Earnings
Boeing
S&P futures (SPX) +0.5%, Nasdaq 100 futures (NDX:IND) +0.7% and Dow futures (INDU) +0.2%.
Tesla earnings ahead
Tesla will lead the list of big-name companies reporting quarterly results on Wednesday.
Musk’s electric vehicle (EV) company is likely to report a 21% increase in deliveries this year in its fourth-quarter earnings after trading. The guidance would be considerably behind Musk’s three-year-old long-term yearly objective of 50%, highlighting Tesla’s growing EV market competitiveness.
BYD (SZ:002594), backed by Warren Buffett, overtook Tesla as the world’s top-selling EV maker this year by capitalizing on demand for cheaper non-combustion cars. BYD won despite Tesla reducing costs to attract cost-sensitive carbuyers, especially in China, analysts said.
Given these circumstances, traders may want to know more about Tesla’s next-generation automobiles. According to Reuters, Tesla has informed suppliers that it plans to mass produce a new mass market EV in mid-2025.
AT&T (NYSE:T) and Abbott Laboratories (NYSE:ABT) report before the bell, while IBM (NYSE:IBM) reports after U.S. markets shut.
Netflix subscription growth exceeds expectations
Netflix shares rose in premarket U.S. trading on Wednesday after popular programming helped the streaming giant acquire more paying members than Wall Street predicted in the fourth quarter.
The company signed up 13.12 million users in the three months ended Dec. 31, a 71% increase from the year-ago period and well above analyst estimates of 8.9 million, as viewers tuned in for the series finale of “The Crown” and “Squid Game: The Challenge,” its reality TV spin-off.
Revenue rose 12% to $8.83 billion, exceeding expectations. Netflix promised “healthy double-digit” yearly top-line growth in a shareholder letter.
Netflix executives want to raise prices again this year and convert its ads section into a “sustained, healthy” revenue stream in “2025 and beyond.” Co-Chief Executive Gregory Peters told analysts that a recent password sharing crackdown could yield lasting benefits.
Trump wins New Hampshire
After winning a crucial New Hampshire primary on Tuesday, Donald Trump’s bid for the Republican presidential nomination gained momentum.
According to the Associated Press, Trump led Nikki Haley 54.6% to 43.1% with 91% of the vote. The AP tabbed Trump.
Trump’s victory gives the former president an iron grip on the GOP nomination, despite Haley’s pledge. This month, he became the first Republican to sweep both major nominating contests since 1976 after a record-setting Iowa win.
President Joe Biden believes the New Hampshire vote almost guaranteed a 2020 rematch with Trump. Biden stated that “the stakes could not be higher.”
Economic Calendar
7:00 AM ET MBA Mortgage Applications Data
9:45 AM ET S&P Global manufacturing PMI, Jan-Flash
9:45 AM ET S&P Global Services PMI, Jan-Flash
1:00 PM ET US Treasury to sell $58B in 5-year notes.
10:30 AM ET Weekly DOE Inventory Data
Other Key Events:
Barclay’s Global Macro & Inflation Conference, 1/22-1/24, in Miami, FL
JP Morgan 2nd Annual Hyper Growth Private Technology Conference 1/24-1/25, in San Francisco, CA
TD Cowen Annual Global Mining Conference, 1/23-1/25, in Toronto, CA
Must read book about investing– check here
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2023 Chinese growth exceeds objective, but difficulties persist
China’s economy grew slightly less than predicted in the fourth quarter due to sluggish spending and a property market slump, but it narrowly beat government expectations for 2023.
Gross domestic product rose 5.2% year-over-year in the three months to Dec. 31, the National Bureau of Statistics reported Wednesday. The reading was weaker than 5.3% predictions but up from 4.9% the quarter before.
This raised 2023 growth to 5.2%, above Beijing’s 5% target. Despite COVID-19 limits, activity increased from 3% in 2022 due to a lower base for comparison. Except for the three pandemic-era closures, it was the lowest yearly expansion rate since 1990.
Last year, the Chinese economy was hampered by falling consumer spending, a housing market crash, and deflation. The world’s second-largest economy has demographic concerns, as shown by new data showing a faster population fall in 2023.
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2023 Chinese growth exceeds objective, but difficulties persist
China’s economy grew slightly less than predicted in the fourth quarter due to sluggish spending and a property market slump, but it narrowly beat government expectations for 2023.
Gross domestic product rose 5.2% year-over-year in the three months to Dec. 31, the National Bureau of Statistics reported Wednesday. The reading was weaker than 5.3% predictions but up from 4.9% the quarter before.
This raised 2023 growth to 5.2%, above Beijing’s 5% target. Despite COVID-19 limits, activity increased from 3% in 2022 due to a lower base for comparison. Except for the three pandemic-era closures, it was the lowest yearly expansion rate since 1990.
Last year, the Chinese economy was hampered by falling consumer spending, a housing market crash, and deflation. The world’s second-largest economy has demographic concerns, as shown by new data showing a faster population fall in 2023.
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