Coffee With Greta: Stocks Build on Best Week Since June
DJIA Futures: +212 (+0.7%)
SPX Futures: +24 (+0.6%)
NASDAQ Futures: +37 (+0.3%)
Good morning friends!
Futures are rising as traders try to build on the market’s best week since June.
Let’s get right to it!
Big Week of Earnings, Inflation Data
The market is looking to build on last week’s rally after the major indexes all logged their largest weekly gains since June.
Megacap tech names are all set to report Q3 results this week.
Microsoft (MSFT) and Alphabet (GOOGL) report Tuesday, Meta (META) Wednesday, with Apple (AAPL) and Amazon (AMZN) on Thursday.
The focus is on GOOGL and META after Snap’s (SNAP) revenue miss last week.
This week will also cap off with the Fed’s preferred inflation gauge coming out Friday morning.
The core PCE price index is expected to have slowed in September after accelerating more than expected in August.
Tesla Cuts Car Prices in China
Tesla (TSLA) shares are down 2.8% ahead of the open after the electric automaker cut some of its car prices in China.
The starting price for the Model 3 is now 265,900 Chinese yuan ($36,615) from 279,900 yuan ($38,415.99).
The Model Y price dropped to 288,900 yuan ($39,779.14) from 316,900 yuan ($43,634.51).
The cuts reverse some of the earlier price increases Tesla implemented due to inflation of raw material costs.
They also come after CEO Elon Musk said “China is experiencing a recession of sorts” last week.
Tesla delivered a record 83,135 vehicles in China in September, a monthly record for the company.
Chinese Tech Stocks Tumble
Chinese tech stocks listed in the U.S. are tumbling as President Xi Jinping tightens his grip on power in the country.
Alibaba (BABA) shares are dropping 10.9% in premarket trade with Baidu (BIDU) tumbling 11.9%.
Xi paved the way for his third term as president over the weekend and packed the core committee of power with loyalists.
The private tech sector in China has been under threat from Xi in recent years and those policies are expected to continue with him remaining in power.
Oil Prices Drop on Weak China Demand
Oil prices are falling this morning after Chinese data showed weak demand in September.
West Texas Intermediate crude futures are down 2% to $83 bbl while Brent crude futures are down 1.6% to $92 bbl.
China imported 9.79 million barrels per day of crude in September, down 2% year over year.
Eurozone Business Activity Drops
European business activity contracted further this month as surging energy costs put pressure on the economy.
The euro zone’s flash composite PMI fell to 47.1 in October from 48.1 last month.
Any reading below 50 represents a contraction.
Germany is seeing the worst slowdown so far with business activity falling to 44.1 from 45.7.
The euro dropped against the U.S. dollar following that data, trading at $0.982.