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Market Wrap

Markets turn red as traders take risk off the table

The S&P 500, Nasdaq 100, and Russell 2000 all finished down on Thursday.

The high-flying, more speculative pockets of the market got crushed today as volatility rose and traders went risk off.

AI trade jitters returned and job numbers from private consulting firm Challenger, Gray, and Christmas that said job cuts in October were the steepest in 22 years spooked the market.

The S&P 500 was off over 1%, the Nasdaq 100 finished nearly 2% lower, and the Russell 2000 dipped roughly 1.6%.

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Archer Aviation sinks after reporting better-than-expected Q3 loss, announces it will acquire LA’s Hawthorne Airport

Air taxi maker Archer Aviation reported its Q3 results on Thursday, and its shares climbed more than 6% before turning negative.

The company posted a loss per share of $0.20, better than the $0.30 loss analysts polled by FactSet expected.

Archer announced it would acquire Los Angeles’ Hawthorne Airport for $126 million as a strategic hub for its planned LA air taxi network.

Cash is vital for Archer, which is without revenue as it seeks FAA certification. The company ended its third quarter with $1.64 billion in cash (and equivalents), down from last quarter’s $1.72 billion but more than 3x the amount from the same period a year ago.

Archer’s rival Joby Aviation, which reported its third-quarter results on Wednesday, has a cash pile of $978.1 million.

Archer reported adjusted operating expenses of $121.2 million. Looking ahead, Archer said it expects adjusted earnings before interest and taxes to be a loss of between $110 million and $140 million for the fourth quarter. Wall Street expected a $120 million loss.

Earlier this week, Archer shares fell amid the IPO of its electric aircraft rival Beta Technologies. Archer shares are down about 9% this year as of Thursday’s close, far underperforming Joby’s growth of 76%.

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