{"id":62916,"date":"2022-07-21T09:01:18","date_gmt":"2022-07-21T13:01:18","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=62916"},"modified":"2022-07-21T09:01:47","modified_gmt":"2022-07-21T13:01:47","slug":"coffee-with-greta-tsla-props-up-tech-stocks","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/07\/21\/coffee-with-greta-tsla-props-up-tech-stocks\/","title":{"rendered":"Coffee With Greta: TSLA Props Up Tech Stocks"},"content":{"rendered":"

DJIA Futures: <\/b>+34 (+0.1%)<\/span><\/p>\n

SPX Futures: <\/b>+13 (+0.3%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+81 (+0.7%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are higher as traders digest more Q2 earnings.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Tesla Reports Mixed Q2 Results<\/span><\/h2>\n

Tesla <\/b>(TSLA) shares are up 3% ahead of the open after reporting mixed Q2 results.<\/span><\/p>\n

The electric automaker reported adjusted earnings of $2.27 per share on $16.93 billion in revenue.\u00a0<\/span><\/p>\n

That topped analysts\u2019 expectations for adjusted EPS of $1.81 but missed estimates for $17.1 billion in revenue.<\/span><\/p>\n

Revenue rose 42% annually but automotive gross margins shrank to 27.9% from 32.9% in Q1 and 28.4% a year ago.\u00a0<\/span><\/p>\n

That drop was caused by inflation and more competition for parts.\u00a0<\/span><\/p>\n

Tesla maintained its guidance for \u201c50% average annual growth in vehicle deliveries,\u201d over a \u201cmulti-year horizon\u201d.<\/span><\/p>\n

United Airlines Tumbles After Q2 Profit Miss<\/span><\/h2>\n

United Airlines <\/b>(UAL) shares are dropping 6.8% in premarket trade after missing Q2 profit expectations.<\/span><\/p>\n

The airline reported adjusted earnings of $1.43 per share on $12.11 billion in revenue.\u00a0<\/span><\/p>\n

It was the company\u2019s first profitable quarter since before the pandemic but fell short of expectations. <\/span>
\n<\/span>
\n<\/span>Analysts were expecting adjusted EPS of $1.85 on $12.12 billion in revenue.<\/span><\/p>\n

The CEO said, \u201cIt\u2019s nice to return to profitability \u2014 but we must confront three risks that could grow over the next 6-18 months. Industry-wide operational challenges that limit the system\u2019s capacity, record fuel prices, and the increasing possibility of a global recession are each real challenges that we are already addressing.\u201d<\/span><\/p>\n

United estimated its Q3 capacity will be 85% of Q3 2019 levels and Q4 capacity would rise to 90% of 2019 levels.<\/span><\/p>\n

The airline lowered its growth expectations for 2023, now expecting to fly no more than 8% over 2019 levels vs its earlier forecast for 20% growth.<\/span><\/p>\n

American Airlines Slips On Weaker Outlook<\/span><\/h2>\n

American Airlines <\/b>(AAL) shares are slipping 3.7% ahead of the open despite reporting a profit in Q2.\u00a0<\/span><\/p>\n

The airline reported adjusted earnings of $0.76 per share on $13.42 billion in revenue.\u00a0<\/span><\/p>\n

That was in line with analysts\u2019 adjusted EPS expectations and beat revenue estimates for $13.4 billion.\u00a0<\/span><\/p>\n

Revenue rose 12% compared to pre-pandemic even as American flew 8.5% less of its Q2 2019 schedule.<\/span><\/p>\n

The company\u2019s unit costs surged 45% in the quarter compared to 2019 as fuel prices and other expenses soared.<\/span><\/p>\n

American forecast Q3 revenue will be 10% to 12% higher than 2019 levels but flight capacity will be 8% to 10% lower.<\/span><\/p>\n

Amazon Announces Healthcare Acquisition<\/span><\/h2>\n

Amazon <\/b>(AMZN) shares are up 1.2% in premarket trade after announcing it will buy primary healthcare provider One Medical.<\/span><\/p>\n

One Medical operates under <\/span>1Life Healthcare Inc <\/b>(ONEM) and trading in the stock has been halted.<\/span><\/p>\n

Amazon will buy the company in cash for $18 per share, totaling $3.9 billion.\u00a0<\/span><\/p>\n

The stock closed at $10.18 on Wednesday.\u00a0<\/span><\/p>\n

The senior vice president of Amazon Health Services said, \u201cWe think health care is high on the list of experiences that need reinvention.\u201d<\/span><\/p>\n

Weekly Jobless Claims Continue to Rise<\/span><\/h2>\n

Weekly jobless claims rose unexpectedly, signaling layoffs are rising across the country.\u00a0<\/span><\/p>\n

The Labor Department reported 251,000 Americans filed initial unemployment claims last week.\u00a0<\/span><\/p>\n

That was up 7,000 from the previous week and higher than expectations for claims to fall to 240,000.<\/span><\/p>\n

Continuing claims rose by 50,000 to 1.38 million in the week ending July 9.<\/span><\/p>\n

ECB Raises Rates for First Time in 11 Years<\/span><\/h2>\n

The European Central Bank approved its first rate hike in 11-years today.\u00a0<\/span><\/p>\n

The ECB pushed its benchmark rates up by 50 basis points, bringing the deposit rate to 0%.\u00a0<\/span><\/p>\n

Rates had been in negative territory since 2014.<\/span><\/p>\n

The ECB said, \u201cThe Governing Council judged that it is appropriate to take a larger first step on its policy rate normalization path than signaled at its previous meeting.\u201d<\/span><\/p>\n

The decision comes after Eurozone inflation hit a record-high at 8.6% in June.<\/span><\/p>\n

Oil Prices Slump On Demand Worries<\/span><\/h2>\n

Oil prices are falling today as demand worries squeeze the market.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are down 3.5% to $96.50 bbl while Brent crude futures are down 3.1% to $103.50 bbl<\/span><\/p>\n

The drop comes amid continued global recession fears after the ECB rate hike and as U.S. gas inventories rose sharply last week.<\/span><\/p>\n

The Energy Information Administration reported U.S. crude inventories fell by 400,000 barrels but gasoline stockpiles rose by 3.5 million barrels.<\/span><\/p>\n

The increase in gas inventories far exceeded expectations and comes as demand is slumping.<\/span><\/p>\n

Gas Prices Continue To Tumble<\/span><\/h2>\n

U.S. gas prices fell for the 36th day in a row today as those high inventory levels outpace demand.\u00a0<\/span><\/p>\n

AAA<\/span><\/a> shows the national average for regular gas fell nearly 3 cents overnight to $4.440\/gal.<\/span><\/p>\n

The national average for diesel also fell 2 cents overnight to $5.476\/gal.<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • The National Association of Realtors reported existing home sales tumbled 5.4% in June to a seasonally adjusted annual rate of 5.12 million units. That was lower than expectations and the slowest pace of sales since June 2020. The median price of an existing home sold last month rose to a new record-high of $416,000.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    DJIA Futures: +34 (+0.1%) SPX Futures: +13 (+0.3%) NASDAQ Futures: +81 (+0.7%) Good morning friends! Futures are higher as traders digest more Q2 earnings. Let\u2019s get right to it! Tesla Reports Mixed Q2 Results Tesla (TSLA) shares are up 3% ahead of the open after reporting mixed Q2 results. The electric automaker reported adjusted earnings of $2.27 per share on $16.93 billion in revenue.\u00a0 That topped analysts\u2019 expectations for adjusted EPS of $1.81 but missed estimates for $17.1 billion in revenue. Revenue rose 42% annually but automotive gross margins shrank to 27.9% from 32.9% in Q1 and 28.4% a year ago.\u00a0 That drop was caused by inflation and more competition for parts.\u00a0 Tesla maintained its guidance for \u201c50% average annual growth in vehicle deliveries,\u201d over a \u201cmulti-year horizon\u201d. United Airlines Tumbles After Q2 Profit Miss United Airlines (UAL) shares are dropping 6.8% in premarket trade after missing Q2 profit expectations. The airline reported adjusted earnings of $1.43 per share on $12.11 billion in revenue.\u00a0 It was the company\u2019s first profitable quarter since before the pandemic but fell short of expectations. Analysts were expecting adjusted EPS of $1.85 on $12.12 billion in revenue. The CEO said, \u201cIt\u2019s nice to return to profitability \u2014 but we must confront three risks that could grow over the next 6-18 months. Industry-wide operational challenges that limit the system\u2019s capacity, record fuel prices, and the increasing possibility of a global recession are each real challenges that we are already addressing.\u201d United estimated its Q3 capacity will be 85% of Q3 2019 levels and Q4 capacity would rise to 90% of 2019 levels. The airline lowered its growth expectations for 2023, now expecting to fly no more than 8% over 2019 levels vs its earlier forecast for 20% growth. American Airlines Slips On Weaker Outlook American Airlines (AAL) shares are slipping 3.7% ahead of the open despite reporting a profit in Q2.\u00a0 The airline reported adjusted earnings of $0.76 per share on $13.42 billion in revenue.\u00a0 That was in line with analysts\u2019 adjusted EPS expectations and beat revenue estimates for $13.4 billion.\u00a0 Revenue rose 12% compared to pre-pandemic even as American flew 8.5% less of its Q2 2019 schedule. The company\u2019s unit costs surged 45% in the quarter compared to 2019 as fuel prices and other expenses soared. American forecast Q3 revenue will be 10% to 12% higher than 2019 levels but flight capacity will be 8% to 10% lower. Amazon Announces Healthcare Acquisition Amazon (AMZN) shares are up 1.2% in premarket trade after announcing it will buy primary healthcare provider One Medical. One Medical operates under 1Life Healthcare Inc (ONEM) and trading in the stock has been halted. Amazon will buy the company in cash for $18 per share, totaling $3.9 billion.\u00a0 The stock closed at $10.18 on Wednesday.\u00a0 The senior vice president of Amazon Health Services said, \u201cWe think health care is high on the list of experiences that need reinvention.\u201d Weekly Jobless Claims Continue to Rise Weekly jobless claims rose unexpectedly, signaling layoffs are rising across the country.\u00a0 The Labor Department reported 251,000 Americans filed initial unemployment claims last week.\u00a0 That was up 7,000 from the previous week and higher than expectations for claims to fall to 240,000. Continuing claims rose by 50,000 to 1.38 million in the week ending July 9. ECB Raises Rates for First Time in 11 Years The European Central Bank approved its first rate hike in 11-years today.\u00a0 The ECB pushed its benchmark rates up by 50 basis points, bringing the deposit rate to 0%.\u00a0 Rates had been in negative territory since 2014. The ECB said, \u201cThe Governing Council judged that it is appropriate to take a larger first step on its policy rate normalization path than signaled at its previous meeting.\u201d The decision comes after Eurozone inflation hit a record-high at 8.6% in June. Oil Prices Slump On Demand Worries Oil prices are falling today as demand worries squeeze the market.\u00a0 West Texas Intermediate crude futures are down 3.5% to $96.50 bbl while Brent crude futures are down 3.1% to $103.50 bbl The drop comes amid continued global recession fears after the ECB rate hike and as U.S. gas inventories rose sharply last week. The Energy Information Administration reported U.S. crude inventories fell by 400,000 barrels but gasoline stockpiles rose by 3.5 million barrels. The increase in gas inventories far exceeded expectations and comes as demand is slumping. Gas Prices Continue To Tumble U.S. gas prices fell for the 36th day in a row today as those high inventory levels outpace demand.\u00a0 AAA shows the national average for regular gas fell nearly 3 cents overnight to $4.440\/gal. The national average for diesel also fell 2 cents overnight to $5.476\/gal. In Case You Missed It The National Association of Realtors reported existing home sales tumbled 5.4% in June to a seasonally adjusted annual rate of 5.12 million units. That was lower than expectations and the slowest pace of sales since June 2020. The median price of an existing home sold last month rose to a new record-high of $416,000.<\/p>\n","protected":false},"author":41,"featured_media":62921,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-62916","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/62916","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=62916"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/62916\/revisions"}],"predecessor-version":[{"id":62922,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/62916\/revisions\/62922"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/62921"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=62916"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=62916"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=62916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}