Shares of Rivian and different EV start-ups tank amid inventory sell-off

Rivian electric trucks are parked near the Nasdaq MarketSite building in Times Square on November 10, 2021 in New York City.

Michael M Santiago | Getty Images

shares of Rivian Automotive and other electric vehicle startups rebounded from steep intraday losses on Monday after hitting 52-week or record lows amid a broader market sell-off earlier in the day.

Rivian, Lordstown engines, Faraday future, NEVER, canoe, Nikola Corp. and Electrical solutions for the last mile all down 10% to 18% by 1pm before those losses were erased or narrowed in afternoon trade as broader markets rallied.

Shares in Nikola, Lordstown Motors, Canoo and ELMS all ended in the green, up between 1% and 5.5%. Shares in Rivian closed down about 1%, while shares in Chinese automaker Nio fell 9.1% and Faraday Future pared losses to close 4.7%.

Volatility among pre- and early-sales EV companies followed fluctuations in the broader market as investors decided to take advantage of prices after a sharp sell-off in morning trade.

The Nasdaq Composite Index turned positive after falling as much as 4.9% at the start of the session. The Dow Jones Industrial Average rose 100 points after falling more than 1,000 points in one fell swoop. The S&P 500 traded in the green after briefly falling into correction territory early in the session, more than 10% below its record close on Jan. 3.

Stocks of established automakers such as Tesla, General Motors and Ford engine also reduced losses to close less than 2%.

Shares in Rivian, one of the most-watched EV startups, fell below $60 a share on Monday for the first time since the company’s blockbuster IPO in November. The stock is down 38% since the company went public.

Here’s a look at several EV startups, as well as Tesla and legacy automakers GM and Ford, both of which have announced significant investments in electric vehicles.

— CNBC’s Hannah Miao and Yun Li contributed to this report.

5 issues to know earlier than the inventory market opens Friday, Jan. 21

Here are the top news, trends and analysis investors need to start their trading day:

1. Wall Street looks set to extend its losing streak

Traders work on the floor of the New York Stock Exchange (NYSE) on January 20, 2022 in New York City.

Spencer Platt | Getty Images

US stock futures fell Friday, with the Nasdaq Looking for Wall Street’s biggest drop again Netflix Shares tumbled in the premarket on slowing subscriber growth. The Nasdaq fell for a third straight session, ending Thursday almost 12% below its last record close in November. the S&P500 It also fell for three straight days, closing 6.5% below its record close earlier this month. the Dow Jones industry average fell for five straight sessions, ending more than 5.6% below its record close from early January. All three stock benchmarks were up to speed for big weekly losses.

2. Netflix’s slump would wipe out profits through April 2020

Netflix’s shares fell 20% premarket on Friday, suggesting opening prices below $410 each, erasing more than 20 months of gains and over 40% below its all-time high in November. Investors punished the stock after Thursday’s after-the-bell earnings report, which revealed a Decrease in net paid subscriber additions worldwide in the fourth quarter and an even worse forecast for the current first quarter.

  • The video-streaming giant beat fourth-quarter earnings estimates and matched sales, but Wall Street was more concerned about the future.
  • Netflix said it plans to have a more back-end weighted content slate in the first quarter, with big premieres slated for March.

3. Peloton is taking “significant corrective action,” CEO says

peloton said its fiscal second-quarter earnings late Thursday will be within the previously forecast range, as it takes action to reduce costs and improve profitability. However, the fitness equipment maker said it added fewer subscribers than previously expected in the most recent period, which ended Dec. 31.

The stock rallied 8% in pre-market on Friday in the morning after falling nearly 24% in the regular session following a CNBC report that the connected fitness equipment maker temporarily halted production of its stationary bikes and treadmills due to the explosive Demand eased off at the start of the Covid pandemic. Peloton’s stock opening price on Friday would mark an 85% drop from its all-time high of $171.09 set in January 2021.

4. Intel plans to build $20 billion chip manufacturing facility in Ohio

Intel CEO Pat Gelsinger at the groundbreaking ceremony for two new chip manufacturing facilities in Chandler, Arizona on Friday, September 24, 2021.

Intel Corporation

intel will invest $20 billion in two new plants in Ohio to manufacture advanced chips, The company announced this on Friday, the first step toward a “mega-site” capable of housing eight $100 billion chip fabs. The proposed investment includes 3,000 permanent jobs and 7,000 construction jobs on the 1,000-acre site outside of Columbus. Intel CEO Pat Gelsinger is driving Intel’s expansion plans, particularly in Europe and the US, to compete with global rivals and respond to a global microchip shortage. In September, Intel broke ground on two factories in Arizona as part of its turnaround plan to become a major maker of chips for external customers.

5. US and Russia far apart on Ukraine crisis as top diplomats meet

U.S. Secretary of State Antony Blinken greets Russian Foreign Minister Sergei Lavrov before their meeting January 21, 2022 in Geneva, Switzerland.

Alex Brandon | Reuters

The US and Russia try to avoid Another conflict in Europe. However, top diplomats from both nations warned on Friday that no breakthrough was imminent as fears mounted that Moscow was planning to invade Ukraine. US Secretary of State Antony Blinken and Russian Foreign Minister Sergey Lavrov met in Geneva at what the American called a “critical moment”. Lavrov called the talks “constructive and useful”. Moscow wants a promise that Ukraine, a former Soviet republic, will never be allowed to join NATO and is demanding the withdrawal of allied troops and military equipment from parts of Eastern Europe. The US and NATO have rejected these demands. In 2014, Russia conquered the Ukrainian peninsula of Crimea.

— Reuters and Associated Press contributed to this report. Follow all market action like a pro CNBC Pro. Get the latest on the pandemic with you CNBC’s coronavirus coverage.

Peloton insiders bought almost $500 million in inventory earlier than its massive drop

peloton Executives and insiders sold nearly $500 million worth of their stock ahead of the big drop, according to filings with the Securities and Exchange Commission.

Peloton stock is down more than 80% from its highs over the last year, hitting a 52-week low of $29.11 on Tuesday. But the company’s CEO and other executives sold millions of shares at prices in excess of $100 a share in the months leading up to the big falls.

Company executives and insiders sold their stock valued at $496 million in 2021, according to SmartInsider, citing SEC filings. Virtually all sales were part of 10b5-1 plans or pre-planned sales programs. It’s unclear how many of the sales also involved option exercises or tax sales related to options.

The big sell-off started when the stock started to climb above $80 per share in the fall of 2020 and gained momentum in 2021 when the stock held above $100, filings show.

The company did not respond to requests for comment.

Peloton shares soared as sales and subscribers increased throughout the year first year of the corona pandemic. Consumers flocked to the product when they were looking for ways to work up a sweat without a gym membership. To meet the strong demand, Peloton invested in his business, to scurry ramp up productiong and Accelerate order fulfillment. But when the Covid vaccines rolled out, the company saw weaker demand and its shares started falling.

John Foley, the company’s CEO and co-founder, sold $119 million worth of shares as of November 2020, according to SmartInsider. Most of his sales were $110 a share or more. The sales were part of a pre-agreed 10b5-1 plan to “sell a limited number of the company’s stock for personal finance management purposes,” according to an SEC filing.

Although the plan called for the sale of up to 2.4 million shares by October 2022, Foley informed the board that he had ended the sale plan on August 30, 2021 after selling a total of 1 million shares. No reason was given for the termination, but on November 4, 2021, The company lowered its sales forecast and stocks plummeted.

The stock sales accounted for about 16% of Foley’s total stake in the company, excluding options. Including options, the sale represented about 5% of its holdings, according to SmartInsider.

Many top executives have also cashed out some of their holdings through timely sales. William Lynch, the company’s president, sold more than $105 million in stock last year, with $72 million sold in February at an average price of $144.95.

John Foley, co-founder and chief executive officer of Peloton Interactive Inc., center, speaks as Hisao Kushi, co-founder and chief legal officer of Peloton Interactive Inc., from left, Tom Cortese, co-founder and chief operating officer of Peloton Interactive Inc., Yony Feng, co-founder and chief technology officer of Peloton Interactive Inc., and Graham Stanton, co-founder of Peloton Interactive Inc., listen during the company’s initial public offering (IPO) at the Nasdaq MarketSite in New York, U.S., Thursday, May 26. Sept 2019

Michael Nagel | Bloomberg | Getty Images

Hisao Kushi, co-founder and chief legal and culture officer, sold more than $90 million of its shares — most at prices in excess of $110 per share. Other top sellers included the company’s chief product officer, Tom Cortese, who sold more than $60 million of its stock, and chief operating officer Mariana Garavaglia, who posted more than $25 million in sales.

Members of the board of directors have also cashed out their holdings, including Karen Boone, who sold more than $20 million worth of shares at prices in excess of $140 per share last February, according to documents.

Of course, Peloton insiders weren’t the only ones selling the stock during last year’s runup. With large stock sales by prominent executives such as jeff bezos and Elon Musk, total insider sale achieved a record $170 billion last year, up from $94 billion in 2020, according to SmartInsider. Historically, executives and insiders sell during or near the highs of their stock prices.

“One of the best accepted facts from decades of insider trading research is that corporate insiders buy near bottoms and sell near tops,” said Daniel Taylor, associate professor at the Wharton School.

At the moment, Peloton is flirting with new lows. The stock came very close to falling below it $29 per share IPO price, after CNBC reported that the company had hired McKinsey to review its cost structure, an effort that could result in job cuts and store closures. Peloton is also effectively increasing product prices later this month when that happens begins charging for shipping and installation.

5 issues to know earlier than the inventory market opens Tuesday, Jan. 18

Here are the top news, trends and analysis investors need to start their trading day:

1. The Nasdaq will fall as yields on short and long bonds rise

A trader works on the floor of the New York Stock Exchange at the closing bell on January 14, 2022 in New York.

Timothy A Clary | AFP | Getty Images

2. Activision steps up in Microsoft deal to buy video game giant

A player plays the video game ‘Call of Duty: Black Ops’ developed by Treyarch and published by Activision during Paris Games Week October 25, 2018 in Paris, France.

Chesnot | Getty Images

Microsoft will buy video game giants Activision Blizzard in a $68.7 billion all-cash deal. Activision makes popular game franchises like Call of Duty. Activision has been mired in controversy over the past few months over allegations of sexual harassment and misconduct among company executives. Activision’s shares rose about 37% in premarket trading before being halted after the Wall Street Journal first reported on the deal. Microsoft shares fell more than 2% after the announcement.

3. Goldman Sachs missed quarterly earnings; stocks go down

A Goldman Sachs Group Inc. logo hangs on the floor of the New York Stock Exchange on Wednesday May 19, 2010 in New York, United States.

Daniel Acker | Bloomberg | Getty Images

Bank gains continued Tuesday morning on Dow shares Goldman Sachs Fourth quarter reporting miss merit since operating costs increased by 23% compared to the previous year. The company’s shares fell 2.8% in the premarket. Sales of $12.64 billion beat estimates. On Friday, JPMorgan Chase, also a Dow component, started the quarterly reporting season. Its shares tumbled premarket after falling 6% despite better-than-expected quarterly earnings and sales. JPMorgan’s Chief Financial Officer told the company would probably be missing a key profit target over the next two years.

4. Oil prices hit more than a seven-year high after the UAE attack

Satellite photos obtained by the Associated Press on Tuesday showed the aftermath of a deadly attack on an oil facility in the UAE capital, claimed by Yemen’s Houthi rebels. Planet Labs PBC images analyzed by AP show smoke rising over an Abu Dhabi National Oil Co. tank farm in the Mussafah district of Abu Dhabi on Monday, January 17, 2022.

Planet Labs via AP

US and international oil prices reached more than a seven-year high Tuesday after the United Arab Emirates vowed to retaliate against Iran’s Houthi group in Yemen for Monday’s deadly attack on its capital Abu Dhabi. The UAE is the third largest oil-producing member of OPEC and the seventh largest oil producer in the world, producing just over 4 million barrels per day. Over night, West Texas Intermediate Crude Oil rose more than 2% to $85.56 a barrel before paring those gains.

5. BlackRock’s Fink defends annual letter, delivers stock market call

Laurence “Larry” Fink, Chairman and Chief Executive Officer of BlackRock.

Chris Goodney | Bloomberg | Getty Images

BlackRock CEO Larry Fink pushed back against allegations that the wealth manager was using his weight and influence to support a politically correct agenda. “Stakeholder capitalism has nothing to do with politics. It’s not a social or ideological agenda. He didn’t ‘woke up,'” Fink said in his annual letter to corporate leaders, released Monday. Fink echoed those sentiments in a CNBC interview that aired Tuesday. He said he sees the “shape of the yield curve” in the bond market as a signal of where stocks are going from here with an “aggressive Federal Reserve over the next two years.”

China critic Sen. Tommy Tuberville once more purchased Alibaba inventory, choices

Senator Tommy Tuberville, R-Ala., conducts a press briefing on the Senate subway to propose a vote today on the Jan. 6 commission and the Endless Frontier Act and the Innovation and Competition Act by June, Friday, May 28, 2021.

Tom Williams | CQ Roll Call, Inc. | Getty Images

Alabama Senator Tommy Tuberville, who is an outspoken critic of China and companies there, has been buying and selling shares and options in the Chinese e-commerce giant since last summer Alibaba after asking questions about similar transactions, reveal disclosure reports.

Tuberville made three separate purchases with his wife Suzanne Tuberville as recently as December Alibaba shares valued at up to $300,000 in total, according to a financial report filed Wednesday.

Republican spokeswoman in July told CNBC that in mid-2020 he ordered his financial advisors to sell a small stake in Alibaba stock after learning it was in his portfolio.

That earlier stock sale, worth less than $5,000, came as the former Auburn University football coach was running for the Senate seat.

Tuberville was exposed in July for violating a federal financial transparency law, the STOCK Act, by failing to file disclosures of about 130 stock and stock option trades from January 2021 to May 2021 within a 45-day period.

These trades included a sale of shares on January 25, 2021 put options Per Alibaba Group Holding Limited.

The sale of the put options – which would give their holders the right to sell Alibaba at a share price of $230 by Sept. 19 – was valued at $15,001 to $50,000.

That sale came months after the sale of Alibaba shares that its spokeswoman described.

His spokeswoman at the time said Tuberville wasn’t even aware of the deals because they were being handled by his financial advisors.

Earlier that same month, on July 14, Tuberville and his wife had jointly purchased between $15,001 and $50,000 worth of put options in Alibaba, while on the same day selling put options from the company at a slightly lower strike price, the were rated the same height.

Those transactions were only disclosed in a report Tuberville filed in August, after the news reported his violation of the Stock Corporation Act.

On September 13, Tuberville and his wife sold Alibaba options with an exercise price of $230 in four separate trades, and bought Alibaba put options with the same strike price, another disclosure shows. Overall, these transactions were valued at between approximately $80,000 and $215,000.

On Wednesday, the spokeswoman again referred to his financial advisors when asked about his together the account’s recent Alibaba stock purchases.

“Senator Tuberville has long had financial advisors actively managing his portfolio without his day-to-day involvement,” she said in an email.

Asked if Tuberville now plans to tell those advisors not to trade shares in Alibaba or other Chinese companies, given his criticism of China, the spokeswoman said, “Of course.”

In his financial disclosure filed on Wednesday, Tuberville said he and his wife bought between $50,001 and $100,000 worth of American Depositary shares in Alibaba Group Holding Limited on Dec. 14 through their joint account.

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The next day, according to the disclosure, the Tubervilles bought Alibaba shares valued in the same value range, which allows lawmakers to report transactions in ranges rather than exact amounts.

On Dec. 21, the Tuberville account bought between $15,001 and $50,000 worth of Alibaba stock, the disclosure said.

The pair then conducted a “partial” sale of Alibaba stock on Dec. 23, valued at $50,001 to $100,000, which the senator described on the form.

The Twitter account, which tracks the Legislature’s disclosure documents, updated CNBC on Tuberville’s purchases of Alibaba stock.

Tuberville in June had lauded President Joe Biden for issuing an executive order that would allow the United States to issue a ban US investments in Chinese companies that the White House said would undermine the security or democratic values ​​of the US and its allies.

In a statement at the time, Tuberville said, “Chinese companies routinely violate U.S. sanctions laws and actively facilitate the Chinese Communist Party’s military expansion and persecution of religious minorities.”

In May, Tuberville introduced the China TSP Investment Ban Act, which would permanently ban federal retirement savings plans from investing in a Chinese company.

In addition to Alibaba trades, Tuberville and his wife also bought shares in last month Stratasys Ltd. with a value between 15,001 and 50,000 US dollars and a partial sale or the likef apple Shares valued at $50,001 to $100,000, according to the disclosure.

The couple also bought stock options for Invesco QQQ Trust, Series 1, and for Cleveland Cliffs, and options sold for PayPal and ChannelAdvisor Corp.

The Tuberville individual account bought a commodity futures contract for the delivery of cattle in April ranging from $1,001 to $15,000.

5 issues to know earlier than the inventory market opens Wednesday, Jan. 12

Here are the top news, trends and analysis investors need to start their trading day:

1. Wall Street advanced after the two-day technical recovery

Traders on the NYSE floor, January 10, 2022.

Source: New York SE

US stock futures edged higher on Wednesday after another hot inflation report. the Nasdaq on Tuesday gathered for the second session as Tech stocks continued to rally. The index rose 1.4% as bond yields stabilised, taking some pressure off growth-oriented stocks which appeared to have found a foothold after a difficult start to the new year. the S&P 500 rose nearly 1%, breaking a five-session losing streak. the Dow Jones industry average rose 0.5%, ending a four-session downtrend. The S&P 500 and Dow on Tuesday closed nearly 1.8% and 1.5% off their record closes last week, respectively. The Nasdaq closed 5.6% off its record close in November.

2. Consumer prices rising fastest since 1982

those of the government December consumer price index on Wednesday showed a 7% yoy rise, in line with estimates and the hottest rise since 1982. The core CPI, which excludes food and energy, rose 5.5% yoy, slightly higher than expected. the 10-year Treasury yield On Wednesday dropped to below 1.73% after the data and after rising to over 1.8% this year earlier this week.

3. Fed Chair Powell says tighter monetary policy is needed to control inflation

Federal Reserve Chairman Jerome Powell speaks during his reappointment hearing before the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill in Washington, United States, January 11, 2022.

Graeme Jennings | Reuters

federal reserve Chairperson Jerome Powell, with a seemingly clear path to a second term at the helm of the central bank, explained On Tuesday, the US economy is healthy enough and needs tighter monetary policy to control inflation. That will likely mean raising interest rates this year, tapering monthly asset purchases and reducing the Fed’s balance sheet. Powell made the comments during his confirmation hearing, where key senators indicated they will support him for a second term.

4. Omicron could be heading for a quick decline in the UK and US

A patient with coronavirus disease (COVID-19) lies intubated in his isolation room in the intensive care unit (ICU) at Western Reserve Hospital in Cuyahoga Falls, Ohio, the United States, January 4, 2022.

Shannon Stapleton | Reuters

Scientists see signals The fast-spreading Covid-Omicron variant may have peaked in the UK and could be ready to do the same in the US in South Africa. The influential model from the University of Washington expects the number of daily reported cases in the US to hit 1.2 million by Jan. 19 and then fall sharply. The latest seven-day average of daily new infections was 747,267, according to a CNBC analysis of data from Johns Hopkins University.

5. Biden is sending more Covid tests to schools to keep them open

Students leave Darwin Elementary School in the Logan Square neighborhood of Chicago on Monday, January 3, 2022, the first day of school after the winter break for the Chicago Public Schools.

Brian Cassella | Tribune News Service | Getty Images

The White House increases Federal support for schools’ Covid tests to keep them open as Omicron variant rages across US month The aim is to alleviate supply bottlenecks and promote safety in schools. That’s on top of more than $10 billion spent on school-based testing allowed under the Covid Relief Act.

— The Associated Press contributed to this report. Follow all market action like a pro CNBC Pro. Get the latest on the pandemic with you CNBC’s coronavirus coverage.

5 issues to know earlier than the inventory market opens Thursday, Jan. 6

Here are the key news, trends, and analysis investors need to start their trading day:

1. Wall Street looks stable after Wednesday’s big Fed-driven sell-off

Trader on NYSE January 3, 2022.

Source: NYSE

Dow futures climbed higher but Nasdaq futures moved lower Thursday, the day after a major Federal Reserve-sponsored sell-off, the first regular decline of the year on Wall Street. The minutes of the Fed’s December meeting show that central bankers are preparing to end economic aid sooner than previously expected.

2. The Fed is setting wheels in motion to begin tearing down its massive balance sheet

Federal Reserve Board Chairman Jerome Powell awaits the start of a hearing before the Senate Committee on Banking, Housing and Urban Development on Capitol Hill November 30, 2021 in Washington, DC.

Alex Wong | Getty Images

The Fed began plans to cut the holdings of bonds on its balance sheet at its December meeting, with members saying such a cut would likely begin sometime after the central bank hiked interest rates. That is after minutes from the meeting published on Wednesday.

  • The Fed is currently expected to start rate hikes in March, which would mean a balance sheet cut could begin before summer.
  • After the December meeting, the Fed announced plans to more aggressively reduce its bond purchases.
  • Central bankers will hold their first meeting of the new year on January 26-27. With Covid cases increasing due to the Omicron variant, traders will be curious to see if the Fed adjusts their plans.

3. Investors receive unemployment claims data the day before the December employment report

A job seeker leaves the airport-related employment fair at Logan International Airport in Boston, Massachusetts, the United States, December 7, 2021.

Brian Snyder | Reuters

Central bankers and investors will get another reading on labor market health on Thursday at 8:30 a.m. ET. The government’s weekly look at unemployment claims for the week ending January 1 is expected to show a total of 195,000 first-time registrations. That would roughly correspond to the level of the previous week, which was close to the lowest level since 1969.

4. Walgreens Stocks Up In Earnings; Bed Bath & Beyond shares hit the jackpot

Walgreens in Oakland, California.

Yalonda M. James | San Francisco Chronicle | Hearst Newspapers via Getty Images

Dow share Walgreens Boots Alliance rose 3% in the premarket after the pharmacy chain reported better-than-expected results and revenue for the first quarter of the fiscal year on Thursday morning. Walgreens also raised its annual forecast as customers came into its stores for Covid vaccines and tests. The company’s shares closed at $ 54 on Wednesday, up nearly 1%. The stock was up 30% over the past 12 months as of Wednesday’s close, equating to a market value of more than $ 46.7 billion.

Customers shop in a Bed Bath & Beyond store

Courtesy: Bed Bath & Beyond

Bed bath in addition The stock lost nearly 2% early on the market after the household goods retailer missed analysts’ expectations for its third fiscal quarter on Thursday morning. Bed Bath & Beyond reported a loss when analysts expected a break even. Sales were below estimates. The company’s CEO said an inventory shortage due to supply chain bottlenecks cost Bed Bath & Beyond about $ 100 million.

5. CDC supports Pfizer booster shots for children ages 12-15 when the omicrones spike

The headquarters of the Centers for Disease Control and Prevention (CDC) in Atlanta, Georgia.

Tami Chapel | Reuters

Children between the ages of 12 and 15 are now eligible Pfizer and BioNTech‘s Covid booster vaccinations that give them an extra dose of protection when they return to school amid an unprecedented spike in infections in the Centers for Disease Control and Prevention on Wednesday recommended Booster for younger teenagers at least five months after the second dose. Hospital stays for children infected with Covid are increasing in the US as Omicron triggers a wave of infections among the general population. According to the American Academy of Pediatrics, at least 7.8 million children have become infected with Covid since the pandemic began. More than 1,000 children have died from the virus, according to CDC data.

– Follow the entire market like a pro CNBC Pro. Find out about the pandemic with CNBC’s coronavirus coverage.

5 issues to know earlier than the inventory market opens Thursday, Dec. 23

Here are the key news, trends, and analysis investors need to start their trading day:

1. Stock futures indicate the third consecutive profit day

A trader works on the floor of the New York Stock Exchange (NYSE) to start trading on Monday after the sharp decline in global stocks on Friday due to fears of the new omicron Covid variant on December 20, 2021 in New York City.

Spencer Platt | Getty Images

US stock futures on Thursday for a third session in a row with wins in a continuation of Recreation on Wall Street from a previous three-session dry spell due to concerns about the Covid-Omicron variant. the Dow Jones industry average rose 261 points, or 0.7%, on Wednesday, with the S&P 500 and the Nasdaq 1% and 1.2% respectively. To add to the positive mood, the Food and Drug Administration issued an emergency permit for Pfizer‘s Covid pill, the first antiviral drug against the virus for home use.

2. Data shows an improving economy with uncomfortable inflation

A sign stands in front of a job fair for employees who are not vaccinated against coronavirus disease (COVID-19) in Temecula, California, the United States, December 4, 2021.

Denis Poroy | Reuters

Trading is expected to remain relatively thin as the US stock market closes for Christmas Eve on Friday. However, there is a full list of economic data on Thursday starting at 8:30 a.m. ET with numbers on jobs, inflation, spending, and durable goods orders. The numbers showed a strong economy with improving labor and spending trends, but inflation at uncomfortable levels. At 10 a.m. ET, November New Home Sales and the University of Michigan Consumer Sentiment Index, last December, are released.

3. Omicron is milder than other variants, studies show

A woman is given a Covid-19 test while driving through the Covid-19 testing center while hundreds of cars and pedestrians line up to watch Omicron soar across the country ahead of the Christmas holidays on the 22nd.

Tayfun Coskun | Agency Anadolu | Getty Images

The Omicron variant is less likely hospitalization and appears to be milder than previous strains of the virus, according to initial data released by research teams this week. On Tuesday, a new study from South Africa showed that people infected with Omicron were 80% less likely to be hospitalized than those infected with other strains. On Wednesday the US Center for Disease Control and Prevention said this omicron accounted for 90% of cases in some parts of the country. The CDC said the variant made up more than 73% of cases in the US on Saturday.

4. Covid modeling suggests a massive increase in the cases ahead

U.S. Army intensive care nurse Captain Edward Rauch Jr. (L) switches a Covid-19 patient to a ventilator on December 17, 2021 at Beaumont Hospital in Dearborn, Michigan.

Jeff Kowalsky | AFP | Getty Images

Hospitals across the country prepare for another wave of Covid that could rival the early days of the pandemic as the highly mutated and contagious omicron variant rages. The director of the Institute for Health Metrics and Evaluation USA Today said This new modeling shows that there could be about 140 million new cases in the US from January to March. The peak of new infections every day is expected to reach around 2.8 million by the end of next month, according to IHME, with less than 15% expected to be recorded by tests. The US has one a total of 51.5 million reported Covid cases since the virus hit America. The number of reported cases passed the 300,000 mark in early January this year.

5. Elon Musk now says “almost done” selling Tesla stock

Elon Musk, the CEO of Tesla.

Christophe Gateau / Picture Alliance via Getty Images

Tesla CEO Elon Musk said Wednesday he is “almost finished” on his stock sales after selling over $ 15 billion for more than a month. The billionaire had made confusing statements as to whether or not he could cope with his stated goal of selling 10% of his Tesla shares. “I sold enough stock to get about 10% plus the option exercise, and I’ve tried to be extremely literal here,” he said in an interview published Tuesday with the conservative satirical website Babylon Bee. But on Wednesday he suggested he might not be finished. “This assumes the completion of the 10b sale,” he tweeted, referring to his pre-arranged sales plan regarding his options.

– Reuters contributed to this report. Follow the entire market like a pro CNBC Pro. Find out about the pandemic with CNBC’s coronavirus coverage.

– Thursday’s “5 Things” report will be the last of the year. It will return after the holidays on Monday 3rd January.

Elon Musk’s inventory gross sales might complete $18 billion by the top of 12 months

SpaceX owner and Tesla CEO Elon Musk will arrive on the red carpet for the Axel Springer Award 2020 in Berlin on December 1st, 2020.

Britta Pedersen | Getty Images

Elon Musks Sales of $ 906 million in Tesla stock Monday brings him one step closer to his ultimate sales goal. The big question: what is the goal?

Based on his November Twitter poll, musk plans to sell 10% of all of its Tesla shares. At the time he owned a little over 170 million shares, so theoretically he plans to sell about 17 million shares for his Twitter promise.

As of Tuesday morning, he had sold a total of 11.9 million shares, according to InsiderScore / Verity. Sales are spread across a staggering 680 sales for a total of approximately $ 12.7 billion. Based on his 10% target, he would likely sell another 5 million shares – which would be more than $ 4.8 billion at Monday’s closing price of around $ 966.

In the end, however, it could be more. Musk makes two types of stock sales – one to pay tax on its compensation package and the other for direct payouts or “to-pocket” sales.

The main reason for selling Musk is to pay the taxes on the exercise of options that expire next summer. As part of a 2012 compensation package, Tesla’s CEO received options on 22.8 million shares that expire next August. The options were valued at more than $ 28 billion when Musk began selling stocks his tax burden would have been as high as $ 15 billion.

The stock has fallen over 20% since then, along with its tax bill. According to InsiderScore / Verity, Musk sold 6.5 million shares to cover taxes on approximately 15 million options. To exercise all of his options – which is likely since their expiry leaves billions on the table – Musk will likely exercise another 7.8 million options and sell an equivalent of $ 4 billion or more to pay taxes.

From a tax perspective, he’s likely to have four or five block sales of 934,000 shares (the amount sold on each of the most recent tax-related sales) before he’s done for the year.

The big unknown is how many additional shares he could sell for cash or “to-pocket” proceeds. So far, he has sold around 5.4 million shares for cash, regardless of whether he exercises options or taxes. If all of his sales are tax-related from now on, he only has $ 4 billion more to sell. However, if he continues to sell for cash – to fund Space-X or other businesses – the number could rise.

Based on his goal of 10%, Musk will likely only sell an additional $ 5 billion before the end of the year. However, if he has other cash plans or needs, sales could go up even further.

AMC shares hunch as CEO Adam Aron, CFO Sean Goodman promote inventory

An AMC theater is pictured in Times Square in the Manhattan neighborhood of New York City, New York, on June 2, 2021.

Carlo Allegri | Reuters

Shares in AMC entertainment collapsed nearly 7% on Friday after two company executives sold significant portions of their stock.

CEO Adam Aron sold an additional $ 9.65 million in AMC stock as part of his estate planning. a move he warned investors that he would be back in August. He sold 312,500 shares on Tuesday for an average of $ 30.86 apiece, according to a regulatory filing filed Thursday.

This sale comes a month after Aron sold 625,000 shares in the company for approximately $ 25 million. He still holds around 96,000 shares, excluding around 2.9 million shares to be issued in the future based on performance targets.

Separately, AMC’s chief financial officer Sean Goodman sold all of his 18,316 shares for approximately $ 565,000, according to a separate filing with the Securities and Exchange Commission. This excludes approximately 296,000 shares that may be issued as a result of Goodman’s continued business for the company, or approximately 293,000 shares that are tied to performance goals and objectives.

Aron recently announced that the company’s board of directors has approved a new equity policy for the company’s executives that requires them to hold a certain number of AMC shares. According to the new guideline, the CEO must hold his own shares or shares that have been awarded for at least eight years’ salary. The CFO must keep the salary in reserve for six years. Goodman’s untransferred shares meet this requirement.

AMC representatives declined to comment.

“I think that while Adam Aron was clearly expressing his intention to liquidate some of his position in AMC stocks by the end of the year, many investors were surprised by the extent to which he sold stocks between early November and mid-December” said Alicia Reese, an analyst at Wedbush.

“Of course, Sean Goodman has more shares since he sold in November, and all executives will continue to accumulate more shares as part of their compensation packages, but they are walking a fine line by taking advantage of the increased share price, while” private shareholders have committed to hold on at all costs, “she said.

Eric Handler, media and entertainment analyst at MKM Partners, noted that the stock is currently trading 30 times its estimated Adjusted EBITDA for the next year and 22 times its forecast for 2023. AMC’s historic valuation peaked at 9 times the metric, he said.

AMC shares topped $ 72 in June, an all-time high when the company was supported by millions of individual retail investors. In the past few months, however, the share has more than halved. On Friday, the stock closed at $ 27.44, down 6.9%.

Before this surge in new investors, the company’s shares hovered between $ 5 and $ 10, but fell to just $ 1.91 per share in January when it looked like AMC would not avert bankruptcy.

The “meme shares” rally helped the movie theater chain hit hard by the pandemic and laden with debt from previous acquisitions. The rise in inventory allowed Aron to raise enough cash to pay rents and even add more theaters. But even with diversified content like soccer games and concerts and the company’s ability to accept cryptocurrencies for tickets and concessions, analysts don’t expect AMC stock to hold this high level.

“The current price does not appear sustainable on a fundamental basis,” said Handler.[It’s a] very opportunistic way for management to get paid. “

AMC executives and board members had previously has dumped more than $ 70 million in stocks Year, according to a report from Bloomberg. While many of these sales were planned ahead of time by management, it means a massive shift for these executives who sold only a fraction of that amount in previous years.

67-year-old Aron is very transparent with investors and has repeatedly advised them that his stock sales are part of an estate plan to diversify his portfolio. Other AMC executives were less vocal about the reasons for their sales.

These stock sales occur at a time when insider selling has accelerated. A recent study by InsiderScore / Verity found that InsiderScore sold more than $ 69 billion worth of shares that year – a record high. The changes occurred when stock assets were increasing and at a time when Congress discusses significantly higher capital gains tax rates and changes in inheritance tax policy.