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What to Watch Today: Dow Set to Drop After Hitting an Intraday Record

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BY THE NUMBERS

Dow futures dropped Thursday as Dow stock IBM sank nearly 5% in the premarket, the morning after delivering lower-than-expected quarterly revenue. The Dow Jones Industrial Average on Wednesday set a new intraday all-time high but finished just under its Aug. 16 record close. (CNBC)

The S&P 500's rose for the sixth straight session, ending fractionally shy of its Sept. 2 record close. The Nasdaq fell modestly Wednesday. The tech-heavy index was more than 1.6% away from its Sept. 7 record close. Bitcoin took a breather Wednesday, one day after hitting an all-time high near $67,000. The 10-year Treasury yield held above 1.64% ahead of Thursday's weekly look at initial jobless claims. (CNBC)

IN THE NEWS TODAY

Southwest Airlines (LUV) on Thursday reported a third-quarter profit thanks to a boost from federal payroll aid. However, excluding one-time items, the carrier posted a per-share loss of 23 cents. Revenue was also better than analysts had expected. The airline said October cancellations and customer refunds cost $75 million. (CNBC)

American Airlines (AAL) on Thursday reported a profit for the third quarter thanks to federal payroll support. Excluding one-time items, American posted a loss of 99 cents per share. Revenue for the quarter was also better than expectations. (CNBC)

Tesla (TSLA) reported third-quarter earnings and revenue that best estimates. Tesla delivered about 73% more vehicles than it had in the same quarter a year ago. Despite citing a variety of challenges, including semiconductor shortages and rolling blackouts, Tesla reiterated prior guidance (CNBC)

WeWork is set to start trading as a public company Thursday via a SPAC deal, two years after its much-anticipated planned IPO imploded due to concerns over its business model and founder Adam Neumann's management style. After Neumann was ousted, Japan's SoftBank, already a major investor, bailed out the teetering WeWork. (CNBC)

Fanatics' nonfungible token company Candy Digital lured $100 million in a Series A round and is now valued at $1.5 billion. Investors include SoftBank's Vision Fund 2, Insight Partners and Pro Football Hall of Famer Peyton Manning. Specific terms of their investments were not provided. (CNBC)

Former President Donald Trump is launching his own media network, including a social media platform. The app appears to be the first project of the Trump Media and Technology Group, which will go public through a SPAC merger. Trump, while president, was banned by major social media giants after the Jan. 6 riot at the U.S. Capitol. (CNBC)

* House to vote on Bannon contempt as Justice decision looms (AP)

President Joe Biden's approval rating dropped in the CNBC All-America Economic Survey as Americans soured on his economic leadership, lost some confidence in his handling of Covid and grew increasingly concerned about inflation and supply shortages. Just 41% of the public approve of Biden's handling of the presidency, compared to 52% who disapprove.

The FDA last night authorized booster shots of both Johnson & Johnson's (JNJ) and Moderna's (MRNA) Covid vaccines, another critical step in distributing extra doses to tens of millions of people. At the same time, U.S. regulators authorized "mixing and matching" vaccines, allowing Americans to get a booster shot from a different drugmaker than their initial doses. (CNBC)

* Pfizer, BioNTech report high efficacy of Covid booster shot in study (CNBC)

PayPal (PYPL) is in late-stage talks to buy social media company Pinterest, a person familiar with the matter told CNBC. Shares of Pinterest soared nearly 13% after Bloomberg first reported that PayPal may acquire the social media company. Pinterest's stock was modestly lower in Thursday's premarket.

* Plaid pushes into payments business after scuttled Visa deal (WSJ)

Bill Gates said climate tech innovation will create "eight Teslas, 10 Teslas" and a Microsoft, a Google and an Amazon. Gates invests in clean tech through his firm Breakthrough Energy Ventures, which also counts Amazon founder Jeff Bezos, Michael Bloomberg and Ray Dalio as investors. (CNBC)

STOCKS TO WATCH

AT&T (T) rose 1.5% in premarket trading, after the company beat estimates by 9 cents with an adjusted quarterly profit of 87 cents per share. Revenue also came in above analyst forecasts, with AT&T seeing growth in demand for its phone and internet services as well as HBO and HBO Max.

Danaher (DHR) earned an adjusted $2.39 per share for the third quarter, 24 cents above estimates, with revenue also topping predictions. Danaher saw a significant contribution to results from Covid testing and treatment. Shares were flat in the premarket.

Quest Diagnostics (DGX) saw its shares jump 3.4% in the premarket following better-than-expected quarterly results. The company's results got a boost from increased Covid testing, and it raised its full year outlook.

Blackstone (BX) gained 2.8% in premarket action, after earnings per share came in at $1.28, topping a consensus estimate of 91 cents. Blackstone benefited from strong investment performance, among other factors.

Dow Inc. (DOW) came in 19 cents above estimates with an adjusted third-quarter profit of $2.75 per share, with revenue also above estimates. Dow saw improved performance in packaging and specialty plastics as well as coatings, and the stock rose 1.2% in premarket trading.

Crocs (CROX) surged 11.1% in the premarket, following adjusted quarterly earnings of $2.47 per share compared to a $1.88 consensus estimate. The shoe maker's revenue also beat forecasts, with digital sales up 69%.

CSX (CSX) reported quarterly earnings of 43 cents per share, 5 cents above estimates, with the railroad operator's revenue exceeding estimates as well. The beat was driven by an increase in shipping volumes that was 3% above the strong year-ago level. CSX shares rallied 3.9% in premarket trading.

Tenet Healthcare (THC) earned an adjusted $1.99 per share for its latest quarter. Revenue also beat estimates and it raised its full-year outlook. Tenet's results got a boost from increased admissions as well as a jump in revenue per admission. The stock jumped 4% in premarket action.

Unilever (UL) gained 1.3% in premarket trading after the consumer products giant reported better than expected quarterly results. The maker of Dove soap and Hellman's mayonnaise was able to raise prices to offset higher input costs, but warned that it expects inflation was likely to accelerate in 2022.

The Wall Street Journal reports activist investor Elliott Management has taken a "substantial" stake in Canadian National Railway (CNI). Another activist investor, TCI Fund Management, already has a more than 5% stake in Canadian National. Shares were flat in the premarket.

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