WASHINGTON (Reuters) -SpaceX postponed its second attempt to launch the company’s Starship rocket system into space by a day to Saturday, Chief Executive Elon Musk said, citing a piece of flight control hardware that needed replacing.

“We need to replace a grid fin actuator, so launch is postponed to Saturday,” Musk wrote on messaging platform X.

The launch is set to take place at the company’s Starbase site on the Gulf of Mexico near Boca Chica, Texas.

SpaceX is aiming to make a second attempt at launching its 400-foot-tall (122 meters) Starship rocket system into space for the first time, following an April test flight in which the rocket exploded roughly four minutes after lifting off from Texas.

Company officials have said the rocket has been ready to fly for months, pending approval of a license by the U.S. Federal Aviation Administration, which the company obtained on Wednesday.

The upcoming flight is one of many crucial tests in SpaceX’s development campaign to build a fully reusable rocket capable of sending some 150 tons of satellites into space, as well as humans to the moon and eventually Mars.

(Reporting by Joey Roulette; Editing by Chris Reese and Will Dunham)

Goldman Sachs Strategists Forecast More Stock Gains into 2024

More gains are on the way in the equity markets. That is the stance held by strategists at Goldman Sachs, who believe there is still some room for equities to edge higher after an impressive 2023. The remarks come on the heels of the S&P 500 rallying by about 17% year to date, with tech-heavy Nasdaq 100 rallying by over 40% on growing risk appetite.

Goldman Sachs Estimates

The team at Goldman Sachs led by David Kostin expects the Bull Run to persist into 2024, aided by the Federal Reserve’s slow monetary policy tightening.  The S&P 500 has been on an upward trajectory in 2023 as equities continue to withstand high-interest rates. Easing inflation has convinced the Fed to go slow on hikes and has also helped bolster sentiments.

The investment bank projects that the S&P 500 will close 2024 at 4,700 points, implying a 5% upside potential from current levels. However, this gain will be much lower than the 17% rally registered this year.

A second year of gains in 2024 would mark a significant turnaround from the bear run in 2022 that saw most counters tumble by double-digit percentage points. The slump came at the back of soaring inflationary pressure and the Fed’s aggressive monetary policy tightening spree.

Goldman Sachs’s bullish thesis depends on the US economy avoiding a recession. There have been fears that the Federal Reserve’s sticking to the high-interest rate environment could cause a mild recession. With the Fed unlikely to cut interest rates until mid-next year, the economy could heat up.

Equities came under pressure in the third quarter amid fears that the Fed will continue hiking interest rates instead of cutting at year-end. While fears have subsided regarding the Fed’s pausing of hikes for two consecutive meetings, there is still a chance the economy could plunge into recession due to the high-interest rate environment.

Equities Outlook

Nevertheless, the economy avoiding recession is not the only factor that Goldman Sachs expects to offer support to rallies in the equity market. The strategists expect rising earnings to have a significant impact in fuelling investor interest in equities. Valuations remaining steady should also continue to fuel risk appetite in the equities market.

Kostin and the team expect returns in the equity markets to be concentrated in the second half of next year due to resilient growth. Nevertheless, the looming US election is a major headwind that could suppress market risk appetite. However, later in the year, election resolution and a possible Federal Reserve Interest rate cut could offer the market the much-needed lift heading into 2025.

Strategists at Goldman Sachs are not the only ones overly bullish about US equities. Strategists at Morgan Stanley, led by Stanley Wilson, a staunch bear, have also taken a more positive view of stocks. Strategists at Bank of America insist investors expect a soft landing next year and remain overweight stocks and bonds.

The investment bank forecasts are supported by cooler-than-expected October US inflation data showing slowing inflationary pressures. The data signals that the Federal Reserve may not raise rates again, something that works in favor of equities.

(Reuters) – Elon Musk on Wednesday denied a report that his rocket company SpaceX was discussing an initial public offering (IPO) for its satellite internet business, Starlink, as soon as 2024.

He called it “false” in a reply to a post on social media platform X that shared a Bloomberg News report saying SpaceX had been moving the unit’s assets to a wholly owned unit that would ultimately be spun off.

The billionaire entrepreneur has previously said he intended to list Starlink when revenue growth and cash flow became smooth and predictable. Earlier this month, he said Starlink had achieved cash-flow breakeven.

SpaceX has an estimated value of $150 billion and was the first private company to send humans into orbit. Its breakthroughs have left rivals, including Jeff Bezos’ Blue Origin scrambling to keep pace as reusable rockets significantly reduce launch costs.

The Starlink unit is the world’s largest satellite operator. On Wednesday, it obtained a contract to offer free internet in Mexico until the end of 2026.

“I believe he (Musk) will take Starlink out, not next year, but maybe 2025, 2026. He’s waiting for a level of stability or predictability in revenue,” said Justus Parmar, founder and CEO of venture capital firm Fortuna Investments.

When the IPO happens, it will “be an extremely strong catalyst for everything space related”, Parmar said.

(Reporting by Niket Nishant and Akash Sriram in Bengaluru; Editing by Anil D’Silva and Arun Koyyur)

By Arathy Somasekhar

HOUSTON (Reuters) -Oil prices tumbled more than 1.5% on Wednesday on a bigger-than-expected rise in U.S. crude inventories and record production in the world’s biggest producer, along with mounting worries about demand in Asia.

Brent futures settled down $1.29, or 1.6%, at $81.18 a barrel. U.S. West Texas Intermediate crude (WTI) fell $1.60, or 2%, at $76.66.

WTI’s front month contract was also lower than the second month, or in contango, for the first time since July. Prices for oil six months ahead also looked poised to rise above front month contract.

U.S. crude stocks rose by 3.6 million barrels last week to 421.9 million barrels, according to the U.S. Energy Information Administration (EIA), far exceeding analysts’ expectations in a Reuters poll for a 1.8 million-barrel rise. [EIA/S]

The weekly government data, which was not published last week due to systems upgrade, also showed U.S. crude production was holding at a record 13.2 million barrels per day that it hit in October.

“U.S. supply activity is headwind for the market, and U.S. is a problem for OPEC+,” said John Kilduff, partner at Again Capital LLC in New York, adding he does not think Saudi Arabia can cut more output to boost prices.

Top oil exporters Saudi Arabia and Russia, part of OPEC+, the Organization of the Petroleum Exporting Countries and allies, said this month they would continue with their additional voluntary oil output cuts until year end.

U.S. gasoline stocks showed strong demand with a surprise draw of 1.5 million barrels last week. Diesel inventories fell more than expected at 1.4 million barrels.

The International Energy Agency on Tuesday joined OPEC in raising oil demand growth forecasts for this year, despite projections of slower economic growth in many major countries.

China’s oil refinery throughput eased in October from the previous month’s highs as industrial fuel demand weakened and refining margins narrowed. Still, its economic activity perked up in October as industrial output increased at a faster pace and retail sales growth beat expectations.

Japan’s economy contracted in July-September, snapping two straight quarters of expansion on soft consumption and exports.

U.S. retail sales fell in October for the first time in seven months.

European Union diplomats said Russian oil tankers are not targeted in the European Commission’s proposal for tightening implementation of a price cap on the country’s crude oil.

Earlier, the Financial Times reported that Denmark will be tasked with inspecting and potentially blocking Russian tankers sailing through its waters under new EU plans as a way of enforcing a $60 per barrel price cap on Moscow’s crude.

(Reporting by Arathy Somasekhar in Houston, Paul Carsten in London and Sudarshan Varadhan and Laura Sanicola; Editing by Marguerita Choy and David Gregorio)

(Reuters) – Bitcoin, the world’s largest cryptocurrency, rose more than 5.3% on Wednesday to $37,978, near a one-week high. It has risen about 125% so far this year.

While bitcoin remains far from the investment fever pitch it hit in late 2021, the crypto sector has enjoyed a rally in recent weeks as the expected end of central bank rate-hiking cycles draws cash back into high-risk assets.

(Reporting by Hannah Lang in Washington; Editing by Chris Reese)

(This Nov. 14 story has been corrected to change the first-class mail volume figure to say 46 billion, not 46 million, in paragraph 5)

By David Shepardson

WASHINGTON (Reuters) – The U.S. Postal Service on Tuesday reported a $6.5 billion net loss for the 12 months ending Sept. 30 and said it will not breakeven next year as first-class mail fell to the lowest volume since 1968.

The Postal Service said revenue fell 0.4% to $78.2 billion results. U.S. Postmaster General Louis DeJoy said the loss includes $2.6 billion in inflation costs “above what we projected and what we were able to recover… We are not happy with this result.”

The agency has been aggressively hiking stamp prices and is in the middle of a 10-year restructuring plan announced in 2021 that aims to eliminate $160 billion in predicted losses over the next decade and had forecast 2023 as a breakeven year.

“Despite substantial planned reductions in our cost of operations and growth in our package revenues, we will not reach breakeven results in 2024,” DeJoy said, noting USPS has reduced the $160 billion in losses projected in 2021 “to less than $60 billion,” DeJoy said.

First-class mail volume fell 6.1% in 2023 to 46 billion pieces and is down 53% since 2006, but revenue increased by $515 million because of higher stamp prices.

The net loss was also impacted by accounting for its underfunded retirements caused by actuarial revaluation and discount rate changes. USPS, which has 640,000 employees reported a 2.6% increase in employee compensation and benefits costs to $52.8 billion. USPS plans to cut $1 billion in transportation costs next year.

Total operating expenses were $85.4 billion for the year, an increase of $5.8 billion, or 7.3%. USPS said to preserve liquidity it did not make the full $5.1 billion in retirement plan payments due.

In April 2022, U.S. President Joe Biden signed legislation providing USPS with about $50 billion in financial relief over a decade.

Last month, USPS said it was seeking approval to raise the price of first-class stamps to 68 cents from 66 cents effective Jan. 21. Stamp prices are up 32% over the last four years since early 2019 when they were 50 cents.

First-class mail, used by most people to send letters and pay bills, is the highest revenue-generating mail class, accounting for $24.5 billion, or 31% of USPS 2023 revenue.

(Reporting by David Shepardson; Editing by Chris Reese and Aurora Ellis)

By Arathy Somasekhar

HOUSTON (Reuters) -Oil prices fell on Wednesday on a bigger-than-expected rise in U.S. crude inventories and record production in the world’s biggest producer, along with mounting worries about demand in Asia.

Brent futures were down 97 cents to $81.47 a barrel at 11:35 a.m. ET (16:35 GMT). U.S. West Texas Intermediate (WTI) crude was down $1.31 to $76.94.

U.S. crude stocks rose by 3.6 million barrels in the latest week to 421.9 million barrels, according to the U.S. Energy Information Administration (EIA), far exceeding analysts’ expectations in a Reuters poll for a 1.8 million-barrel rise. [EIA/S]

U.S. domestic crude production stayed at a record 13.2 million barrels per day, the data showed.

“U.S. supply activity is headwind for the market, and U.S. is a problem for OPEC+,” said John Kilduff, partner at Again Capital LLC in New York, adding that he does not think Saudi Arabia can cut more output to boost prices.

Top oil exporters Saudi Arabia and Russia said this month they would continue with their additional voluntary oil output cuts until the end of the year.

In an indication of strong demand, U.S. gasoline stocks saw a surprise draw of 1.5 million barrels, while diesel stocks drew more than expected at 1.4 million barrels.

EIA released data for 2 consecutive weeks on Wednesday, after a delay last week due to a systems upgrade.

American Petroleum Institute figures on Tuesday had showed rising crude oil and gasoline inventories last week, according to market sources. [API/S]

Weighing on demand were economic worries in Asia. China’s oil refinery throughput eased in October from the previous month’s highs as industrial fuel demand weakened and refining margins narrowed. Still, economic activity there perked up in October as industrial output increased at a faster pace and retail sales growth beat expectations.

Japan’s economy contracted in July-September, snapping two straight quarters of expansion on soft consumption and exports.

U.S. retail sales also fell for the first time in seven months in October.

The International Energy Agency joined the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in raising oil demand growth forecasts for this year, despite projections of slower economic growth in many major countries.

Meanwhile, the Financial Times reported on Wednesday that Denmark will be tasked with inspecting and potentially blocking tankers with Russian oil sailing through its waters under new European Union plans, as the West explores more ways of enforcing a price cap on Moscow’s crude. However, it is still to be seen how Denmark will enforce this.

Elsewhere, the European Union reached a deal on Wednesday on a law to place methane emissions limits on Europe’s oil and gas imports from 2030, pressuring international suppliers to clamp down on leaks of the potent greenhouse gas.

(Reporting by Arathy Somasekhar in Houston, Paul Carsten in London and Sudarshan Varadhan and Laura Sanicola; Editing by Raju Gopalakrishnan, Mark Potter, Jane Merriman, Emelia Sithole-Matarise, Alexandra Hudson and David Gregorio)

By Paul Carsten

LONDON (Reuters) -Oil prices dipped on Wednesday due to expectations of an increase in U.S. crude stocks amid record high output in the world’s biggest producer and despite positive demand signs from top consumer China.

Brent futures were down 69 cents to $81.78 a barrel at 1346 GMT, while U.S. West Texas Intermediate (WTI) crude was down 78 cents to $77.48.

In signs of healthy U.S. crude supply, American Petroleum Institute figures on Tuesday showed rising crude oil and gasoline inventories last week, according to market sources.

The U.S. Energy Information Administration (EIA) will also release on Wednesday its first oil inventory report in two weeks, after a delay last week due to a systems upgrade. [EIA/S]

In good news for demand, China’s economic activity perked up in October as industrial output increased at a faster pace and retail sales growth beat expectations, an encouraging sign for the world’s second-largest economy.

The International Energy Agency joined the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in raising oil demand growth forecasts for this year, despite projections of slower economic growth in many major countries.

“With China being a scapegoat for much of the world’s lack of industrial demand, this glimmer of light ought to aid oil’s progress but the reluctance is so far winning out,” John Evans of oil broker PVM said in a note.

Downward pressure on oil prices may come from the supply side, with the United States “likely at peak production for crude,” while the delayed release of its oil data makes the investment situation more opaque, Evans said.

The Financial Times reported on Wednesday that Denmark will be tasked with inspecting and potentially blocking tankers with Russian oil sailing through its waters under new European Union plans, as the West explores more ways of enforcing a price cap on Moscow’s crude.

However, it is still to be seen how Denmark will enforce this.

A softer U.S. inflation reading that bolstered expectations for an interest rate cut by the Federal Reserve next spring sent the U.S. dollar down to a 2-1/2 month low against a basket of other currencies. A weaker dollar can boost oil demand by making crude cheaper for buyers using other currencies.

British inflation also cooled in October, and more than expected, reinforcing expectations that the Bank of England’s hiking cycle has ended, with the Federal Reserve and European Central Bank also seemingly having reached the peak for interest rates.

Elsewhere, the European Union reached a deal on Wednesday on a law to place methane emissions limits on Europe’s oil and gas imports from 2030, pressuring international suppliers to clamp down on leaks of the potent greenhouse gas.

(Reporting by Paul Carsten in London and Sudarshan Varadhan and Laura Sanicola; Editing by Raju Gopalakrishnan, Mark Potter, Jane Merriman and Emelia Sithole-Matarise)

By Paul Carsten

LONDON (Reuters) -Oil prices dipped on Wednesday amid signs the United States, the world’s biggest oil producer, is at peak production, offsetting positive crude demand signals from top consumer China.

Brent futures were down 34 cents to $82.13 a barrel at 0949 GMT, while U.S. West Texas Intermediate (WTI) crude was down 40 cents to $77.86.

China’s economic activity perked up in October as industrial output increased at a faster pace and retail sales growth beat expectations, an encouraging sign for the world’s second-largest economy.

The International Energy Agency joined the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in raising oil demand growth forecasts for this year, despite projections of slower economic growth in many major countries.

“With China being a scapegoat for much of the world’s lack of industrial demand, this glimmer of light ought to aid oil’s progress but the reluctance is so far winning out,” said John Evans of oil broker PVM in a note.

Downward pressure on oil prices may come from the supply side, with the United States “likely at peak production for crude,” while the delayed release of oil data from the world’s biggest producer makes the investment situation more opaque, Evans said.

The U.S. Energy Information Administration (EIA) will release its first oil inventory report in two weeks on Wednesday, after a delay last week due to a systems upgrade. [EIA/S]

The Financial Times reported on Wednesday that Denmark will be tasked with inspecting and potentially blocking Russian oil tankers sailing through its waters under new European Union plans, as the West explores more ways of enforcing a price cap on Moscow’s crude.

However, it is still to be seen how Denmark will enforce this.

A softer U.S. inflation reading that bolstered expectations for an interest rate cut by the Federal Reserve next spring sent the U.S. dollar down to a two-and-a-half-month low against a basket of other currencies. A weaker dollar can boost oil demand by making crude cheaper for buyers using other currencies.

British inflation also cooled in October, and more than expected, reinforcing expectations that the Bank of England’s hiking cycle has ended, with the Federal Reserve and European Central Bank also seemingly having reached the peak for interest rates.

Elsewhere, the European Union reached a deal on Wednesday on a law to place methane emissions limits on Europe’s oil and gas imports from 2030, pressuring international suppliers to clamp down on leaks of the potent greenhouse gas.

(Reporting by Paul Carsten in London and Sudarshan Varadhan and Laura Sanicola; Editing by Raju Gopalakrishnan and Mark Potter)

Meta Platforms Explosive Rally After $251.3B Wipe-out

A year after suffering a $251.3 billion market value wipe-out, Meta Platforms has emerged as a Wall Street darling.  Investors who took advantage of the biggest wipe-out in history have been rewarded immensely, as the social networking giant has bounced back, more than quadrupling its market value.

Meta Platforms Bullish Thesis

While the stock is up by more than 160% for the year, investors and analysts are confident that there is still some room on the upside given the solid underlying nag fundamentals. Meta Platforms is benefiting from increased spending on advertisements on its flagship apps, Instagram and Facebook.

Likewise, a restructuring drive that commenced last year, resulting in the reduction of the workforce and a focus on areas with high growth, has strengthened its market sentiments. Consequently, the stock’s market sentiments have improved significantly, with the stock commanding 62 buy-equivalent ratings of the 70 analysts covering it. It’s the highest number since the firm went public in 2012.

The solid buy rating on Wall Street is backed by the investment thesis that Meta remains a preferred advertising platform for most advertisers. The company boasts of an unmatched scale relative to its competitors, owing to the millions of active users that flock to its Facebook and Instagram apps daily. Advertising sales have increased significantly a year after concerns they had contracted as advertisers pulled back amid inflationary pressures in the market.

CEO Mark Zuckerberg’s shelving of a multibillion-dollar plan to build a version of the metaverse has also boosted Meta Platform’s sentiments in the market. The increased focus on cost-cutting has toned down metaverse talk, and robust revenue growth affirms Meta Platform’s prospects and growth metrics.

Analysts are overly optimistic about the company’s long-term prospects, with estimates indicating the company is on course to generate $18 a share in earnings next year. It will be a significant improvement from the $10 a share generated last year. While the company’s valuation has increased significantly to about 18 times earnings over the next 12 months, Meta stock is still the cheapest stock among the seven biggest tech and internet stocks.

Meta Platforms Headwind

Nevertheless, the high earnings expectations are dependent on economic growth. The Federal Reserve has already hinted at the possibility of maintaining the high interest rates for longer in the race to push inflation below the 2% level.  The economy’s risk of plunging into recession is high, with economists projecting a mild recession amid the high-interest rate environment. A recession would hurt Meta Platform’s ability to attract revenues from its lucrative advertising business.

Competition is another headwind standing in the way of Meta Platform achieving its earning expectations. Needham & Co’s analyst Laura Martin has a sell rating on the stock, insisting that the company is a risk amid rising competition.  There is already talk that TikTok is eating into Facebook’s domain, having emerged as a favourite networking app for millions of people worldwide.

Changes to mobile operating systems like the one on Apple that hurt Meta Platform’s ability to target users with ads, is another headwind that could take a toll on the company’s prospects in the advertising business.