Stock Futures Slip as Fed President Signals More Work to Be Done

Stock futures took a dip on Tuesday following comments by Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis. In an interview with The Wall Street Journal, Kashkari emphasized that the central bank still has work to do in order to bring inflation down to its target of 2%. This announcement dampened hopes that the Fed was finished with interest rate hikes.

Wall Street’s Winning Streak Continues

Prior to this news, Wall Street had been enjoying a positive run. The S&P 500 closed higher for a sixth consecutive session, while the Nasdaq Composite achieved its seventh day of gains, marking its longest streak since January.

Stocks on the Move

Several stocks were poised to make significant moves on Tuesday:

Alteryx (AYX)

Alteryx, a software company, experienced an 18% rise in stock after reporting a narrower-than-expected loss in the third quarter. Furthermore, the company’s sales reached $232 million, surpassing analysts’ estimates.

Tripadvisor (TRIP)

Online travel platform, Tripadvisor, saw a 12% increase in stock after reporting adjusted earnings and sales in the third quarter that exceeded expectations. Sales rose by 16% from the previous year, reaching $533 million.

Vertex Pharmaceuticals (VRTX)

Vertex Pharmaceuticals reported third-quarter adjusted earnings of $4.08 per share, beating Wall Street’s expectations of $3.92. Although revenue rose by 6% to $2.48 billion, it fell slightly short of forecasts. The growth in revenue was primarily driven by the continued success of their cystic fibrosis drug, Trikafta, in the U.S. As a result, Vertex raised its full-year guidance for cystic-fibrosis product revenue to $9.85 billion, up from the previous guidance of $9.7 billion to $9.8 billion. Despite this positive news, the stock declined by 2.4%.

International Flavors & Fragrances (IFF) Renews Cooperation Agreement

International Flavors & Fragrances (IFF) has announced the renewal of its previous cooperation agreement with Icahn Capital LP and its affiliates. Known for its production of flavors and fragrances used in various industries including food, beverage, personal care and household products, IFF has successfully turned its financial situation around by recording a profit in the third quarter, in contrast to the loss experienced during the same period last year.

UBS Reports Third-Quarter Loss, but Revenue Surges

UBS, the Swiss bank, has reported a loss for the third quarter mainly due to the costs associated with integrating Credit Suisse. However, despite this setback, UBS witnessed a significant rise in its stock by 2.9% as it announced an impressive 42% increase in revenue, amounting to nearly $11.7 billion. This figure exceeded expectations and can be attributed to the successful completion of UBS’s acquisition of Credit Suisse in June.

RingCentral Exceeds Analysts’ Forecasts and Raises Annual Outlook

RingCentral, a provider of cloud-based communications services, has released its third-quarter adjusted earnings and revenue figures, surpassing analysts’ estimates. As a result, the company’s stock has seen a notable increase of 6.2%. Additionally, RingCentral has revised its forecast for the year, indicating positive prospects for future growth.

Sanmina Falls Short of Expectations, Shares Decline

Sanmina, an electronics manufacturing company, has experienced a decline in its shares by 12%. The drop can be attributed to Sanmina’s announcement of its fiscal first-quarter adjusted profit and revenue estimates. The company expects its adjusted profit per share to range from $1.20 to $1.30, falling below analysts’ average estimate of $1.52. Likewise, Sanmina’s projected revenue of $1.85 billion to $1.95 billion also fell short of the estimated $2.19 billion.

Upcoming Earnings Reports from Prominent Companies

Various notable companies are expected to release their earnings reports on Tuesday. These include Uber Technologies (UBER), Gilead Sciences (GILD), Occidental Petroleum (OXY), D.R. Horton (DHI), Datadog (DDOG), eBay (EBAY), Rivian Automotive (RIVN), Lucid Group (LCID), Akamai Technologies (AKAM), Toast (TOST), GlobalFoundries (GFS), and Robinhood Markets (HOOD).

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