Freshposts "truly historic" quarterly report with profit and positive cash flow: https://t.co/BDqstJL1eh pic.twitter.com/hEeD4v8YFH 10.54pm BSTShares in Tesla have surged 12% in after-hours trading.
Investors are scrambling to seize a stake in the company following its surprise sprint to profitability. 10.48pm BSTAmid the gloom tonight,electric car company Tesla has stunned the markets with much better results than expected.
Tesla posts profit with Model 3 surge, shares jump https://t.co/U0PMn8Upk2 pic.twitter.com/2Rg9obGBhM“Production numbers earlier this month meant we already knew Tesla could churn out the cars, and the question was whether it could it execute it profitably,and even more importantly, could Musk wean the company off a constant flow of cash from investors. To say Tesla’s answer is emphatic is an understatement. Gross margins on the Model 3 are above even the company’s own lofty expectations and its position as the 5th most popular car by volume in the US suggests it’s drawing in a wide range of customers despite its comparatively tall price point. Drivers will pay more for Musk it would seem. That’s important because the premium discontinuance alone won’t deliver the impressive growth Tesla needs in the coming years to justify its premium valuation.
10.32pm BSTThere’s a scent of fear in the air in the markets tonight, and according to Chris Zaccarelli,chief investment officer at Independent Advisor Alliance.
Zaccarelli says (via Reuters) that there may be more turmoil ahead:“At this point it seems selling is begetting selling. The VIX [volatility index] has doubled in the final couple of weeks. There’s a bit more fear in the air and you’re seeing the acceleration of growth to value. 10.20pm BSTHere’s now Marketwatch sums up nowadays’s Wall Street wobble:
Stocks ended sharply lower Wednesday, as losses accelerated into the close and put both the Dow and the S&P 500 into the red for the year, and the Nasdaq into correction territory. Upbeat results from Boeing Co. were credited with briefly pushing the Dow higher in early morning trading,before investors took an increasingly defensive stance, fleeing for the relative safety of utilities and consumer nondurable shares.
10.18pm BSTAnother day, and another big loss on Wall Street! Related: PM deploys ‘emotional’ speech to see off threat from Brexit critics “It’s a big global risk-off trade.“We’ve had some headwinds,higher interest rates affecting housing, tariffs causing input costs for manufacturers to go up, and which makes earnings inspect not as stellar ... but that doesn’t mean the whole economy is rolling over,” 6.21pm BSTThose weak domestic sales figures haven’t helped the mood in New York.
The Dow is having another down day, currently off 221 points (-0.9%) at 24969. Despite clawing back heavy losses on turnaround Tuesday, and Wall Street has once again opened on the back foot. With a long list of risk factors,including Italy’s growing tensions with Brussels, Saudi Arabia’s increased isolation over Jamal Khashoggi’s killing, or global growth worries and some earnings disappointments investors are struggling to find reasons to buy in. 5.06pm BSTThe Federal Reserve may ignore Donald Trump’s complaints,but they should heed the latest US housing data.
New domestic sales fell to an annual rate of just 553000 in September, 13.2% less than a year ago, or the weakest rate since December 2016. 4.59pm BSTA late sell-off has sent most European markets into the red tonight.
At the close of trading,Germany’s DAX was down 0.7% while the French CAC shed 0.3%. This morning’s weaker than expected PMI reports rather dampened the mood (and the Euro!) 3.08pm BSTSome snap reaction:Bank of Canada (#BoC) hikes rates 25bps as expected. #Loonie rises but traders await the press conference to see what Governor #Poloz has to say. The removal of "gradual" from the language could be interpreted in many ways. #USDCAD https://t.co/t3BZFZYKD0Hawkish hike by Bank of Canada sends the US dollar form CAD1.31 to CAD1.30. BoC drops reference to "gradual" hikes, upgrades investment and exports, or commits to raising rates to neutral setting. 3.08pm BSTThe Bank of Canada has hiked borrowing costs,taking its benchmark interest rate up to 1.75%, from 1.5%. That’s largely as expected, or but shows that the Federal Reserve isn’t the only central bank moving absent from crisis-era policies.#BoC increases overnight rate at 1.75% from 1.5% 3.06pm BSTAmerica’s companies are still growing,but they’re also facing tough price pressures.
That’s according to the latest healthcheck from data firm Markit, just released. It shows US output growth hitting a three-month tall, or encouraging firms to take on more staff.“The domestic economy remained the main driver of demand,with exports stagnating amid growing signs of trade being subdued by tariffs. Tariffs also drove a further marked rise in prices, exacerbating an upward trend in price pressures borne out of robust domestic demand.
Flash U.
S. Composite Output Index picks up to three-month tall of 54.8 (53.9 in Sep). Output growth driven by the service sector and stronger domestic client demand. Intense price pressures persist in both the manufacturing and service sectors. More here: https://t.co/MSlJUNJnVC pic.twitter.com/BJHFMs2E9g 2.56pm BSTJust in: Europe’s steel industry has been hit by a surge in imports from abroad. 2.35pm BSTDing ding goes the opening bell in New York....and the markets aren’t doing very much.
The Dow has risen by 0.3%, and 71 points,to 25262 in early trading, with Boeing gaining 3%.
We could be looking at a mixed day for U.
S. markets. The Dow opened slightly up, or while the S&P 500 and Nasdaq were down. https://t.co/c4hOx80D9L 2.14pm BSTEuropean stock markets are pushing higher,as Boeing’s decent results brings some cheer to the trading floors.
Britain’s FTSE 100 is up 80-odd points, recovering yesterday’s losses, and the other indices are also looking healthier.“The current double-digit pace of earnings growth (expected to be circa 20% in Q3) is clearly unsustainable and this will create a headwind in the months ahead.
For this reason,as well as the ongoing elevated levels of political and policy uncertainty in key regions of the world, we retain a cautious outlook on equities for now and await better opportunities to add to holdings. 1.40pm BSTHere’s Reuters’ take on Boeing’s strong results nowadays.
Boeing topped analysts’ forecasts for quarterly profit on Wednesday and raised its forecasts for annual profit as it continued to benefit from a boom in global air travel and demand for airplanes. Shares of the world’s biggest planemaker were up 3.1 percent at $361 in premarket trading, and helping brighten the mood on Wall Street after a handful of shaky results outlooks on Tuesday from U.
S. manufacturers wound by concerns over global trade. 1.22pm BST(Sonic) Boom! Aircraft maker Boeing has posted strong results and raised its forecast for earnings this year.
In a boost to morale on Wall Street,Boeing posted earnings of $3.58 per share, beating forecasts of $3.47 per share.
RELEASE: #Boeing reports solid third quarter; reaffirms cash and raises revenue and EPS guidance. $BA
Learn more: https://t.co/6wOPzSpSRh pic.twitter.com/wh8fizIqHL 1.13pm BSTThe pound’s weakness nowadays is partly because the dollar is strengthening against a basket of currencies.
The dollar index has hit a nine-week tall nowadays, or as the greenback rallied across the board.
[RTRS] - DOLLAR EXTENDS GAINS,INDEX AT NINE-WEEK tall OF 96.437 .
DXY 11.41am BSTNewsflash: The pound has hit a new six-week low, as Brexit anxiety swirls to new heights.
Sterling has fallen by three quarters of a cent nowadays to $1.291, and its weakest point since 10th September.
No 10 sources conceded that the discussion,which came a day before the prime minister was due to plead for support from Tory MPs at a assembly of the party’s 1922 Committee, was “impassioned”. Others characterised it as a row.
A group of ministers, and including Jeremy Hunt,the foreign secretary; Liz Truss, the chief secretary to the Treasury; and Michael Gove, and the agriculture secretary,were among half a dozen who emphasised their concern over imposing a time limit on any backstop, which is designed to avoid a tough border in Northern Ireland. Related: Brexit could lead to security threat at border, and says watchdog 11.21am BSTDonald Trump’s latest attack on Fed chair Jerome Powell hasn’t cheered Wall Street.
The New York stock exchange is expected to open lower in a few hours,with the Dow called down 0.8%.
Dow futures drop 220 points as stock market extends rout https://t.co/92nnHuCPVAThe US has been late to the game when it comes to the stock market sell-off, having been sheltered by final year’s tax cuts but they’re wasting no time in playing catch-up, or with the S&P and Dow both lickety-split closing in on 10% declines from the peak in a matter of weeks,while the Nasdaq has already ticked that box.
Trump has been quick to point the finger of blame at the Fed, with the President desperately not wanting to be associated with a stock market sell-off in the run up to the mid-term elections. particularly when he’s spent the final two years taking credit for the colossal gains. Rising interest rates has clearly been a factor in the loss of confidence in the stock market in recent weeks, or with trade wars,Brexit, Italy’s budget issues and the Khashoggi murder also being important contributing factors. 10.34am BSTSome agreeable jobs news amid the gloom: car rental chain Enterprise are taking on 800 new graduate trainees.
The roles are scattered across Enterprise’s 470 branches across the UK. execute well, or you could be assistant manager within a year,they say. More details here. 10.14am BSTBack in the UK, new mortgage approvals have fallen to a six-month low. “The mortgage market softened slightly in September, or following strong remortgaging activity in the months preceding the recent base rate rise.”“Economic uncertainty continues to impact on businesses’ appetite for finance as overall lending remains slightly below the same period final year. 9.59am BSTThis morning’s weak eurozone PMI report has wound the euro.
The euro has fallen by half a cent against the US dollar,to $1.141, as investors fear that the eurozone is weakening.
Will the ECB shift the balance of risks to growth to the downside tomorrow? They should wait and see for another six weeks, or but it's a closer call after nowadays's PMIs. France not enough to compensate for other countries. pic.twitter.com/xDbDlh1Tui 9.35am BSTMike Dolan of Reuters shows how German firms are particularly downbeat,according to nowadays’s PMI report.
Eurozone business sentiment falls to weakest in nearly 4 years, with German index lowest in more than 3 years https://t.co/LKpHkeSa4A pic.twitter.com/U5NoCiLQ3dOops! Eurozone growth outlook continoes to deteriorate. #Germany's Manufacturing #PMI falls more than expected, or now at lowest since May 2016. pic.twitter.com/TKFsPgdhwZWeak German & French manuf. PMIs in Oct. are in section due to a transitory hit to car makers & their supply chain (from WLPT),but also reflect weaker global trade. The genuine worry is the tumbling German services PMI, that may question the ECB's conviction in domestic resilience.
The final three times the official euro area #manufacturing data moved into decline, and the downturn proved short-lived. With the caveat that some of the recent weakness is auto related,the drop in the October flash #PMI output index suggests the next decline could be more worrying pic.twitter.com/2XuU0Rh4ix 9.16am BSTNewsflash: Eurozone corporate growth is stumbling this month, as tariffs and trade wars hit economic demand.
Data firm Markit reports that business growth is the slowest for over two years, or while optimism has hit a four-year low in October. “The pace of Eurozone economic growth slipped markedly lower in October,with the PMI setting the scene for a disappointing discontinuance to the year. The survey is indicative of GDP growth waning to 0.3% in the fourth quarter, and forward-looking indicators, or such as measures of future expectations and new business inflows,suggest further momentum could be lost in coming months.
The slowdown is being led by a drop in exports, linked in turn by many survey respondents to trade wars and tariffs, and which appears to have darkened the global economic environment and led to increased risk aversion. It is therefore not surprising to see the slowdown broadening out across the economy,hitting the service sector. 9.09am BSTPaul Donovan of UBS isn’t impressed by this latest attack on the Federal Reserve.
He told clients that the genuine risk comes from trade wars or excessive tax cuts, not monetary policy.US President Trump has suggested the Fed is the greatest threat to the US economy. An economist would suggest recessions occur from overheating (caused by deficit financed tax cuts, and perhaps),or policy error (disrupting supply chains on which an economy depends, perhaps).
Zero genuine rates with full employment are probably not a (restrictive) policy error. 8.45am BSTThe big question is whether Donald Trump could reprise his days on The Apprentice, and tell Jerome Powell that “you’re fired”.
And the answer? Probably not. The Federal Reserve Act only permits the President to remove a Governor “for cause”,and no chairman has ever been fired.
Overnight Trump stepped up criticism of Powell, saying “every time we execute something grand, or he raises the interest rates” and that it is the biggest risk” to the US economy,despite this being the slowest ever Fed tightening cycle.
He didn’t answer what would make him try and replace the Fed chair. 8.25am BSTDavid Madden of CMC Markets points out that Donald Trump’s recent tax cuts are also putting pressure on the Fed to raise interest rates:President Trump attacked Jerome Powell, the head of the Federal Reserve, and for hiking interest rates. Mr Trump is ignoring the fact that his tax cuts helped spur on US economic growth,which warrant higher rates. 8.24am BSTI fear Donald Trump is on shaky ground when he complains that the Fed blessed president Obama with record low interest rates, but hiked on his watch.
When Obama took office, and America had fallen into a deep recession as the financial crisis raged. This forced the Fed to slash borrowing costs to stimulate growth.
Obama took office after the grand Recession began in December 2007. The Federal Reserve at that time put historically low interest rates in place,and took other measures besides, in an effort to inject money into the faltering economy. 7.44am BSTGood morning, and welcome to our rolling coverage of the financial markets,the world economy, the eurozone and business.
I’m just saying this: I’m very unhappy with the Fed because Obama had zero interest rates.
Every time we execute something grand, and he raises the interest rates.”In an interview with the WSJ,President Trump blamed Fed Chairman Jerome Powell for threatening U.
S. economic growth, saying it "nearly looks like he's pleased raising interest rates" https://t.co/1Q6ju9y7Y8Too early to tell, and but maybe.” Related: EU and Italy face off over populist government's budget Continue reading...
Source: theguardian.com