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    Stocks making the biggest moves after hours: GitLab, Herbalife and more

    People celebrate the Gitlab IPO at the Nasdaq, October 14, 2021.
    Source: Nasdaq

    Check out the companies making headlines in post-market trading.
    GitLab – The development software operator jumped 23% after it posted a narrower per-share loss than expected while also coming in above expectations for revenue, according to FactSet. GitLab also gave a strong outlook for the next quarter and full year.

    Herbalife Nutrition – The multi-level marketing company dropped 11% after it announced a proposed offering of $250 million in convertible senior notes, which will mature in 2028.
    Sumo Logic – Shares of the machine data analytics company added 11% after reporting a smaller per-share loss and greater revenue than anticipated by analysts polled by FactSet. The company also positively revised its expected full-year earnings per share and revenue.

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    Stocks making the biggest moves midday: Tesla, VF Corp, Marriott, MGM and more

    A general view shows the Tesla logo on the Gigafactory in Gruenheide near Berlin, Germany, August 30, 2022.
    Annegret Hilse | Reuters

    Check out the companies making headlines in midday trading.
    Tesla – The electric vehicle giant slid 6.4% after Bloomberg first reported Tesla planned to cut output of its Model Y by more than 20% in its Shanghai plant this month. China-based electric vehicle maker Xpeng fell 1% in response.

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    VF Corporation – The company behind brands such as The North Face and Timberland dropped 11.2% after it lowered expectations for revenue and earnings in the second half of the year and announced its CEO was retiring.
    Marriott – The vacation property behemoth dropped 2.2% following the announcement of a proposed $500 million private offering for convertible senior notes, which have the option to be turned into company equity, due in 2027.
    United Airlines, Delta Airlines – United gained 2.6% following a Morgan Stanley upgrade to overweight from equal weight on the notion that 2023 could be a “goldilocks” year for the airline. Delta added 0.2% after being named a top pick by the firm.
    Science Applications International – The information technology company gained 4.3%, hitting a 52-week high, after it reported revenue and per-share earnings above expectations. The company also positively revised full-year estimates for both.
    Silvergate Capital — Shares dropped 8.5% after Morgan Stanley downgraded the crypto bank to underweight from equal weight, saying there is more revenue pressure following the FTX fallout.

    Signature Bank — The stock declined 7.4% after Morgan Stanley downgraded it to equal weight from overweight. Morgan Stanley expects funding costs to jump “significantly” over the next several quarters as Signature works to retain deposits from customers. Crypto exposure also remains a “key risk” for the bank.
    Activision Blizzard – Shares of the online gaming company added 0.8% on news reports that Microsoft would defend its $69 billion acquisition deal in court. Microsoft was down 1.9%.
    MGM Resorts International – The casino company rose 1.9% after Truist upgraded MGM to buy from hold, citing a strong events calendar in Las Vegas over the next two years. The company could also be benefitting from renewed optimism about China relaxing its Covid restrictions, which could boost travel to Macau and other casino hubs.
    Starbucks – The coffee chain’s stock shed 1.4% following a downgrade by Deutsche Bank to a hold from a buy rating. The bank said the setup for gains is unfavorable following the recent climb in Starbucks’ stock.
    Alibaba, Pinduoduo – Shares of Chinese companies listed in the U.S. rose after China loosened more Covid restrictions to accelerate the reopening of the economy. Alibaba climbed 0.5%, and Pinduoduo jumped 1.7%. Many Chinese stocks pared earlier gains, however, as the broader market sold off amid fears of aggressive monetary tightening.
    Clovis Oncology – The biopharmaceutical company focused on cancer agents dropped 15.2% as investors continued responding to a disclosure filed last week showing the company expects to file Chapter 11 bankruptcy in the near future.
    — CNBC’s Sarah Min, Yun Li, Jesse Pound and Samantha Subin contributed reporting

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    U.S.-listed Chinese stocks rally as investors turn bullish on reopening shift

    Alibaba headquarters in Hangzhou, China.
    Bloomberg | Bloomberg | Getty Images

    Shares of Chinese companies listed in the U.S. jumped Monday after China loosened more Covid restrictions to accelerate the reopening of the economy.
    The Invesco Golden Dragon China ETF, which tracks the Nasdaq Golden Dragon China Index, rallied nearly 6% in premarket trading. Alibaba and Pinduoduo popped 4.3% and 3.8%, respectively, while Tencent Music Entertainment gained 3.9%. Chinese electric vehicle names Nio and XPeng rallied 6% and 12%, respectively. Bilibili rallied 16%.

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    The index holds 65 companies whose common stocks are publicly traded in the U.S. The majority of their business is conducted within the People’s Republic of China.
    The rally came as some big cities including Beijing and Shenzhen are taking steps to ease Covid testing requirements and quarantine rules amid an economic slowdown and public unrest. The move marked a shift from China’s zero-tolerance approach that involved enforce lockdowns and frequent testing for the past two years.
    China is poised to announce a nationwide reduction in testing requirements and allowing positive cases and close contacts to isolate at home under certain conditions, Reuters reported, citing sources familiar with the matter.
    Morgan Stanley upgraded Chinese stocks to an overweight rating in light of the change in policy. Morgan Stanley had held an equal weight rating on Chinese equities for almost two years.
    The Wall Street firm called the recent developments “a confirmed path towards final post-Covid reopening.”

    The Hang Seng Tech Index, which represents the 30 largest technology companies listed in Hong Kong, surged 8% in Asia trading hours. China’s onshore and offshore yuan topped $7 against the U.S. dollar for the first time since mid-September. 
    – CNBC’s Michael Bloom and Jihye Lee contributed to this report

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    Stocks making the biggest moves premarket: Silvergate Capital, MGM Resorts, Bilibili, Murphy Oil & more

    A United Airlines terminal at John F. Kennedy International Airport in New York January 24, 2011.
    Jessica Rinaldi | Reuters

    Check out the companies making headlines in premarket trading Monday.
    United Airlines — Shares rose 1% after Morgan Stanley upgraded United Airlines to overweight from equal weight, saying 2023 could be a “goldilocks” year for the airline stock.

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    Starbucks — Shares fell 1.3% after Deutsche Bank downgraded Starbucks to hold from buy, saying further gains will be harder to come by after the stock’s recent outperformance.
    Silvergate Capital — Shares dipped 3% after Morgan Stanley downgraded Silvergate Capital to underweight from equal weight, saying a “high level of uncertainty” remains around the stock following the FTX collapse.
    Chinese tech stocks — Shares of Chinese internet stocks jumped in premarket trading after Beijing and Shenzhen reportedly further eased Covid restrictions. The Invesco Golden Dragon China ETF was up more than 5%. Shares of Bilibili surged 16%, while shares of Baidu and Pinduoduo were each up more than 5%. Alibaba rose more than 4%.
    Johnson Controls International — Johnson Controls shares rose slightly after Deutsche Bank named it its top pick heading into 2023. The firm said the HVAC stock helps investors defensively position in the event of a recession.
    MGM Resorts International — MGM jumped more than 3% after Truist upgraded it to buy, saying shares of the casino operator can jump more than 30% on a strong 2023 Las Vegas Strip calendar.

    Murphy Oil Corporation — JPMorgan upgraded the stock to overweight from neutral in its 2023 exploration and production outlook, saying it’s one of the few operators in its coverage with conventional assets, such as oil sands, and a stable production profile. The stock rose by more than 2%.
    Domino’s Pizza — Domino’s rose 1% after BTIG upgraded the stock to buy from neutral, saying margins are set to rebound in 2023 because of higher menu pricing.
    — CNBC’s Michael Bloom contributed reporting.

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    Tim Draper predicts bitcoin will reach $250,000 next year despite FTX collapse: ‘The dam is about to break’

    Draper previously predicted that bitcoin would top $250,000 by the end of 2022.
    He told CNBC that $250,000 “is still my number” despite the digital coin’s more than 60% drop this year.
    The venture capitalist is extending his prediction by six months.

    Tim Draper, founder of Draper Associates, onstage at the Web Summit 2022 tech conference.
    Ben McShane | Sportsfile via Getty Images

    Venture capitalist Tim Draper thinks bitcoin will hit $250,000 a coin by the middle of 2023, even after a bruising year for the cryptocurrency marked by industry failures and sinking prices.
    Draper previously predicted that bitcoin would top $250,000 by the end of 2022, but in early November, at the Web Summit tech conference in Lisbon, he said it would take until June 2023 for this to materialize.

    He reaffirmed this position Saturday when asked how he felt about his price call following the collapse of FTX.
    “I have extended my prediction by six months. $250k is still my number,” Draper told CNBC via email.
    Bitcoin would need to rally nearly 1,400% from its current price of around $17,000 for Draper’s prediction to come true. The cryptocurrency has plunged over 60% since the start of the year.
    Digital currencies are in the doldrums as tighter monetary policy from the Fed and a chain reaction of bankruptcies at major industry firms including Terra, Celsius and FTX have put intense pressure on prices.
    FTX’s demise has also worsened an already severe liquidity crisis in the industry. Crypto exchange Gemini and lender Genesis are among the firms said to be impacted by the fallout from FTX’s insolvency.

    Last week, veteran investor Mark Mobius told CNBC that bitcoin could crash to $10,000 next year, a more than 40% plunge from current prices. The co-founder of Mobius Capital Partners correctly called the drop to $20,000 this year.
    Nevertheless, Draper is convinced that bitcoin, the world’s largest cryptocurrency, is set to rise in the new year.
    “I expect a flight to quality and decentralized crypto like bitcoin, and for some of the weaker coins to become relics,” he told CNBC.

    Draper, the founder of Draper Associates, is one of Silicon Valley’s best-known investors. He made successful bets on tech companies including Tesla, Skype and Baidu.
    In 2014, Draper purchased 29,656 bitcoins confiscated by U.S. Marshals from the Silk Road dark web marketplace for $18.7 million. That year, he predicted the price of bitcoin would go to $10,000 in three years. Bitcoin went on to climb close to $20,000 in 2017.
    Some of Draper’s other bets have soured, however. He invested in Theranos, a health startup that falsely claimed it was able to detect diseases with a few drops of blood. Elizabeth Holmes, Theranos’ founder, has been sentenced to 11 years in prison for fraud.

    ‘The dam is about to break’

    Draper’s rationale for bitcoin’s breakout next year is that there remains a massive untapped demographic for bitcoin: women.
    “My assumption is that, since women control 80% of retail spending and only 1 in 7 bitcoin wallets are currently held by women, the dam is about to break,” Draper said.
    Crypto has long had a gender disparity problem. According to a survey conducted for CNBC and Acorns by Momentive, twice as many men as women invest in digital assets (16% of men vs. 7% of women).
    “Retailers will save roughly 2% on every purchase made in bitcoin vs dollars,” Draper added. “Once retailers realize that that 2% can double their profits, bitcoin will be ubiquitous.”
    Payment middlemen such as Visa and Mastercard currently charge fees as high as 2% each time credit cardholders use their card to pay for something. Bitcoin offers a way for people to bypass the middlemen.
    However, using the digital coin for everyday spending is tough, since its price is very volatile and the coin is not widely accepted as currency.
    “When people can buy their food, clothing and shelter all in bitcoin, they will have no use for centralized banking fiat dollars,” Draper said.
    “Management of fiat is centralized and erratic. When a politician decides to spend $10 trillion, your dollars become worth about 82 cents. Then the Fed needs to raise rates to make up for the spend, and those arbitrary centralized decisions create an inconsistent economy,” he added. Fiat currencies derive their worth from their issuing government, unlike cryptocurrencies.
    Meanwhile, the next so-called bitcoin halving — which cuts the bitcoin rewards to bitcoin miners — in 2024 will also boost the cryptocurrency, according to Draper, as it chokes the supply over time. The total number of bitcoins that will ever be mined is capped at 21 million.

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    This tax strategy may offset losses – but investors need to act now or be in for a ‘nasty surprise’

    Live, Mondays, 1 PM ET

    Investors may get a wake-up call this winter when it comes to taxes, but it doesn’t have to be that way.
    According to BNY Mellon’s Ben Slavin, it’s a key time to sell losing investments in order to cut down on capital gains. He warns waiting until January or February may be too late.

    “Mutual fund investors are in for quite a nasty surprise,” the firm’s global head of ETFs told CNBC’s “ETF Edge” last week. “A lot of the mutual fund companies have already provided estimates on their website, so investors can take a look and see what their expectation would be around the capital gains and what kind of tax bill they’re going to get at the end of the year.”
    With the major indexes lower for the year, Slavin contends the strategy has broad appeal.
    “It’s not simply about just harvesting the losses,” he said. “It’s the right time of year to take a look at the portfolio that you have and understand how to position yourself in these markets. It’s a double-edged sword.”
    State Street Global Advisors’ Matt Bartolini also sees advantages for investors looking to offset tax losses and stay in the market.
    “You own a mutual fund that tracks the broad base of U.S. equities. … That mutual fund might actually be lined up to pay a big capital gains dividend because of the loss associated with the overall portfolio,” the firm’s managing director said in the same segment. “At this point in time, sell that mutual fund and then buy an associated ETF and therefore you’re able to maintain your market exposure and harvest those losses in some of these areas in the marketplace.”

    Bartolini said investors can also sell broad-based ETFs and buy back into other ones covering a similar marketplace.
    “One of the tactics that we see utilized within clients’ portfolios in tax-loss harvesting is to just lower your costs, go into a lower-cost exposure, harvest some losses and maintain that allocation into a market exposure like U.S. equities, like emerging market equities,” he said.

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    Stocks making the biggest moves midday: Zscaler, Marvell Technology, DoorDash and more

    Zscaler rings the opening bell at the Nasdaq exchange in New York, March 16, 2018.
    Source: Nasdaq

    Check out the companies making headlines in midday trading.
    Zscaler – The cloud security company’s shares dipped 10.7% following its quarterly earnings report, despite Zscaler posting strong results. Earnings and revenue were stronger than analysts’ expectations. The company also forecast better-than-expected earnings and revenue for its fiscal second quarter and full year.

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    Marvell Technology – The semiconductor stock fell 1.5% after the company reported weaker-than-anticipated earnings and revenue for the most recent quarter. Its outlook for revenue for the fourth quarter also came in lower than analysts expected.
    DoorDash – Shares of the food delivery service operator fell 3.4% following a downgrade from RBC Capital Markets. The firm cited slowing order growth, calling it “too important to ignore,” and intensifying competition from Uber.
    Asana – Shares of the work management platform operator plunged about 10.5% after the company reported a loss for the most recent quarter, though it was narrower than expected. The company also issued weaker-than-expected guidance for fourth-quarter revenue.
    PagerDuty – Shares of the IT company rose 5.1% after it reported a slight profit for the third quarter, beating analysts’ expectations of a loss. Its revenue came in better than expected.
    Enphase Energy – Shares of energy name Enphase surged 7% Friday and hit a 52-week high after the company announced it launched a group of microinverters in Europe.  

    Horizon Therapeutics – Shares of Horizon Therapeutics jumped 3.9% after Sanofi reportedly said that if it decided to make a bid for the biotech company, it would be an all-cash offer. Earlier this week, Horizon said its board was engaged in preliminary discussions with three pharma giants for potential takeover offers.
    SolarEdge – Shares of the clean energy company climbed 4.4% after the Commerce Department released a preliminary report that said Chinese solar manufacturers have been circumventing tariffs. Israel-based SolarEdge was not named in the announcement.
    Chinese stocks – Shares of Chinese retail stocks Baidu gained 4.7% while JD.com and Pinduoduo rose 5% and 3.1% respectively as signals of easing Covid restrictions in China calmed investors. NetEase, a Chinese internet company, also gained 3.9%.
    Intel – Shares of Intel slumped 1.4% after the chipmaker offered its staff in Ireland three months of unpaid leave as a cost-cutting measure, the Financial Times reported.
    Salesforce – Shares of the software giant fell 1.7%, extending its loss of more than 8% Thursday after co-CEO Bret Taylor announced he was leaving the company. Wolfe Research downgraded Salesforce to peer perform from outperform, saying the company is facing several hurdles in addition to the pressure on the tech industry.
    — CNBC’s Tanaya Macheel, Michelle Fox and Jesse Pound contributed reporting

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    Goldman Sachs warns traders of shrinking bonus pool as Wall Street hunkers down

    Goldman Sachs traders and salespeople will have to contend with a bonus pool that’s at least 10% smaller than last year, despite producing more revenue this year, according to people with knowledge of the situation.
    Goldman began informing executives in its markets division this week to expect a smaller bonus pool for 2022, according to the people, who declined to be identified speaking about compensation matters.
    “We always tell people their bonus is based on how they did, how their group did, and finally how the company did,” said a person with knowledge of the company’s processes.

    David Solomon, chief executive officer of Goldman Sachs, speaks during the Milken Institute Global Conference in Beverly Hills, April 29, 2019.
    Patrick T. Fallon | Bloomberg | Getty Images

    Goldman Sachs traders and salespeople will have to contend with a bonus pool that’s at least 10% smaller than last year, despite producing more revenue this year, according to people with knowledge of the situation.
    That’s because the New York-based bank is dealing with a slowdown across most of its other businesses, especially investment banking and asset management, areas that have been hit by surging interest rates and falling valuations this year.

    Goldman began informing executives in its markets division this week to expect a smaller bonus pool for 2022, according to the people, who declined to be identified speaking about compensation matters. The figure will be cut by a “low double-digit percentage,” Bloomberg reported, although pay discussions will be ongoing through early next year and could change, the people said.
    Wall Street is grappling with sharp declines in investment banking revenue after parts of the industry involved in taking companies public, raising funds and issuing stocks and bonds seized up this year. Goldman was first to announce companywide layoffs in September, and since then Citigroup, Barclays and others have laid off staff deemed to be underperformers. JPMorgan Chase will use selective end-of-year cuts, attrition and smaller bonuses, and this week Morgan Stanley CEO James Gorman told Reuters that he planned to make “modest” cuts in operations around the world.
    Despite the tough environment, trading has been a bright spot for Goldman. Geopolitical turmoil and central banks’ moves to fight inflation led to higher activity in currencies, sovereign bonds and commodities, and the bank’s fixed-income personnel took advantage of those opportunities.
    Revenue in the markets division rose 14% in the first nine months of the year compared with the same period in 2021, while the company’s overall revenue fell 21%, thanks to large declines in investment banking and asset management results. Accordingly, the amount of money the bank set aside for compensation and benefits also fell by 21%, to $11.48 billion through Sept 30.
    “We always tell people their bonus is based on how they did, how their group did, and finally how the company did,” said a person with knowledge of the company’s processes. “This year, some of the good money traders made will have to go fund the other parts of the bonus pool.”

    Employees should know that big banks including Goldman try to smooth out compensation volatility, meaning that valued workers contending with a slow environment may get better bonuses than the revenue figures would suggest, and vice versa, according to this person.
    A Goldman spokeswoman declined to comment on the bank’s compensation plans.
    While the overall size of bonus pools will be shrinking everywhere, individual performers may see more or less than they earned in 2021 as managers seek to reward employees they want to retain while signaling to others that they should pack their bags.
    The decrease in the bonus pool comes off a strong year for both trading and investment banking in 2021. In retrospect, that was probably the last gasp of a low interest rate era that encouraged companies to go public, issue securities and borrow money.
    The need for job cuts and smaller bonuses on Wall Street became clear by mid-year, when a hoped-for revival in capital markets failed to materialize.
    Investment bankers are likely to face the deepest pay cuts, with those involved in underwriting securities facing drops of up to 45%, according to industry consultants.

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