S&P 500 rises as Wall Street seeks Federal Reserve clues in Jackson Hole

Post-SPAC names surge in past 30 days, but plummet year-to-date

SPACs have seen a rebound over the past 30 days, but they’re still far in the hole for 2022.

CNBC’s Post SPAC index, comprised of SPACs that successfully merged and debuted in public markets, rose 10.6% in the July 26-August 25 period. During this period, it has beaten the S&P 500, which is up 5.36%. .

Sharp jumps in a handful of names helped push the index up. Getty Images, for example, is up more than 217% in the past 30 days, while EV battery maker Enovix has added more than 136%.

Nonetheless, SPACs as a whole suffered in 2022 as investors turned away from low-income speculative companies. The CNBC Post SPAC index is down nearly 46% for the year, compared to the S&P 500’s decline of about 12.6%.

SPACs, or special purpose acquisition companies, raise money through an initial public offering, then use the proceeds to buy a private company and start it up within two years.

Liquidations of SPACs have resumed as companies approach the two-year mark and have struggled to bring companies to market under these less than favorable conditions: Fifteen SPACs have been liquidated since the start of the year, including five in August. Meanwhile, there was one liquidation in 2021 and two in 2020, according to SPACResearch.

Darla Mercado, Gina Francolla

Snowflake jumps 20% on its turnover

Snowflake the stock jumped more than 20% after beating earnings estimates in the last trimester. The cloud data platform provider reported revenue of $497 million, beating Refinitiv’s estimate of $467 million.

Snowflake said product revenue grew 83% year-over-year and noted that it expects this segment to bring in between $500 million and $505 million in the third quarter. For the full year, the company expects product revenue of $1.91 billion to $1.92 billion.

—Samantha Subin, Ashley Capoot

S&P 500 opens higher

The S&P 500 opened higher on Thursday. The Dow Jones Industrial Average fell 68 points, or 0.21%, shortly after the bell. The S&P 500 and the Nasdaq Composite climbed 0.25% and 0.54% respectively.

—Sarah Min

Unemployment claims fall

First unemployment benefit filings fell last week, Labor Department says said Thursday.

Unemployment claims stood at 243,000 for the week ended August 20, down 2,000 from the previous week. It was also lower than consensus estimates of 255,000, according to StreetAccount.

—Sarah Min

Revisions show less decline in GDP in second quarter

The first revision of second-quarter GDP painted a slightly less bleak picture for the US economy.

The Bureau of Economic Analysis said Thursday that GDP contracted 0.6% in the second quarter. The advance estimate released last month pointed to a decline of 0.9%.

There was a negative review elsewhere in the report. The gross domestic purchases price index rose 8.4% in the quarter. The previous estimate indicated an increase of 8.2%.

Despite high inflation and negative GDP growth, real gross domestic income rose 1.4% in the second quarter.

—Jesse Book

Consumer Confidence Recovers Somewhat, But Recession Fears Remain, Says Bank of America

According to the Bank of America, consumer confidence has eased somewhat from its lows at the start of the year, but recession fears remain.

The BofA U.S. consumer confidence indicator hit a three-month high of 31% on Aug. 21 after a period of falling gasoline prices and better-than-expected economic data, according to a Thursday note. .

Still, the company said a majority of respondents, 66%, expect higher inflation over the next year, with 38% of those respondents anticipating a recession.

Respondents in higher income brackets earning more than $50,000 a year said they were mostly concerned about saving and investing during a downturn.

Meanwhile, low-income people said they were more concerned about job security than their higher-income counterparts, although savings were still their top concern, according to the report.

—Sarah Min

Fed’s George says demand is ‘cooling down’

Kansas City Fed President Esther George told CNBC’s Steve Liesman that “demand is cooling” in the U.S. economy, but what she’s hearing from business leaders isn’t yet consistent with the recession.

George also said inflation remains “broad” and wants to see at least three “consistent months” of improving inflation data.

George declined to say whether the seas were tilting for a half-point or three-quarters point rise at next week’s Fed meeting. She said unemployment may have to rise for the Fed to reduce inflation.

—Jesse Book

Peloton shares plunge after shortfall

Peloton shares fell more than 15% pre-market Thursday after the the equipment manufacturer reported a big loss. The results mark six consecutive quarters of losses reported by the company as it tries to execute a turnaround plan.

The title jumped more than 20% the day before after the announcement of its partnership with Amazon.

—Sarah Min, Lauren Thomas

Autodesk jumps after beating earnings

Autodesk shares jumped more than 9% after the software company reported quarterly earnings and revenue that beat analysts’ expectations.

The company earned $1.65 per share on revenue of $1.24 billion. Analysts polled by Refinitiv had expected earnings of $1.57 per share on revenue of $1.23 billion. Autodesk’s operating margin was also slightly above expectations.

—Fred Imbert

Figs jumps after Ron Baron reveals new purchase

Billionaire investor Ron Baron revealed on ‘Squawk Box’ that he bought shares in medical wear company Figs in recent months.

Baron called the company “the lululemon of healthcare,” referring to one of the fastest growing apparel stocks of the past decade.

Fig shares soared in premarket trading following Baron’s appearance. Shares rose more than 13% after little change before Baron spoke.

Nvidia drops after low revenue report

Shares of chipmaker Nvidia fell 4% premarket after the company reported quarterly results that beat analysts’ expectations.

Nvidia earned 51 cents per share on revenue of $6.7 billion. Analysts had expected the company to post earnings of $1.26 per share on revenue of $8.10 billion, according to Refinitiv.

“Macroeconomic headwinds around the world have resulted in a sudden slowdown in consumer demand” for the company’s gaming products, Nvidia chief financial officer Colette Kress said in a call with analysts.

—Fred Imbert, Jordan Novet

European markets climb ahead of Jackson Hole

European markets advanced on Thursday as global investors await the start of the Federal ReserveJackson Hole Economic Symposium.

The pan-European Stoxx 600 index gained 0.7% in early trade, with core resources adding 1.2% to leading gains as all sectors and major exchanges moved into positive territory.

Germany’s economy grew unexpectedly in the second quarter, new figures confirmed on Thursday, despite fears of stagnation amid soaring inflation and threats to energy supplies following the Russian invasion of Germany. Ukraine.

-Elliot Smith

CNBC Pro: Why Goldman Sachs Thinks This FAANG Stock Is A Sell

FAANG shares delivered a mixed bag of profits in the second quarter, but Goldman Sachs maintains its purchase calls for almost the entire group.

According to the bank, a single action is a sale.

Pro subscribers can read the story here.

— Zavier Ong

CNBC Pro: Morgan Stanley and UBS prefer these ‘cheap’ stocks, even in a recession

The risk of recession is increasing, according to Canaccord Genuity‘s analysts led by Tony Dwyer.

“Our indicators suggest that a recession is increasingly likely as we enter the next year, especially if the Fed continues to raise rates,” according to an Aug. 22 research note.

But according to Morgan Stanley and UBSsome stocks still look cheap, even with the risk of a price slowdown. Here are some of their favorite stocks.

Pro subscribers can read the story here.

— Zavier Ong

Tesla stock to be split

Tesla’s 3-for-1 stock split set to take place Wednesday after market closemeaning shareholders will receive two new shares for each one they currently hold when trading begins on Thursday.

Shares of the automaker gained 0.22% on Wednesday. The latest stock split was approved at the company’s annual meeting on August 4.

Splitting a stock doesn’t fundamentally change a business, but can make it more affordable for some retail investors.

—Carmen Reinicke

Snowflake jumps, Salesforce falls

Quarterly results released after the bell was sent on Wednesday actions of some flight companies.

Snowflake jumped more than 18% after beating Wall Street estimates. Selling powerin contrast, posted strong quarterly results, but gave weaker-than-expected third-quarter and full-year earnings and revenue guidance, sending its stock down nearly 7%.

—Carmen Reinicke

Flat Open Equity Futures Contracts

U.S. stock futures opened flat on Wednesday after all three major averages gained in the regular trading session.

Dow Jones Industrial Average futures rose 8 points, or 0.02%. S&P 500 and Nasdaq 100 futures rose 0.14% and 0.13% respectively.

—Carmen Reinicke

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