Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
U.S. stock futures are down this morning, following Tesla’s weaker-than-expected quarterly profit and concerns over recent bank stresses potentially leading to an economic slowdown. Tesla’s shares dropped by 7% in pre-market trading after reporting earnings below expectations. Elon Musk commented that the economic situation may continue to be difficult for a year, with Tesla reducing vehicle prices to boost demand. This move puts pressure on other automakers to cut prices, including Ford, General Motors, Rivian, and NIO, whose shares also fell by over 2%. IBM’s shares rose by roughly 1.5% after reporting better-than-expected earnings, while American Express saw its shares rise after exceeding revenue estimates.
Additionally, Brent crude oil futures dropped below $82 a barrel, weekly jobless claims were higher than expected, and existing home sales data is also expected later in the morning. In the news, Chicago Fed President Austan Goolsbee warns that recent bank stresses could cause a slowdown in the economy if banks reduce credit to businesses and consumers. Goolsbee urges caution and monitoring of credit conditions to assess how much the banks are performing the Fed’s monetary policy job, and notes that while the job market is strong, inflation remains a persistent issue.
Thursday Economic Events:
Initial Jobless Claims 8:30am ET
Philly Fed Mfg Index 8:30am ET – High Volatility Expected
Existing Home Sales 10:00am ET – High Volatility Expected
Leading Indicators 10:00am ET
EIA Natural Gas Report 10:30am ET
Fed Speaker Scheduled:
Christopher Waller 8:45am ET
Loretta Mester 12:20pm ET
Bowman and Logan 3:00pm ET
Raphael Bostic 5:00pm ET
Patrick Harker 7:45pm ET
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