Market Watch:- Dow futures contract increased by 50 points, S&P 500 futures rose by 6 points, and Nasdaq 100 futures rose by 25 points.
Tesla and General Motors are set to start earnings season, with a positive Wall Street open and a substantial global EV market growth expected this year.
Tesla Earnings
Tesla, the first Big Tech stock to report, is expected to report its first revenue drop and lowest gross margin in nearly four years. The company has reported an 8.5% decline in deliveries and rising inventories, and recently announced price cuts and layoffs. Investors will also be looking for news on the company’s latest model, the Cybertruck, and whether Tesla maintains its goal of producing 200,000 vehicles in 2025.
General Motors (GM) earnings
General Motors (GM) is set to report its first-quarter earnings, with solid results expected due to higher vehicle pricing. The auto giant is expected to boost sales of its core gasoline-powered vehicles, including the profitable Chevrolet and GMC pickup trucks and SUVs. However, investors will also be interested in updates on GM’s EV plans, Cruise robotaxi unit, and stock buyback program.
EV market outlook for 2024
The International Energy Agency predicts that the electric vehicle (EV) market will grow strongly in 2024, with sales reaching 17 million, up from 14 million in 2023. Over one in five cars sold globally will be electric, with 10 million expected to be sold in China. Despite concerns about the industry’s pace, global sales data remain strong.
Economic Calendar
- 9:45 PMI Composite Flash
- 10:00 New Home Sales
- 10:00 Richmond Fed Mfg. Index
- 1:00 PM Results of $69B, 2-Year Note Auction
- 1:00 PM Money Supply
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MFitch Ratings has downgraded China’s credit rating outlook to “Negative” from “Stable” due to concerns over growing public debt and slowing growth in the world’s second-largest economy. The agency affirmed China’s rating at A+, citing increasing risks to China’s public finance outlook. Concerns over slowing economic growth have grown in recent months, with Fitch expecting gross domestic product growth to fall to 4.5% in 2024.
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U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.
U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.