Tesla catches break, Meta next; TikTok countdown
A look at the day ahead in U.S. and global markets from Mike Dolan
Ailing Tesla shares TSLA.O caught a rare 10% break overnight despite the electric auto giant's quarterly revenue miss, underscoring a better market mood as Meta META.O steps up to the earnings dock later and U.S. business activity cools in April.
Deep in a global price war and hit by waning worldwide demand for electric vehicles, Tesla said its quarterly revenue fell for the first time since 2020 and by more than Wall St analysts had forecast. Revenue per vehicle plunged 5% from year ago.
But perhaps reflecting the extent of short-selling that fed this year's 42%-plus stock drop up to Tuesday's close, shares surged once the report was released after the bell - ostensibly cheered by somewhat vague plans to introduce low-cost "new models" by early 2025 and boss Elon Musk's update.
More buoyant tech stocks .NYFANG generally helped as the megacaps shape up to report their quarterlies through this week and next. The S&P500 .SPX at large clocked a second straight day of gains on Tuesday, which saw the index recover more than a third of the near-6% peak-to-trough slide this month.
Facebook parent Meta Platforms META.O, one the big winners from the artificial intelligence boom of the past 18 months and whose stock is still up more than 40% this year, reports after the market close on Wednesday.
In the background, the U.S. Senate voted by a wide margin late Tuesday in favor of legislation that would ban TikTok in the United States if its owner, the Chinese tech firm ByteDance, fails to divest the popular short video app over the next nine months to a year. The move ups the ante in the increasingly tense U.S.-China tech standoff.
The four-year battle over TikTok, which is used by 170 million people in the United States, is just one front in a war over the internet and technology between Washington and Beijing. Last week, Apple AAPL.O said Beijing had ordered it to remove Meta Platforms' WhatsApp and Threads from its App Store in China due to Chinese national security concerns.
U.S. Secretary of State Antony Blinken arrives in Shanghai on Wednesday with U.S.-China ties fragile and with a daunting array of unresolved issues between the two global rivals.
As Blinken hits Beijing, President Joe Biden will sign a bill into law that provides billions of dollars of new aid to Ukraine for its war with Russia, a bipartisan victory for the president as he seeks re-election.
Also lifting investor spirits yesterday was this month's flash U.S. business readings from S&P Global that showed a surprising slowdown in overall activity in April and ebbing price pressures and labor costs.
Even though the miss may seem worrying, markets read the report as a potential relief to the increasingly hawkish Federal Reserve - helping Fed rate futures and Treasuries rally.
Helping the $69 billion two-year note auction in the process, the report dragged two-year Treasury yields US2YT=RR back from 5% - although they continue to hover about 4.94% early on Wednesday as another $70 billion of 5-year notes is up for grabs later in the day.
The markets didn't run away with the S&P Global business survey for two reasons - they want to see any April slowdown confirmed by equivalent ISM surveys due next week and they were sideswiped by rebounding March new home sales data released shortly after.
And that kept the dollar .DXY buoyed, not least against Japan's yen JPY= - where it inched ever closer to 155 yen at 34-year highs just as the Bank of Japan meets this week.
The weak yen and rallying tech sector saw Japan's Nikkei .N225 outperform generally buoyant world stocks on Wednesday, with gains of more than 2%.
The U.S. business readings stand in contrast to the better-than-forecast purchasing managers' surveys from the euro zone and Britain.
Reinforcing those numbers on Wednesday, German business morale captured by the Ifo survey improved more than expected in April.
European bourses and Wall St futures were higher as earnings streamed in on both sides of the Atlantic.
Shares in French luxury group Kering PRTP.PA were a standout mover, falling by almost 10% in early trade to their lowest level in over 6 years as the market digested news of a likely 40%-45% plunge in first-half operating profit.
Key diary items that may provide direction to U.S. markets later on Wednesday:
* US March durable goods orders
* US corporate earnings: Meta Platforms, IBM, Ford, Boeing, Lam Research, General Dynamics, CME, AT&T, Hasbro, Norfolk Southern, Universal Health, Molina Healthcare, Amphenol, Chipotle, Masco, Bunge, Otis, Hilton, Fortive, Westinghouse, Interpublic, Teradyne, United Rentals, Tyler Technologies, Align Technology, Avery Dennison, TE Connectivity, Rollins, O'Reilly Automotive etc
* European Central Bank board member Isabel Schnabel speaks; Bank of Canada releases minutes of latest policy meeting
* US Secretary of State Antony Blinken visits China. German Chancellor Olaf Scholz meets British Prime Minister Rishi Sunak in Berlin
* US Treasury sells $70 billion of 5-year notes
World Flash manufacturing PMI https://reut.rs/3QbRk9N
Tesla's stock performance in 2024 https://reut.rs/3WcHmJ9
Tesla's revenue per vehicle plateaus even as EV maker cuts prices https://reut.rs/49NsBiV
Tesla's US sales growth has fallen with the overall market https://reut.rs/4b82GU7
EM portfolios see $32.7 billion inflows in March https://reut.rs/44gBwse
By Mike Dolan, editing by Christina Fincher, mike.dolan@thomsonreuters.com
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تازہ ترين خبريں
دستبرداری: XM Group کے ادارے ہماری آن لائن تجارت کی سہولت تک صرف عملدرآمد کی خدمت اور رسائی مہیا کرتے ہیں، کسی شخص کو ویب سائٹ پر یا اس کے ذریعے دستیاب کانٹینٹ کو دیکھنے اور/یا استعمال کرنے کی اجازت دیتا ہے، اس پر تبدیل یا توسیع کا ارادہ نہیں ہے ، اور نہ ہی یہ تبدیل ہوتا ہے یا اس پر وسعت کریں۔ اس طرح کی رسائی اور استعمال ہمیشہ مشروط ہوتا ہے: (i) شرائط و ضوابط؛ (ii) خطرہ انتباہات؛ اور (iii) مکمل دستبرداری۔ لہذا اس طرح کے مواد کو عام معلومات سے زیادہ کے طور پر فراہم کیا جاتا ہے۔ خاص طور پر، براہ کرم آگاہ رہیں کہ ہماری آن لائن تجارت کی سہولت کے مندرجات نہ تو کوئی درخواست ہے، اور نہ ہی فنانشل مارکیٹ میں کوئی لین دین داخل کرنے کی پیش کش ہے۔ کسی بھی فنانشل مارکیٹ میں تجارت میں آپ کے سرمائے کے لئے ایک خاص سطح کا خطرہ ہوتا ہے۔
ہماری آن لائن تجارتی سہولت پر شائع ہونے والے تمام مٹیریل کا مقصد صرف تعلیمی/معلوماتی مقاصد کے لئے ہے، اور اس میں شامل نہیں ہے — اور نہ ہی اسے فنانشل، سرمایہ کاری ٹیکس یا تجارتی مشورے اور سفارشات؛ یا ہماری تجارتی قیمتوں کا ریکارڈ؛ یا کسی بھی فنانشل انسٹرومنٹ میں لین دین کی پیشکش؛ یا اسکے لئے مانگ؛ یا غیر متنازعہ مالی تشہیرات پر مشتمل سمجھا جانا چاہئے۔
کوئی تھرڈ پارٹی کانٹینٹ، نیز XM کے ذریعہ تیار کردہ کانٹینٹ، جیسے: راۓ، خبریں، تحقیق، تجزیہ، قیمتیں اور دیگر معلومات یا اس ویب سائٹ پر مشتمل تھرڈ پارٹی کے سائٹس کے لنکس کو "جیسے ہے" کی بنیاد پر فراہم کیا جاتا ہے، عام مارکیٹ کی تفسیر کے طور پر، اور سرمایہ کاری کے مشورے کو تشکیل نہ دیں۔ اس حد تک کہ کسی بھی کانٹینٹ کو سرمایہ کاری کی تحقیقات کے طور پر سمجھا جاتا ہے، آپ کو نوٹ کرنا اور قبول کرنا ہوگا کہ یہ کانٹینٹ سرمایہ کاری کی تحقیق کی آزادی کو فروغ دینے کے لئے ڈیزائن کردہ قانونی تقاضوں کے مطابق نہیں ہے اور تیار نہیں کیا گیا ہے، اسی طرح، اس پر غور کیا جائے گا بطور متعلقہ قوانین اور ضوابط کے تحت مارکیٹنگ مواصلات۔ براہ کرم یقینی بنائیں کہ آپ غیر آزاد سرمایہ کاری سے متعلق ہماری اطلاع کو پڑھ اور سمجھ چکے ہیں۔ مذکورہ بالا معلومات کے بارے میں تحقیق اور رسک وارننگ ، جس تک رسائی یہاں حاصل کی جا سکتی ہے۔
