Stock Indexes Bounce Back; Gold Sets New Record High

Delta Kicks Off Airline Earnings Tomorrow. Here’s What to Watch For.

12 minutes ago

Delta is slated to be the first airline to report third-quarter earnings this Thursday. Its results may also be the best in the industry, analysts say.

“Premium” carriers that rely more on international and first-class tickets, such as Delta Air Lines (DAL) and United Airlines (UAL), are performing well, analysts said. Meanwhile, budget carriers are seeing sluggish demand from less affluent Americans. Many are using promotions to sell domestic main cabin fares, while trying to make more money on flying passengers rather than on credit-card programs. 

“Premium carriers widen their lead as earnings recession continues to bite,” Deutsche wrote in a research note this week. “We expect half the industry to post losses.”

Delta expects third-quarter revenue to come in 2% to 4% above revenue a year earlier. Premium sales are going well; corporate travel improved; and in the current quarter, Delta started to make revenue on domestic fare, though not in the main cabin, President Glen Hauenstein recently said.

“There’s a lot of consternation, I think, at the bottom end,” of the market, Hauenstein said at a conference last month, according to a transcript made available by AlphaSense. “We’re at the very top, we believe, of the income bracket. So, our average consumer is well over $100,000 [in income] a year … and that seems to be good.”

United’s revenue per available seat mile (RASM), a closely watched industry metric, will likely be negative year-over-year in the third quarter, in part because of flight caps this spring at Newark Airport, the company said. RASM is likely to improve toward the end of the year thanks to “fantastic” international demand and strong corporate sales, CFO Michael Leskinen said at a conference last month.

Read the full article here.

–Sarina Trangle

Verizon Partnership Sends Shares of a Space-Based Cell Provider Surging

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Shares of AST SpaceMobile (ASTS) blasted off, trading at an all-time high after the provider of space-based cellphone service announced it had struck a deal with Verizon Communications (VZ) to offer direct-to-customer broadband service across the continental U.S.

AST said the service will be available to Verizon customers next year and will allow them to have cell reception wherever they are without the need for specialized equipment. 

AST noted that the agreement came after the company’s AST SpaceMobile network hit certain milestones in tests. Financial terms were not listed.

The deal “will extend the scope of Verizon’s 850 MHz premium low-band spectrum into areas of the U.S. that would benefit from the ubiquitous reach of space-based broadband technology,” said Founder and CEO Abel Avellan.

Srini Kalapala, senior vice president of technology and product development at Verizon, said the partnership is “not just filling in the map; we are creating a new paradigm of connectivity that will unlock the full potential of the digital age.” 

AST SpaceMobile shares have soared 250% this year. Shares of Verizon are little changed today.

–Bill McColl

This Data Streaming Software Firm’s Stock Is Soaring Wednesday

1 hr 18 min ago

Confluent (CFLT) shares jumped over 10% in early trading Wednesday following a report the data streaming company is exploring a sale.

The company’s move to sound out buyers comes as the artificial intelligence boom continues to boost demand for companies that support the technology’s infrastructure.

The Mountain View, Calif.-based company is working with an investment bank on the sale process, according to a Reuters report, citing people familiar with the matter. Several private equity firms and technology companies have expressed interest in buying it, the report said.

Confluent didn’t immediately respond to an Investopedia request for comment.

The rise of AI, which needs real-time continuous data, has made companies like Confluent increasingly important to maintaining underlying infrastructure. In May, Salesforce (CRM) struck an $8 billion deal to buy AI-based data management software provider Informatica (INFA).

Though Confluent shares were higher in recent trading, they remained lower for the year, having entered Wednesday session down roughly 25% for 2025. The stock has yet to recover to its levels from July, when it plunged after the company reported that it lost business from a major customer.

–Nisha Gopalan

Will Mortgage Rates Fall—or Rise—Because of the Government Shutdown?

1 hr 38 min ago

The U.S. government shutdown could impact the cost of mortgages, especially if the Republicans’ and Democrats’ inability to agree on a new spending bill drags on. These standoffs make it harder to tell how the economy is doing, and consequently complicate the tricky task of predicting rates even more.

Mortgage rates are most heavily influenced by yields on 10-year Treasury notes. Lenders, who often bundle mortgages together and sell them to investors, price their mortgage-backed securities (MBS) based on the returns offered by competing government bonds. That generally means cheaper mortgages during shutdowns, as in these moments of uncertainty, 10-year treasury notes are in high demand. Their prices rise and their yields fall.

Shutdowns can also pull rates lower by weighing on demand for mortgages. That’s because they result in hundreds of thousands of federal employees not getting paid and delayed issuing of government-funded mortgages, such as FHA, USDA, and VA loans, as well as federally financed flood insurance, which is mandatory in some areas.

This doesn’t, however, mean it’s a given that mortgage rates will slide during a government shutdown.

There are competing forces at play. For example, rates could be pushed higher by credit and fiscal worries and uncertainty about the direction of the economy. If government agencies aren’t operational, they can’t release their scheduled reports about such topics as the labor market and inflation, which often have a major bearing on the economy, borrowing costs, and investor behavior.

Read the full article here.

–Daniel Liberto

Jefferies Stock Falls on Unit’s Exposure to Bankrupt First Brands

1 hr 58 min ago

Shares of Jefferies Financial Group (JEF) fell about 3% soon after markets opened after it disclosed that its Point Bonita Capital asset-management unit is owed $715 million from companies that bought parts from bankrupt auto-parts supplier First Brands.

“The Point Bonita portfolio has approximately $715 million invested in receivables that are almost entirely due from Walmart, Autozone, NAPA, O’Reilly Auto Parts, and Advanced Auto Parts, with First Brands, as the servicer, responsible for directing the Obligors’ payments to Point Bonita,” Jefferies said.

Jefferies shares are down about 27% this year.

Amazon Launches Prescription Vending Kiosks at Certain One Medical Clinics

3 hr 38 min ago

Amazon (AMZN) stock advanced nearly 1% before the bell after it said it was launching prescription vending kiosks at some Los Angeles-area One Medical clinics.

The company said that Amazon Pharmacy Kiosks will allow “patients to pick up prescriptions within minutes of their medical appointment,” and the service will debut in December.

“We know that when patients have to make a separate stop after seeing their doctor, many prescriptions never get filled,” said Hannah McClellan, Vice President of Operations, Amazon Pharmacy. “By bringing the pharmacy directly to the point of care, we’re removing a critical barrier and helping patients start their treatment when it matters most—right away.”

Amazon shares entered Wednesday up just 1% this year, while the benchmark S&P 500 has risen 14%.

Stock Futures Point Higher After Indexes Fell Tuesday

4 hr 44 min ago

Futures tied to the Dow Jones Industrial Average rose 0.2%.

S&P 500 futures also were up 0.2%.  

Nasdaq 100 futures also were 0.2% higher.