U.S. markets closed virtually unchanged on Monday and traded about flat again in Tuesday’s premarket session. Two Dow Jones industrial stocks (Home Depot and Walmart) reported earnings in the morning, and both beat expectations on both the top and bottom lines. Crude oil traded above $81 a barrel, while Bitcoin sank to below $60,000 late Monday before punching through that level Tuesday morning. Yields on 10-year Treasuries were down about one basis point to around 1.615%.
Among our watch list of meme stocks, Lucid Group Inc. (NASDAQ: LCID) traded up about 7.5% early Tuesday, after reporting quarterly earnings late Monday. The company’s results were nothing to shout about (revenue of $232,000 and loss per share of 43 cents) but the share price was driven higher by Lucid’s order book and potential revenue in the fourth quarter. At the end of the third quarter, Lucid reported 13,000 reservations for new vehicles. After two weeks, that total had risen to 17,000, implying 2022 revenue of $1.7 billion. The company’s balance sheet sports $4.8 billion in cash.
Cryptocurrency miner Bitfarms Ltd. (NASDAQ: BITF) also has reported quarterly results. The company said it mined 1,051 bitcoins in the quarter at an average cost of $6,900 per bitcoin. Bitfarms also reported that, as of last Friday, the company had issued 18.7 million new shares with a value of $113 million since initiating its at-the-market program in mid-August at an average share price of $6.06. Shares closed Monday at $8.61 and traded down about 7% in Tuesday’s premarket.
Meta Materials Inc. (NASDAQ: MMAT) was another company that reported quarterly results after markets closed Monday. They included a $40.3 million loss due to conversion features that are derivatives embedded in the company’s debt instruments. Accounting for this through a fair value analysis required the noncash loss and it “had no impact on shareholder’s equity” for the quarter ended in September. Nevertheless, the stock traded down more than 9% in Tuesday’s premarket.
Progenity Inc. (NASDAQ: PROG) stock added nearly 17% to its share price on Monday and traded up more than 16% Tuesday morning to $4.04. The company had no specific news but is scheduled to report quarterly results after markets close Tuesday. This is likely to be another run at a short squeeze before the earnings report. Stay tuned.