Wall Street set for subdued open, GE surges on split

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(Businesshala) – US stock indexes were set to open mixed on Tuesday after showing a solid rise in producer prices last month, while General Electric pushed back on its plans to split into three public companies.

FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US November 8, 2021. Businesshala/Brendan McDermid

U.S. producers’ prices rose sharply in October, Labor Department data showed, indicating that high inflation could persist for some time amid tight supply chains related to the pandemic.

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Bullish inflation and tighter monetary policy have become a major concern for investors compared to the COVID-19 pandemic.

“I think most investors feel right now that inflation is on the rise. It’s not growing as fast as it was previously expected, but it’s on the rise,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. is also increasing.

The S&P 500 and Nasdaq closed at all-time highs for the eighth consecutive session on Monday, while the Dow closed its second consecutive record high.

“I think what you’re seeing is going to take a little bit of leverage from tomorrow. Interest rates are still really favorable, so it’s not a bad environment,” Pavlik said.

Better-than-expected earnings season, positive developments around COVID-19 antiviral pills and easing of travel restrictions have helped the market continue its record high recently.

General Electric Co jumped 5.2% in premarket trading after the American conglomerate said it would split itself into three companies focused on aviation, healthcare and electricity.

Shares of Tesla Inc rose 1.3%, down nearly 5% on Monday after a Twitter poll by Chief Executive Officer Elon Musk, an offer to sell a tenth of his stake, received 57.9% of the vote in favor of the sale.

The resolution also raised questions about whether Musk has again violated his agreement with the US securities regulator.

At 8:38 a.m. ET, the Dow E-Minis were down 55 points, or 0.15%, the S&P 500 E-Minis was down 0.25 points, or 0.01%, and the Nasdaq 100 E-Minis was up 43.5 points, or 0.27%.

Robinhood Markets Inc. slipped 3.2% after the online retail brokerage said a third party had gained access to the email addresses of nearly five million of its customers in the incident of a security breach.

Zynga Inc. jumped 9.9% after the “Farmville” maker beat quarterly net booking estimates, while TripAdvisor Inc. fell 8.2% after announcing quarterly earnings declines and the departure of Chief Executive Officer Stephen Koffer.

Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Aditya Soni, Bernard Orr


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