Plus, Peloton has recalled all of its treadmill models for safety concerns, GM smashed earnings expectations, and Equinox has held talks to go public via a SPAC merger.
Stocks were higher at the open on Wednesday with the Dow adding 31 points, or 0.1%. The S&P 500 gained 0.3%, while the Nasdaq rose by 0.7%.
13,333%. That’s how much Dogecoin has risen so far this year, with the coin hitting a high of $0.69 this morning after breaking above $0.50 for the first time on Tuesday. This week’s surge comes ahead of Tesla CEO Elon Musk’s hosting gig at Saturday Night Live, with proponents of the cryptocurrency started as a joke hoping a Musk mention of the coin on national television could drive more demand. “I worry that, once the enthusiasm rolls out, there’s no developers on it, there’s no institutions coming in,” said Galaxy Digital’s Michael Novogratz. “But it’s got this moniker of the people’s coin right now. When you think about the whole theory of what this crypto revolution is, there’s something pure about what dogecoin’s done. It’s a little bit of a middle finger to the system.”
Peloton shares are down more than 10% this morning after the at-home workout company recalled its Tread+ and Tread treadmills over safety concerns. The recall comes less than a month after the U.S. Consumer Product Safety Commission warned about the Tread+ after one child died in an incident involving the machine along with dozens of other reported injuries. Peloton is advising customers who already have either of the treadmill models to immediately stop using the equipment and contact the company for a full refund or other qualified remedy even as it works on a repair to offer to treadmill owners in the coming weeks. “The decision to recall both products was the right thing to do for Peloton’s Members and their families. I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+,” said CEO John Foley in a statement. “We should have engaged more productively with them from the outset. For that, I apologize. Today’s announcement reflects our recognition that, by working closely with the CPSC, we can increase safety awareness for our Members. We believe strongly in the future of at-home connected fitness and are committed to work with the CPSC to set new industry safety standards for treadmills. We have a desire and a responsibility to be an industry leader in product safety.”
Private job growth accelerated in April, but fell short of Wall Street’s expectations, payroll processing firm ADP reported today. Companies added 742,000 workers last month, marking a jump from March’s upwardly revised 565,000 but falling short of the 800,000 forecast by economists. In other economic data, the Institute for Supply Management’s services index unexpectedly fell to 62.7 last month, cooling slightly from a record reading of 63.7 in March. “The rate of expansion is still strong,” said Anthony Nieves, chair of the ISM’s Services Business Survey Committee. “Respondents’ comments indicate that pent-up demand is continuing. Production-capacity constraints, material shortages, weather and challenges in logistics and human resources continue to affect deliveries, which has resulted in a reduction of inventories.”
General Motors shares are up nearly 4% today after the carmaker reported an earnings beat. GM posted earnings per share of $2.25, versus estimates for earnings of $1.04 per share, on revenue of $32.47 billion. “We’ve had a very strong start to the year,” CEO Mary Barra said on a call with reporters. Barra added in a letter to shareholders, “The speed and agility of our team are front and center as we move from management through a pandemic to managing the global semiconductor shortage. This remains a challenging period for the company as we emerge from 2020, but the team continues to demonstrate its ability to manage complex situations.”
And Equinox Holdings is in talks to go public by merging with a SPAC backed by Chamath Palihapitiya. The negotiations between Equinox, the SoulCycle owner and luxury gym operator popular among financiers and celebrities, and Social Capital Hedosophia Holdings Corp VI have not been finalized yet and it’s possible that discussions may not result in a deal, said a person familiar with the talks, though a transaction could reportedly value the combined entity at more than $7.5 billion.
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Crane Company (NYSE: CR): Crane Co. shares rose as much as 4.8% yesterday after the manufacturer of highly engineered industrial products reported first quarter earnings results. “We delivered exceptionally strong results in the first quarter. Each of our three global strategic growth platforms delivered robust results ahead of expectations, with Crane Currency driving the most substantial outperformance in the quarter,” President and CEO Max Mitchell said in an earnings release. “Across all of our businesses and end markets, while uncertainty still exists, we continue to see strengthening underlying trends. In addition, we continue to drive growth above market rates through our consistent investment in technology and strategic growth initiatives. We are extremely well positioned to continue this outgrowth as end markets recover, and we expect strong operating leverage given our consistently solid execution. We look forward to providing additional details of our growth outlook specifically at Aerospace & Electronics during our upcoming May 26 virtual investor event.”