Traders on the floor of the NYSE, April 19, 2023.
Source: NYSE
Here are the most important news items that investors need to start their trading day:
1. More muddling
The three major U.S. stock indices are coming off another mixed day. The S&P 500 finished Wednesday slightly lower, while the Nasdaq finished slightly higher. The Dow finished in the red. The recent market muddle reflects a mixed beginning to earnings season. While big banks have come through pretty well, other companies have posted middling results. There are tons more earnings to come over the next few weeks, too, as investors also prepare for more signs of a slowdown in the economy. Follow live market updates.
2. ‘Stormy weather’
Elon Musk speaking at Tesla Investor Day.
Courtesy: Tesla
Tesla’s quarterly results came in just about in line with what Wall Street was expecting. Automotive revenue jumped 18% year-over-year, but earnings felt the crunch, falling more than 20%. The company blamed a number of factors for deteriorating profit margins: higher material and logistics costs, lower revenue from environmental credits and “underutilization of new factories.” Tesla CEO Elon Musk also offered a gloomy outlook for the economy, saying he sees “stormy weather” ahead. “Every time that the Fed raises interest rates, that’s the equivalent to an increase in the price of a car,” he said. Shares of Tesla fell about 7% in premarket trading.
3. IBM’s mixed report
Not bad, IBM. Not great, either, but not bad. After the bell Wednesday, the legacy tech giant reported better earnings than expected, while coming up just shy on revenue. The solid performance on the bottom line reflects recent spending reductions IBM made in its research, development and engineering operations. And the company might not be done cutting, either. “We continue to evaluate additional actions,” Chief Financial Officer Jim Kavanaugh told analysts during an earnings call. IBM shares popped around 4% at first, but were about 2% higher during…
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