Markets bounce as Tesla surges, yields retreat
A look at the day ahead in U.S. and global markets from Mike Dolan
Markets caught a break on Thursday as the white heat of the corporate earnings season saw a beat for megacap Tesla TSLA.O that sent its shares surging 12% before the bell while bond yields beat a retreat on soft business surveys overseas.
There was also some wariness that recent pre-election trades betting on a win for Republican Donald Trump in next month's White House race may be a tad premature. There's still no clear indication from polling on how the close contest will break, with nearly 25 million early votes already cast, according to tracking data.
With U.S. flash business surveys for October and weekly jobless claims data due out later, the relentless rise in Treasury yields over the past week seemed to cool and 10-year yields US10YT=RR fell back below 4.2% after the prior session's Wall Street stock swoon .SPX, .IXIC.
Even though Federal Reserve easing projections over the next year have been pegged back by as much as 50 basis points over the past month, rate cut fever remains rife abroad.
The Bank of Canada sliced 50bps off its policy rates on Wednesday and sub-forecast euro zone business surveys for October continued to show the regional economy there in contraction this month, keeping speculation of accelerated European Central Bank easing alive.
In Japan too, business surveys showed shrinking activity this month and Bank of Japan governor Kazuo Ueda on Wednesday indicated he was in no rush to 'normalise' rates there further - even if he remained wary of excessive yen JPY= weakness.
Japan's Finance Minister Katsunobu Kato then issued a warning against currency speculation on Wednesday, expressing concern over "one-sided, rapid" moves in the currency market.
With that and the cue from ebbing Treasury yields, the dollar .DXY retreated broadly from near three-month highs and dipped back below 152 yen.
For stocks, however, it was hard to see beyond the torrent of incoming earnings updates.
And Tesla's beat stole the show overnight - lifting Wall Street stock futures by a half point or more ahead of Thursday's open.
Shares in the electric vehicle giant shot up nearly 12% in pre-market trade after it forecast surging car sales growth and CEO Elon Musk reassured investors he was still looking to expand the company's core EV business.
The stock jump set the company up to add around $80 billion to its market capitalization and will likely wipe out nearly all the year-to-date losses when trading resumes today.
But it wasn't all sweetness and light on the corporate front and Boeing's stock BA.N plunged 4% overnight on news that its factory workers voted to reject a contract offer and continue a more than five-week strike.
The strike news compounded the previous day's dour earnings news, which saw the planemaker rack up losses of nearly $8 billion for a torrid year that also included a quality crisis from January's mid-air panel blowout.
Boeing CFO Brian West said he expects the company will continue burning cash in full year 2025 and the last three months of 2024, sending shares of down almost 2% on Wednesday.
European and UK stocks .STOXX, .FTSE advanced early today, however, amid more positive updates from British bellwethers Unilever ULVR.L, Anglo American AAL.L and Barclays BARC.L that sent each of those stocks up 4%.
The euro EUR= was helped a touch by comments from ECB President Christine Lagarde on Wednesday that policymakers should remain cautious about further easing.
By contrast with Europe, China and Hong Kong stocks fell and mainland gauges .CSI300 snapped a four-day winning streak as investors grew cautious about domestic stimulus measures and weighed the potential impact from the U.S. election.
Back on Wall Street, the tussle for attention between robust growth, dampened Fed expectations, election risks and a heavy earnings diary with big industrial names on the diary was set to make for another noisy session.
The Fed's latest Beige Book on economic conditions released on Wednesday showed U.S. economic activity was little changed from September through early October while firms saw an uptick in hiring.
Key developments that should provide more direction to U.S. markets later on Thursday:
* Flash October business surveys for the United States and around the world from S&P Global, weekly jobless claims, Sept new home sales, Kansas City Federal Reserve Oct business surveys
* International Monetary Fund and World Bank Annual Meetings in Washington, speakers include Bank of England Governor Andrew Bailey, BoE policymaker Catherine Mann and European Central Bank chief economist Philip Lane
* Cleveland Fed President Beth Hammack speaks
* US corporate earnings: Dow, Honeywell, UPS, Northrop Grumman, Valero, DTE, Capital One, KKR, Nasdaq, S&P Global, Principal Financial, Cincinnati Financial, CBRE, Allegion, Textron, Western Digital, L3Harris, VeriSign, Hasbro, Keurig Dr Pepper, Universal Health, Southwest Airlines, Mohawk, Weyerhauser, Dexcom, Edwards Lifesciences, Dover, Union Pacific etc
* US Treasury auctions 5-year inflation protected securities
* German Chancellor Olaf Scholz meets India's Prime Minister Narendra Modi in New Delhi
Market horizon for Fed rates up more than 50bps in a month https://tmsnrt.rs/3BY2zOV
U.S. businesses expect conditions to improve https://reut.rs/4hfrEF3
Dueling PMI indexes https://reut.rs/3Y7ghHO
Tesla's profit margin from vehicle sales gains in Q3 https://reut.rs/4fgLEoV
Boeing's losses balloon in the third quarter https://reut.rs/3C51417
(By Mike Dolan,
mike.dolan@thomsonreuters.com)
අදාළ වත්කම්
නවතම පුවත්
වියාචනය: XM Group සමාගම් ක්රියාත්මක කිරීම පමණක් වන සේවා සපයන අතර වෙබ් අඩවියේ හෝ වෙබ් අඩවිය හරහා ලබා ගත හැකි අන්තර්ගතය බැලීමට සහ/හෝ භාවිත කිරීමට පුද්ගලයෙකුට ඉඩ සලසමින් අපගේ මාර්ගගත වෙළඳ පහසුකම වෙත ප්රවේශය ලබා දෙන අතර වෙනස් කිරීමට හෝ පුළුල් කිරීමට අදහස් නොකරයි. එවැනි ප්රවේශය සහ භාවිතය සෑම විටම (i) නියමයන් සහ කොන්දේසි, (ii) අවදානම් අනතුරු ඇඟවීම් සහ (iii) සම්පූර්ණ වියාචනයට යටත් වේ. එබැවින් එවැනි අන්තර්ගතයක් සාමාන්ය තොරතුරුවලට වඩා වැඩි යමක් සපයා නොමැත. විශේෂයෙන්ම, අපගේ මාර්ගගත වෙළඳ පහසුකමේ අන්තර්ගතය පෙළඹවීමක් හෝ මූල්ය වෙළඳපොළවල කිසිදු ගනුදෙනුවක් සිදු කිරීමට ඉදිරිපත් කිරීමක් නොවන බව කරුණාවෙන් සලකන්න. ඕනෑම මූල්ය වෙළඳපොළක වෙළඳාම් කිරීම ඔබේ ප්රාග්ධනයට සැලකිය යුතු අවදානමක් එක් කරයි.
අපගේ මාර්ගගත වෙළඳ පහසුකමේ ප්රකාශිත සියලු කරුණු අධ්යාපනික/තොරතුරුමය අරමුණු සඳහා පමණක් අදහස් කෙරෙන අතර මූල්ය, ආයෝජන බදු හෝ වෙළඳ උපදෙස් සහ නිර්දේශයන්; හෝ අපගේ වෙළඳ මිල පිළිබඳ වාර්තාවක්; හෝ ඕනෑම මූල්ය උපකරණයක ඉදිරිපත් කිරීමක් හෝ ඒ සඳහා පෙළඹවීමක්; හෝ විශේෂ ඉල්ලීමකින් තොරව ඔබ වෙත ලබා දෙන ලද මූල්ය ප්රවර්ධනයන් ලෙස නොසැලකිය යුතුය.
ඕනෑම තෙවන පාර්ශවීය අන්තර්ගතයක් මෙන්ම XM විසින් සකසන ලද අන්තර්ගතය එනම් අදහස්, පුවත්, පර්යේෂණ, විශ්ලේෂණ, මිල ගණන් සහ වෙනත් තොරතුරු හෝ මෙම වෙබ් අඩවියේ අන්තර්ගත තෙවන පාර්ශවීය වෙබ් අඩවි සඳහා සබැඳි සාමාන්ය වෙළඳපොළ විවරණයක් ලෙස "පවතින පරිදි" සපයා ඇති අතර එහි ආයෝජන උපදෙස් ඇතුළත් නොවේ. ඕනෑම අන්තර්ගතයක් ආයෝජන පර්යේෂණයක් ලෙස අර්ථ දක්වා ඇති ප්රමාණයට, ආයෝජන පර්යේෂණයේ ස්වාධීනත්වය ප්රවර්ධනය කිරීමට නිර්මාණය කර ඇති නෛතික අවශ්යතාවලට අනුකූලව අන්තර්ගතය සකසා නොමැති බවත් එලෙස අරමුණු කර නොමැති බවත් ඔබ සලකා පිළිගත යුතු අතර එබැවින් එය අදාළ නීති සහ රෙගුලාසි යටතේ අලෙවිකරණ සන්නිවේදනයක් ලෙස සලකනු ලැබේ. ඉහත සඳහන් තොරතුරු සලකා මෙතනින් ප්රවේශ විය හැකි, ස්වාධීන නොවන ආයෝජන පර්යේෂණ සහ අවදානම් අනතුරු ඇඟවීම පිළිබඳ අපගේ දැනුම්දීම ඔබ කියවා තේරුම් ගෙන ඇති බව සහතික කර ගන්න.
