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Market Moves Yesterday
S&P 500 @ 5116.17 (⬆️ 0.32%)
Nasdaq Composite @ 15,983.08 ( ⬆️ 0.35%)
Bitcoin @ $62,750.20 ( ⬇️ 1.7%)
Hey Scoopers,
Happy Tuesday! Here’s what is moving the markets:
👉 Tesla stock gains over 15%
👉 Oil prices are down
👉 BTC outflows surged past $400 million last week
So, let’s go 🚀
Market Wrap 📉
Stocks closed higher on Monday as traders gear up for another week dominated by corporate earnings and the upcoming Federal Reserve meeting.
Several heavyweights, such as Apple, Amazon, McDonald’s, Coca-Cola, and Starbucks, will report their quarterly results this week.
According to FactSet data, 46% of the S&P 500-listed firms have posted results until now, of which 80% have surpassed estimates.
Despite the earnings beat by several companies, major indices are on track to end April 2024 in the red. The Dow Jones index is down 3.5% this month, while the S&P 500 and Nasdaq Composite are down more than 2% each.
The Federal Reserve is set to release the latest interest rate announcement on Wednesday. Given sticky inflation, the Fed is widely anticipated to keep borrowing costs unchanged.
Trending Stocks 🔥
Domino’s Pizza - Shares of the pizza maker popped 5.5% after it reported revenue of $1.08 billion and earnings of $3.58 per share. While revenue numbers were in line with estimates, analysts forecast Q1 earnings at $3.39 per share.
SoFi - The fintech stock plunged over 10% as it forecast Q2 revenue between $555 million and $565 million with net income between $5 million and $10 million. Wall Street forecast Q2 sales at $580.8 million and net income at $13.9 million.
Paramount Global - The entertainment company saw its shares rise close to 3% after reports stated its board is preparing to fire CEO Bob Bakish. .
Tesla Stock Is On a Roll
Shares of Tesla rose over 15% yesterday after the company stated it is ready to launch its FSD (full self-driving) technology in China.
Tesla’s CEO, Elon Musk, visited China over the weekend and reportedly discussed the company’s data security measures with regulators. Soon after, China paved the way for its FSD software to enter the country.
Until now, data security concerns meant Tesla offered FSD tech with certain restrictions in China.
It's important to note that Tesla cars are not fully autonomous and are currently armed with “level 2” driver-assistant systems, which include features such as auto parking.
Basically, Tesla’s FSD is an upgrade over its Autopilot Software, which was launched in 2020.
Tesla also inked a deal with Baidu, which gives the car manufacturer access to the latter’s mapping and navigation technology for FSD. Further, Tesla can leverage Baidu’s mapping license and gather crucial information related to traffic, road signs, and routes in China.
Tesla stock is up over 30% since the company reported its Q1 results last week.
Oil Prices Fall Over 1%
Crude oil futures fell by $1 yesterday as the U.S. Secretary of State made a diplomatic push in the Middle East to secure a cease-fire in Gaza and head off an Israeli offensive against Rafah.
Source: CNBC
A cease-fire agreement, if successful, would ease the risk premium factored into oil prices on fears the war in Gaza could trigger a broader conflict in the Middle East, thereby disrupting crude supplies.
West Intermediate futures were down $1.15 or $1.37% at $82.70 a barrel. U.S. crude oil and the global benchmark have gained over 14% year-to-date.
Digital Asset Investment Products Are Volatile
According to a CoinShares report, crypto products saw investment outflows totaling $435 million last week. This was the third consecutive week of outflows for digital asset investment products.
Trading volumes for crypto products were down 34% at $11.8 billion, while inflows for Bitcoin ETFs stood at $126 million, lower than the $254 million in the prior week.
Bitcoin and Ethereum led the outflows, as the two largest cryptocurrencies experienced a cumulative sell-off of more than $450 million.
Headlines You Can't Miss!
Eurozone inflation remains steady at 2.4%
Higher interest rates pose a risk to emerging markets, warns IMF
Lower sales drag Volkswagen’s Q1 profits lower
Microsoft to invest $1.7 billion into AI infrastructure in Indonesia
Crypto ETFs begin trading in Hong Kong
Chart of The Day
Source: Quartr
Back in 1981, IBM sparked the personal computing revolution with the release of the IBM PC, which soon gained massive traction.
Microsoft was then assigned to develop the operating system under a non-exclusive deal instantly positioning it as a market leader in software.
In 1986, Microsoft went public with a market cap of $777 million, while IBM was the world’s largest company valued at $92.6 billion.
Today, Microsoft is the world’s largest company and is valued at more than $3 trillion, while IBM is worth “just” $167 billion, or 5% of MSFT’s market cap.
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.