On Tuesday, we saw US equities close in negative territory. The Dow, S&P 500, and NASDAQ all lost their earlier gains. There could be significant movements in these indices this week as key economic data is released.
Tesla (NASDAQ: TSLA) missed its Q4 delivery targets, causing TSLA shares to tumble over 12% yesterday, which continued after hours. Some analysts are also worried about margin pressure for the company in the future.
Apple (NASDAQ: AAPL) has also reportedly cut orders for several of its products due to weak demand, contributing to its stock decline. Overall, sentiment around both companies appears to be negative, with Tesla's stock having fallen around 65% in 2022.
Amazon (NASDAQ: AMZN) has announced that it has secured an $8bn unsecured loan from certain lenders.
Meanwhile, Google (Alphabet (NASDAQ: GOOGL)) and Facebook (META (NASDAQ: META)), the two biggest companies in online advertising, are no longer the main recipients of digital ad dollars in the US, according to a Wall Street Journal article.
Oil prices continue to decline on demand concerns and China’s COVID crisis.
In other energy news, a subsidiary of Tokyo Gas is reportedly in advanced negotiations to purchase Rockcliff Energy, a US natural gas producer, from private equity firm Quantum Energy Partners for around $4.6bn, including debt. If it goes through, this deal would be the latest instance of a Japanese company seeking to secure natural gas from sources perceived as reliable.
Economic data due to be released today includes ISM manufacturing, also known as the purchasing managers' index (PMI), and the Job Openings and Labor Turnover Survey (JOLTS). FOMC minutes are also due.
Dig a little deeper into the market update:
Tesla shares tumble after company misses delivery target
UniFirst Corp (NYSE: UNF), Microbix Biosystems Inc (TSE: MBX), Resources Connection, Inc. (NASDAQ: RGP), and Simulations Plus Inc (NASDAQ: SLP) report earnings today. Check out this week’s earnings preview.
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