage on DIDI stock today.
DocuSign Dips Following Wider-Than-Expected Quarterly Losses
At the same time, shares of DocuSign (NASDAQ: DOCU) appear to be reeling after the company’s latest quarterly update. Getting straight into it, the electronic signature software firm posted mixed results in its first fiscal quarter report. According to the press release, DocuSign’s earnings per share for the quarter is $0.38. Furthermore, the company’s total quarterly revenue is $588.7 million. For reference, consensus figures on Wall Street are earnings of $0.46 per share on revenue of $581.8 million. Even after topping Wall Street’s revenue forecast, DOCU stock is feeling the pinch from the company’s earnings miss.
Providing an overview of DocuSign’s latest quarterly performance is CEO Dan Springer. He starts by saying, “We delivered solid first-quarter results, growing revenue by 25% year-over-year and adding nearly 67,000 new customers, bringing our total global customer base to 1.24 million.” Despite the company facing pressures from the return to physical offices, its offerings remain in demand. Arguably, DocuSign’s core enterprise solutions provide a sense of convenience for organizations turning towards hybrid work environments.
Springer adds, “With over a billion users worldwide, the proven value of our products, and the significant opportunity we have ahead of us, we’re confident in our ability to successfully navigate the challenges of a dynamic global environment.” Pair this confidence with the company’s recent partnership expansion with Microsoft (NASDAQ: MSFT) and DOCU stock could be worth considering. With this in mind, long-term investors could be keen on the company’s shares after its latest downward movement.
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Vail Resorts Gains Altitude After Topping Wall Street Estimates In Latest Quarterly Update
On the flip side, Vail Resorts (NYSE: MTN) seems to be gaining momentum thanks to its earnings update. For its fiscal third-quarter results, the mountain resort operator is above consensus estimates on the top and bottom lines. According to the earnings report, Vail’s quarterly earnings per share is $9.16 while its revenue is $1.18 billion. To compare, this is versus consensus figures of an earnings per share of $9.04 and revenue of $1.16 billion on Wall Street. Not to mention, the company is also declaring a quarterly cash dividend of $1.91 per share, payable on July 12, 2022.
Weighing in on Vail’s exceptional quarter is CEO Kirsten Lynch. She notes, “We are pleased with our overall results for the quarter and for the 2021/2022 North American ski season. As expected, results for the quarter significantly outperformed results from the prior year primarily due to the greater impact of COVID-19 and related limitations and restrictions on results in the prior-year period.” Also in the report, the company is anticipating a net income of between $314 million to $348 million for the current quarter. This would be in comparison to its previous outlook of $304 million to $350 million. As such, would you consider MTN stock to be one of the top hospitality stocks to buy in the stock market today?
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Biden Administration Sets Out Plans For National EV Network; BYD To Supply Tesla With EV Batteries
In other news, there seems to be a surge of activity on the domestic EV space today as well. Notably, the White House outlined new initiatives to achieve President Biden’s sustainability goals. Going into the specifics, this update revolves around the President’s plans to build a network of EV chargers throughout America. For a sense of scale, his current plans involve the construction of 500,000 charging stations across key highways and rural communities. This would involve the use of the $7.5 billion in EV infrastructure funds from Biden’s Bipartisan Infrastructure Law.
Alongside this major update on the federal level, leading EV firms like Tesla (NASDAQ: TSLA) continue to grow as well. Just earlier this week, the company received positive news from BYD (OTCMKTS: BYDDY), a massive producer of EVs in the Chinese market. According to BYD VP Lian Yubo, the company is set to supply Tesla with EV batteries “very soon.” All in all, it would not surprise me to see all these developments draw attention to the top EV stocks in the stock market today.