June 10, 2023


Complete News World

Tech Falls on Wall Street – Tesla tumbled after the numbers were released

Electric car giant Tesla fell sharply from the get-go after the company provided first-quarter numbers on Wednesday after US stock exchanges closed.

Investors reacted as the stock fell 9.7 percent on Thursday, trading at $162.9 — a sharp drop from its peak of $407 a share in November 2021.

The big question for investors was what the company’s margins looked like in the first quarter, and whether it would give a boost to US stock markets. It turns out that margins have nearly halved in one year, and net income is down more than 20 percent.

Its cost is prohibitive for one of the most valuable companies in the world, which in the course of a trading day has lost more than $50 billion in market value. At the end of the trading session, the market value reached $510 billion.

broad fall

The three main indicators looked like this at 22:00 Norwegian time:

  • The Nasdaq Technology Index fell 0.8 percent
  • The Dow Jones Industrial Average fell 0.3 percent
  • The broad S & P 500 index fell 0.5 percent

The 10-year yield also fell on Thursday and was at 3.5 percent at the time of writing. The two-year government interest rate is about 4.1 percent at the close of the exchange.

In the morning, investors received new numbers on unemployment claims in the United States. The number of first-time applicants for unemployment benefits in the United States (unemployment claims) ended at 245,000 people last week, according to statistics from the US Department of Labor.

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In advance, the number of first-time applicants was expected to be 240,000, according to consensus forecasts from Trading Economics. The weekly number for first-time claimants’ benefit influences financial markets in large part because it measures new and emerging unemployment.

Earnings season is underway on Wall Street. Next week, the stage is set for new numbers from, among others, Microsoft and Alphabet owner Google and Facebook.

Banks are closing in

The Fed’s “beige book” expresses that many banks have tightened lending practices, but there are little changes in the level of activity itself after the survey was submitted on Wednesday night, economists at Handelsbanken write in their morning report.

– Fed’s Williams also spoke last night, and noted that the situation in the banking sector now seems to have stabilized – as we have clear indications – but credit conditions have tightened anyway, he says.(conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For more terms see here.