The electric car giant will be reviewed by shareholders following weak quarterly data on Wednesday.
Photo: Seth Wenig/AP/NTBPublished:
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Here’s what it looks like with key indices just before 4pm Norwegian time:
- The S&P 500 collective index rose by 0.41%.
- The Nasdaq technology index rises by 0.37%.
- The Dow Jones index rises by 0.34%.
Since Friday, the S&P 500 has closed each day at record levels. The collective index closed at 4,868.55 points on Wednesday.
A barrel of North Sea oil is currently trading at $81.44 per barrel. Since midnight there has been an increase of 1.90 percent.
Tesla disappointment
On Tuesday evening, Tesla presented its quarterly data for the 4th quarter of 2023. The data was lower than expected.
Tesla’s earnings per share fell short of expectations in the 4th quarter at 71 cents, which was lower than Bloomberg economists expected. The consensus was for 73 cents a share.
- In the fourth quarter the company recorded revenue of $25.2 billion, which corresponds to 264 billion crowns. The numbers are also lower than expected.
- At the same time, there is an increase of 3% compared to the 4th quarter of 2022.
- Net profit amounted to $7.9 billion in the final quarter of 2023, up sharply from $3.7 billion in the same period of 2022.
Tesla delivered 484,507 cars in the fourth quarter of last year. The sharp price reductions have contributed to pushing sales figures to record levels, writes the American CNBC.
The price reduction is also the result of increased competition from other companies, including China’s BYD.
For the full year, Tesla increased the number of cars delivered by 38% in 2023, to a total of 1.85 million. At the same time, Tesla yesterday warned the market that volume will decline in 2024.
The stock was immediately lowered in aftermarket trading Wednesday.
Today, just over half an hour after the start of ordinary trading, the stock collapsed by 8.94%.
The flight continues
Airline stocks on Wall Street made a solid recovery on Tuesday, following quarterly data released by United Airlines after hours on Monday evening. There they revised their outlook downwards in the 1st quarter due to problems with the Boeing 737 Max-9 aircraft.
US aviation authorities have grounded planes after a fuselage panel fell during the flight of an eight-week-old Alaska Airlines 737-Max plane just after the New Year.
It was the first indication of the economic consequences of the refusal of the flight by the American aviation authorities. United Airlines has 79 aircraft of this model in its fleet.
Alaska Air Group said Thursday it expects to lose up to $150 million due to the model grounding.
Here’s how airline stocks have performed on Wall Street so far Thursday:
- United’s share rises by 4.21%.
- American Airlines rises 7.14%.
- Delta rises by 3.74%.
- Alaska Airgroup rises 3.93%.
- Southwest Airlines rises 1.48%.
Photo: NTSB/Reuters/NTB
Strong figures are published by IBM
International Business Machines Corporation (IBM) also presented new quarterly data. Investors welcomed the IT giant’s figures, which exceeded analysts’ expectations.
The stock rose 10.26% just half an hour after opening.
Stronger growth than expected
The U.S. economy grew 3.3% in the fourth quarter.
According to consensus estimates collected by Bloomberg, growth of 2% was anticipated in advance.
Personal spending is the main driver of gross domestic product. According to Bloomberg, growth was 2.8%.
For all of 2023, the U.S. economy grew 2.5%.
The latest data shows that consumption in the United States has held up well, despite interest rate increases and persistent inflation.
Since July, interest rates in the United States have remained unchanged in the range of 5.25-5.50%, the highest level in 22 years.
At the December rate meeting, the Fed signaled three interest rate cuts in 2024. This helped create great optimism in the market in the days before Christmas, with high expectations of interest rate cuts as early as March.
2024-01-25 14:30:42
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