Coffee With Greta: New Year Begins For Traders
DJIA Futures: +144 (+0.4%)
SPX Futures: +22 (+0.6%)
NASDAQ Futures: +93 (+0.8%)
Good morning friends!
Futures are higher as traders gear up for the start of a new year on Wall Street.
Let’s get right to it!
Tesla Q4 Deliveries Fall Short
Tesla (TSLA) shares are falling 4.4% ahead of the open after reporting lower-than-expected Q4 deliveries.
The electric automaker delivered 405,278 vehicles in the fourth quarter and producer 439,701.
That brings Tesla’s total annual deliveries in 2022 to 1.31 million with total production at 1.37 million vehicles.
The annual numbers are a new record for the company and up 40% year over year.
But analysts were expecting Tesla to deliver around 427,000 vehicles in Q4.
Gold Surges To 6-Month High
Gold prices surged to a 6-month high early this morning as the recent rally continues.
Spot gold peaked at just below $1,850 per troy ounce on the London Metal Exchange.
U.S. gold futures are currently up 0.9% to $1,843.
Gold prices have been rising since the beginning of November.
Oil Prices Begin 2023 Lower
Oil prices are falling this morning amid weak demand in China and global economic concerns.
West Texas Intermediate crude futures are down 1.1% to under $79.50 bbl while Brent crude futures are down 1% to $85 bbl.
The latest data from China shows factory activity shrank in December as Covid cases surged in the country after authorities relaxed restrictions.
The IMF’s Managing Director also said over the weekend the the U.S., Europe, and China were all slowing simultaneously.
She said that will make 2023 tougher than 2022 for the global economy.
Treasury Yields Slip
U.S. Treasury yields are falling this morning as uncertainty about 2023 lingers over the market.
The 2-year yield is down 5 basis point to 4.38% while the 10-year yield is down 13 basis points to 3.75%.
Investors are looking ahead to key data ahead this week for clues about the state of the economy.
Busy Week Of Jobs Data
It will be a big week of economic data, mostly focused on the labor market.
On Wednesday, the Labor Department releases its November Job Openings and Labor Turnover Survey (JOLTS) and the Fed will release the minutes of its last meeting.
ADP then reports private employment numbers for December on Thursday while the Labor Department reports weekly jobless claims.
Then on Friday is the official December jobs report from the Labor Department.
This data is key for the market to gauge its expectations for Fed policy as the bank has said a slowdown in the labor market is needed in order to get inflation under control.
In Case You Missed It
- 2022 was Wall Street’s worst year since 2008. The Dow Jones ended the year 8.8% lower, while the S&P 500 dropped 19.4%, and the Nasdaq sank 33.1%. But the Dow and S&P 500 did post gains in the 4th quarter, breaking a three quarter losing streak. The Dow rose 15.4% in Q4 while the S&P 500 was up 7.1%. The Nasdaq still slipped 1.0% last quarter. Many analysts expect the bear market to persist into 2023 until a recession hits.