The surge of infections with COVID-19 Omicron variant was a big concern for investors as the key stock market indices in the United States ended the session in the red on Friday.
The Dow Jones fell 1.48% with Goldman Sachs dropping 3.92%. The tech heavy Nasdaq 100 also fell by 0.39% while the S&P 500 declined by 1.03%.
US National Institute of Allergy and Infectious Diseases (NIAID) Director Dr. Anthony Fauci on Friday said that the newly-detected strain is “beyond doubt” more transmissible than its predecessors.
In apresentation revealed during Pfizer’s investor call on Friday, the company noted thta it assumes that the COVID-19 pandemic will turn into an endemic in 2024. This comes as the firm announced a small-scale study aimed at testing its modified coronavirus vaccine against the virus’ Omicron strain.
Rivian stock falls after shifting 2021 output forecast
Shares of Amazon backed electric vehicle automaker Rivian Automotive Inc. fell by more than 10% during Friday’s trading session after the firm made public its first-ever earnings report after going public.
The earnings for the third quarter of 2021 showed that its net loss increased fourfold to $1.2 billion, with a gross loss of $82 million, with total operating expenses expanding to $694 million.
“As we share our first quarterly earnings as a public company, we’re conscious that in many ways we are just getting started. There are no instant paths to shift the planet to carbon neutral energy and transportation. The challenge is as big as it comes, but we’re fortunate to be able to help solve it with such passionate team members and partners,” the letter to shareholders noted.
Additionally, it noted that the 2021 production might come in “a few hundred vehicles short” of its target from a previous forecast of manufacturing 1,200 vehicles in 2021. The firm blames supply chain challenges.
Adobe Inc. announced on Thursday its revenue in the fourth quarter of 2021 rose by 20% to $4.11 billion. In the full year 2021, revenue was up by 23% to $15.79 billion.
In the fourth quarter, net income declined by 45% to $1.23 billion.
“Adobe’s record performance in Q4 resulted in fiscal 2021 revenue exceeding $15 billion,” the firm’s Chairman and Chief Executive Officer (CEO) Shantanu Narayen commented.
FedEx Corp. reported its earnings results for the second quarter of fiscal 2022, revealing that its operating income annually increased by 9% to reach $1.6 billion. The company’s revenue rose to $23.5 billion in the same period, with net income declining to $1.04 billion or diluted earnings per share of $3.88.
“Second quarter operating income improved due to higher revenue per shipment at all transportation segments, despite the negative effect of labor market challenges that have contributed to global supply chain disruptions,” CFO Michael Lenz noted.
Commenting on the outlook, FedEx said it was unable to make a precise forecast for the year-end fiscal 2022, however revising down estimates for full-year earnings per share.