- US indices launched today's cash trading higher
- US GDP expands more than expected in Q4 2022
- Tesla (TSLA.US) surges on upbeat quarterly results
Three major Wall Street indices launched today's session in green, with Dow Jones trading 0.30% higher, while S&P500 and Nasdaq rose 0.70% and 1.30% after latest GDP data showed the US economy expanded 2.9% in the final quarter of 2022, while markets expected a 2.6% advance. Still, more frequent data and mixed corporate earnings suggest that the broader economy is facing headwinds. Meanwhile, easing PCE inflation bolstered bets that the Fed would further slow down its rate hikes, with money markets now pricing an over 95% chance of a 25 basis point increase at the next policy meeting. Also upbeat earnings from Tesla lifted market sentiment. Investors now await another batch of updates from corporate America, with Intel and Visa among the most prominent companies to report after market close.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
US30 climbed above major resistance at 33720 pts, which coincides with 61.8% Fibonacci retracement of the downward wave launched in January 2022 and 50 SMA (green line). If current sentiment prevails, an upward move may accelerate towards local resistance at 34330 pts, which is marked with previous price reactions. Source: xStation5
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The 1-Month Treasury Bill recently jumped to 4.69%, which is the highest 1-month yield since August 2007, amid slowing inflation. This also shows that the market is now expecting the Fed to hike only 25 bps next week. Source: Ycharts
Company news:
Tesla (TSLA.US) stock jumped over 10.0% in premarket after the EV maker posted record revenue and better than expected quarterly earnings. CEO Elon Musk said Tesla might be able to produce 2 million cars this year.
Tesla (TSLA.US) stock broke above the upward trendline at the beginning of the week and fresh quarterly results provide more fuel for the bulls. Stock launched today's session with a bearish price gap and is moving towards major resistance at $174.50, which coincides with 61.8% Fibonacci retracement of the upward impulse started at the beginning of the pandemic. Source: xStation5
IBM (IBM.US) stock plunged over 2.0% before the opening bell despite the fact that the company posted upbeat quarterly figures and plans to lay off 3,900 workers.
Southwest (LUV.US) stock fell nearly 3.0% in premarket after the airline posted $220 million loss in Q4 2022 as flight disruptions during the Christmas drove up expenses.
Las Vegas Sands (LVS.US) shares surged over 4.0% in off-hours trading even though the hotel and casino operator reported disappointing quarterly figures results. However analysts point to reopening in Macao which should have a positive impact on the company's future performance.
Levi Strauss (LEVI.US) skyrocketed more than 7.0% in premarket following a better-than-expected quarterly report. Denim maker beat market earnings projections by 5 cents a share.
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