Coffee With Greta: Tesla’s Big Losing Streak
DJIA Futures: +35 (+0.1%)
SPX Futures: +1 (+0.03%)
NASDAQ Futures: -6 (-0.1%)
Good morning friends!
Futures are flat as traders look ahead to the new year.
Let’s get right to it!
Tesla Headed For Worst Year Ever
Tesla (TSLA) shares are falling 3.6% ahead of the open, extending the company’s recent losing streak to 8 days.
The drop comes after TSLA plunged 11.4% on Tuesday and is down 44% so far in December.
The tumbling stock price has the automaker on track for its worst quarter and year on record.
The stock is down 69% in 2022 and has fallen 73% from its record high in November 2021.
Tesla has only had one other negative year since its IPO in 2010, an 11% drop in 2016.
Southwest Still Canceling Flights
Southwest Airlines (LUV) shares are down 1.5% in premarket trade as the airline continues to cancel flights.
The company announced on Tuesday it only planned to fly about a third of its schedule “for the next several days” in an attempt to reset its operations.
That means more flight cancellations today after Southwest canceled more than 2,500 on Tuesday.
In a message to employees this week, the CEO said, “we’ve got to get out of this. We’ve got to get to the point where we’re reliable and we get our Customers, our Crews, our aircraft, everything on track.”
Treasury Yields Mixed As Investors Look To 2023
Treasury yields are mixed this morning as investors look ahead to 2023 and brace for a recession.
The 2-year yield is down 2 basis points to 4.35% with the 10-year yield up 8 basis points to 3.83%.
There’s uncertainty about what the Fed will do in the face of a recession and continued inflation pressures next year.
The first Fed meeting is not until February 1.
CME Group’s FedWatch Tool show 69.8% of traders expecting just a 25 basis point rate hike at that meeting with 30.2% anticipating another 50 basis point move.
Pending Home Sales Expected To Fall
The National Association of Realtors reports November pending home sales at 10:00 a.m. ET.
That report is expected to show pending sales fell 1.8% following the 4.6% decline in October.
Pending sales represent purchase contracts signed during the month with those sales expected to close in 30 to 60 days.
The metric is a leading indicator for existing home sales.
In Case You Missed It
- U.S. home prices fell for the fourth straight month in October. The S&P Case-Shiller national home price index fell 0.3% monthly and rose 9.2% year over year. That was a decline from the 10.7% annual gain in September and down sharply from the record price gains seen earlier this year. The Federal Housing Finance Agency’s home price index was flat on a monthly basis and up 9.8% year over year.