GM To Cut North American Production Due To Chip Shortage

Thirty-Year Bond Auction Attracts Above Average Demand

After yesterday’s announcement of above average demand for this month’s ten-year note auction, the Treasury Department revealed on Thursday that this month’s auction of $24 billion worth of thirty-year bonds also attracted strong demand.

The thirty-year bond auction drew a high yield of 1.910 percent and a bid-to-cover ratio of 2.49.

Last month, the Treasury sold $27 billion worth of thirty-year bonds, drawing a high yield of 2.040 percent and a bid-to-cover ratio of 2.21.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous thirty-year bond auctions had an average bid-to-cover ratio of 2.31.

Zscaler, Inc. Q4 adjusted earnings Beat Estimates

Below are the earnings highlights for Zscaler, Inc. (ZS):

-Earnings: -$81.0 million in Q4 vs. -$49.5 million in the same period last year.
-EPS: -$0.59 in Q4 vs. -$0.38 in the same period last year.
-Excluding items, Zscaler, Inc. reported adjusted earnings of $20.3 million or $0.14 per share for the period.
-Analysts projected $0.09 per share
-Revenue: $197.1 million in Q4 vs. $125.8 million in the same period last year.

Next quarter EPS guidance: $0.12
Next quarter revenue guidance: $210-$212 million

European Economics Preview: Eurozone Final Composite PMI, Retail Sales Data Due

Final Purchasing Managers’ survey results and retail sales from the euro area are due on Friday, headlining a light day for the European economic news.

At 3.00 am ET, consumer and producer prices are due from Turkey. Economists forecast inflation to slow marginally to 18.7 percent from 18.95 percent in July.

In the meantime, retail sales from Hungary and GDP data from Slovakia are due.

At 3.15 am ET, IHS Markit releases Spain services Purchasing Managers’ survey data. The index is seen at 61.5 in August versus 61.9 a month ago.

At 3.45 am ET, Italy’s services PMI data is due. Economists forecast the composite indicator to rise to 58.5 in August from 58.0 in the previous month.

Final PMI survey results are due from France and Germany at 3.50 am and 3.55 am ET, respectively.

At 4.00 am ET, Eurozone final PMI data is due. The composite index is seen at 59.5 in August, unchanged from the flash estimate.

Half an hour later, UK IHS Markit/CIPS final PMI data is due. Economists expect the services PMI to match the flash score of 55.5 in August.

At 5.00 am ET, Eurostat publishes euro area retail sales for July. Sales are forecast to climb 0.1 percent on month after rising 1.5 percent in June.

Dave & Buster’s Q2 Results Trounce Street; Shares Up 6%

Shares of Dave & Buster’s Entertainment, Inc. (PLAY) gained over 6% in extended trading session on Thursday after the company reported second-quarter results, with both earnings and revenues trumping Wall Street estimates.

Dave & Buster’s reported second-quarter profit of $52.8 million or $1.07 per share, compared to a loss of $58.6 million or $1.24 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.58 per share for the quarter.

Revenues for the quarter surged to a record $377.6 million from $50.8 million last year. Analysts had a consensus revenue estimate of $358.46 million for the quarter.

Overall, comparable store sales increased 3.6% compared with the same period in 2019.

Looking forward to the third quarter, the company expects comparable store sales to be approximately in line with the quarter-to-date trends compared to third quarter 2019.

PLAY closed Thursday’s trading at $35.44, up $0.67 or 1.93%, on the Nasdaq. The stock further gained $2.13 or 6.01% in the after-hours trade.

TSA to double minimum fines for air travelers who refuse to wear masks to $500

  • The TSA previously fined travelers who refuse to wear masks $250 and up to $3,000 for repeat offenders.
  • The Biden administration last month extended the mask mandate for air travel and other forms of transportation through Jan. 18.

Air travelers who refuse to wear masks could soon face fines of up to $3,000.

The Transportation Security Administration is planning to double fines for travelers who refuse to follow a federal mask mandate for air travel, a senior Biden administration official said. Minimum fines will double, starting at $500, and go up to $3,000 for repeat offenders.

The Biden administration last month extended the federal mask mandate for air, bus and train travel through Jan. 18 in an effort to slow the spread of Covid-19 as infections surged around the country. It had been set to expire in mid-September.

Airline crews have been tasked with enforcing the federal mask policy on planes and have repeatedly complained about a surge in unruly passenger behavior, many of those cases tied to violations of the mandate.

Disputes over following the federal mask rules on planes were cited in nearly 75% of the close to 4,200 cases of unruly passengers the Federal Aviation Administration received this year.

Review: In ‘Scenes From a Marriage,’ a Couple Unhappy in the Same Way

Hagai Levi’s adaptation echoes the passion of Bergman’s original, but it doesn’t make the case for a new version.

By James Poniewozik

GM To Cut North American Production Due To Chip Shortage

Auto giant General Motors Co. (GM) Thursday said it will temporarily halt its North American vehicle production as global chip shortage worsens.

According to Detroit Free Press, GM has said that its Arlington Assembly in Texas, where it makes its full-size SUVs, will run regular production next week, along with Flint Assembly, Bowling Green Assembly in Kentucky, and a portion of Lansing Grand River Assembly. But all other assembly plants in North America will idle starting Monday for two weeks.

“All the announcements we made today are related to the chips shortage, the only plant down that’s not related to that, is Orion Assembly,” said GM spokesman Dan Flores, referring to that plant’s shutdown over Chevy Bolt recall issues.

“Although the situation remains complex and very fluid, we remain confident in our team’s ability to continue finding creative solutions to minimize the impact on our highest-demand and capacity-constrained vehicles,” the company added in a statement Thursday.

The shortage of chipsets, which started during the first half of the year, has worsened in the past few months and has severely impacted production of electric vehicles, mobile phones, and computers. Moving ahead, experts expect the problem to continue well into 2022.