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HomeNewsGlobal NewsMarket Watch: Tesla's Growth, Taiwan Earthquake, and Intel's Losses Drive Investor Uncertainty.

Market Watch: Tesla’s Growth, Taiwan Earthquake, and Intel’s Losses Drive Investor Uncertainty.

Market Watch:- Dow futures declined 25 points, S&P 500 futures 5 points, and Nasdaq 100 futures 34 points, or 0.2%.

Wall Street is expected to trade lower on Tuesday due to reduced rate cuts in the first half of the year, Rubrik plans an IPO, and UBS announces a new share buyback program.

Tesla delveries

Tesla’s first-quarter vehicle production and deliveries report showed a 8.5% drop in deliveries and a 20% decline in deliveries from the fourth quarter, marking the first year-over-year decline since the second quarter of 2020. Tesla stock fell 5%, with analysts predicting a seminal moment for Musk to reverse the performance or face potential disruptions.

Tesla’s shortfall is attributed to production issues with Model 3 Highland, but demand is the main issue. Analysts Bernstein and Wells Fargo remain skeptical about deliveries growing in 2024 or 2025.

Taiwan’s earthquake

Taiwan experienced a powerful 7.5 magnitude earthquake, killing four people and injuring dozens more. The disaster led to Taiwan Semiconductor Manufacturing (TSM) evacuations, potentially causing production delays.

TSMC supplies major companies like Apple, Nvidia, and Qualcomm with semiconductors, potentially acting as a choke point in the global supply chain. Shares of TSMC fell 1.4% in early trade. The earthquake’s impact on the global economy highlights Taiwan’s importance to China.

Intel dip

Intel’s stock fell sharply premarket after the company disclosed deepening operating losses for its semiconductor manufacturing business. The foundry unit had $7 billion in operating losses for 2023 on $18.9 billion sales, wider than the $5.2 billion in 2022 on $27.5 billion sales. Intel CEO Patrick Gelsinger expects the foundry to drive earnings growth over time, with 2024 being the trough for operating losses.

Economic Calendar

OPEC Meeting
7:00 MBA Mortgage Applications
8:15 ADP Jobs Report
9:45 Fed’s Bowman Speech
9:45 PMI Composite Final
10:00 ISM Service Index
10:30 EIA Petroleum Inventories
12:00 PM Fed’s Goolsbee Speech
12:10 PM Jerome Powell Speech
1:10 PM Fed’s Barr Speech
4:30 PM Fed’s Kugler Speech

Must read book about investing – check hereMarket WatchMarket WatchMarket WatchMarket Watch Market Watch Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting

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.

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