The daily business briefing: November 11, 2021
Inflation hits highest pace in 31 years, Musk sells nearly $5 billion in Tesla shares, and more
1. Inflation accelerates to fastest pace in 31 years
Inflation jumped to a 6.2 annual rate in October, the highest in the United States since 1990, the Labor Department reported Wednesday. On a monthly basis, prices rose by 0.9 percent, up from a 0.4 percent increase in September. The October acceleration in the consumer price index came as the pandemic continued to cause supply disruptions and demand remained strong. It was the fifth straight month with the annual pace rising by 5 percent or more. The core price index, which leaves out volatile food and energy costs, rose by 4.6 percent in October compared to a year earlier, the biggest increase since 1991. That was up from a 4 percent annual rise in September.
2. Musk sells $5 billion worth of Tesla shares
Tesla CEO Elon Musk sold nearly $5 billion worth of shares in the electric car company after a majority of Twitter poll respondents said he should unload 10 percent of his stake in the company. Musk exercised options on 2.1 million shares Monday, then sold nearly half for about $1.1 billion, according to a filing with securities regulators. He sold more on Tuesday and Wednesday, raising another $3.8 billion. The sale was "solely to satisfy [Musk's] tax withholding obligations related to the exercise of stock options," the filing on the first sale said. Investors had known Musk would have to sell stock to cover his $15 billion tax bill, but the company's stock fell after the Twitter poll because 10 percent was more than many expected.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
3. Biden to sign infrastructure bill on Monday
President Biden will sign the more than $1 trillion bipartisan infrastructure bill on Monday, the White House announced Wednesday. The legislation amounts to the biggest federal investment in upgrading the nation's roads, bridges, ports, and other infrastructure in "generations," the White House said. Members of Congress who crafted the bill will join Biden for the signing ceremony. "The President will highlight how he is following through on his commitment to rebuild the middle class and the historic benefits the Bipartisan Infrastructure Deal will deliver for American families," with the plan providing "millions of good-paying, union jobs for working people" and strengthening supply chains, the White House said in a press release.
4. Rivian shares soar after huge IPO
Shares of electric-truck startup Rivian soared in its market debut Wednesday. Rivian set its initial public offering price at $78. The stock opened at $106.75, and later traded as high as $112, an increase of 43 percent over the IPO price. The startup's surge gave it a market value of more than $100 billion on a fully diluted basis, vaulting it past Ford, General Motors, and other established automakers. Rivian has attracted investors like Ford and Amazon with its plan to help push EVs into the mainstream with an electric pickup, an SUV, and a delivery van. "The IPO represents an opportunity to accelerate how quickly we can go," said Rivian founder and CEO RJ Scaringe. "We have to go build a lot of vehicles."
5. Stock futures rise after Wednesday's losses
U.S. stock index futures gained early Thursday after Wednesday's selloff, which was led by tech stocks. Futures tied to the Dow Jones Industrial Average were up by 0.1 percent several hours before the opening bell. Futures for the S&P 500 and the tech-heavy Nasdaq rose by 0.3 percent and 0.6 percent, respectively. Disney shares dropped by more than 4 percent overnight after the entertainment giant reported disappointing quarterly results and Disney+ subscribers fell short of expectations. The Dow and the S&P 500 fell by 0.7 percent and 0.8 percent, respectively, on Wednesday. The Nasdaq dropped by 1.7 percent after a government report showing an inflation jump.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
6 scenic white water rafting destinations to get your heart racing
The Week Recommends Have a rip-roaring time on the water
By Catherine Garcia, The Week US Published
-
Dangerous substances in Lunchables are raising concerns over children's health
In the Spotlight High levels of lead and sodium were recently found in the snack packages
By Justin Klawans, The Week US Published
-
The Week contest: Fired art
Puzzles and Quizzes
By The Week US Published
-
The wine industry is getting pressed as young people drink less
Under the Radar The once-dominating drink is not aging well
By Anya Jaremko-Greenwold, The Week US Published
-
The largest insurance company payouts
In The Spotlight Fights over insurance have been in the spotlight following the collapse of the Francis Scott Key Bridge in Baltimore
By Justin Klawans, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Disney is engaged in a proxy battle against activist investors
Under the Radar Members of the Disney family are backing the company's leadership in the fight
By Justin Klawans, The Week US Published
-
Chinese electric cars may be coming to spy on you
Talking Points The Biden administration investigates Chinese electric cars as a potential economic and national security threat
By Harold Maass, The Week US Published
-
Wendy's dynamic pricing change could upend the fast food industry
Under the Radar But the fast food chain will not be implementing the change in the typical manner
By Justin Klawans, The Week US Published