Tesla shares rise on strategy shift
Tesla shares jumped on Tuesday evening after announcing new plans for new and more affordable vehicles. Investors applauded the decision to use existing factories to put in place this new strategy.
The equity markets
The equity rally continued overnight as Asia–Pacific (APAC) equity markets followed the US index lead.
The Australian dollar
The AUD was up for a third straight day, supported by the latest Australian inflation data. The trimmed mean consumer price index (CPI), the measure preferred by the Reserve Bank of Australia (RBA), rose 1% in Q1 quarter-over-quarter (QoQ), compared to market estimates of a 0.8% increase. Markets have abandoned hopes for any RBA rate cuts this year.
The German Ifo
At 9 a.m., the German Ifo business climate is expected to rise to 88.9 in April. Last month, the index came in at 87.8.
Lloyds Banking Group
Lloyds Banking Group's underlying net interest income fell 10% to £3.2 billion. Operating costs of £2.4 billion, up 11 percent.
Kering
Kering issued another profit. It now expects a decline of between 40 and 45% in its first half operating income compared with 2023. Its first-quarter sales dropped 10% on a like-for-like basis to €4.5bn.
Roche
Roche sales fell 6% in Q1 to 14.4 billion Swiss francs. It reiterates its 2024 guidance of an increase in sales and adjusted earnings per share in the "mid single-digit" percentage range.
Tesla
Tesla shares jumped on Tuesday evening after announcing new plans for new and more affordable vehicles. Investors applauded the decision to use existing factories to put in place this new strategy. This means that investments in new production plants in Mexico and India now look unlikely. Tesla earnings came in at 45 cents per share, four cents lower than analysts' expectations. Revenue also missed forecasts by nearly $1 billion.
Visa
Visa beat analysts forecasts for both lines in the past quarter. Earnings came in at $2.51 per share on revenue of $8.78 billion. The street had anticipated EPS at $2.44 and revenue at $8.62 billion. Visa's payment volume climbed 8% in the second quarter. Cross-border volume, excluding intra-Europe, a gauge of international travel demand, jumped 16%.
Meta
Meta is due to report tonight after the US closing bell. The street anticipates earnings of $4.32 per share on revenue of $36.14 billion. Investors will keep a close eye on ad growth, which is essential to Meta. In Q4, digital ad sales accounted for 97% of the group's revenue. For this quarter, analysts project advertising sales growth of 26% to $35.4 billion, or 98% of total sales.
Meta's investiment in AI
Ad sales are crucial if Meta wants to continue to heavily invest in AI. In February, the group raised the high end of its 2024 capital expenditures guidance to between $30 billion and $37 billion. Also expected today are earnings from Boeing, AT&T, IBM, and Ford Motor.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
