Beat the street: Tesla shares; IBM shares; US data points to a resilient economy
US investors digest a slew of data indicating a resilient US economy. Tesla, all-sessions, indicated lower after Musk warns of slow sales growth. IBM, all-sessions, in focus after its forecasts.
Plus, Disney's India unit valuation has halved in Ambani merger talks, reports Bloomberg.
(AI Video Summary)
S&P 500 to reach another all-time high
In today's edition of "Beat the street," the host Angeline Ong shares important news about trading before the Wall Street Market opens. She talks about the S&P 500, which is about to reach another all-time high. She also mentions that Intel and Visa will be releasing earnings reports soon. However, Tesla's shares are expected to go down because Elon Musk warned about slow sales growth. On the other hand, IBM's shares are expected to rise because their revenue and forecasts are strong.
ECB keeps interest rates unchanged
Next, she discusses the European Central Bank's decision to keep interest rates unchanged. This decision, along with disappointing data and forecasts from Germany, might have a negative impact on the eurozone economy. But the US data shows that the economy is still doing well, which supports the idea of a soft landing. Ong thinks that the Federal Reserve is also on track for a soft landing, but there might be some market volatility because of the record highs.
Market analysis with Axel Rudolph
An IG analyst named Axel Rudolph talks about the Dow Jones, which has been consolidating after reaching a new high. He believes it will retest the high and as long as it stays above a certain support level, the uptrend will continue. The S&P 500 is also discussed because it recently closed at another record high with high trading volumes.
Earnings reports
Then, Ong talks about Tesla's earnings report, which fell short of expectations. This leads to a decrease in Tesla's shares. IBM, on the other hand, exceeded earnings forecasts and expects revenue growth, yet its shares are still down. Disney's India unit received a lower valuation than expected in a merger with an Indian media empire, showing the challenges faced by global media giants in India.
Finally, she mentions three more companies, Intel, Visa, and American Airlines, that will be reporting earnings soon. American Airlines is expected to make a profit higher than expected, which leads to an increase in its shares.
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