Tesla Q3 Earnings Drop As Price Cuts Squeeze Margins But Fail To Boost S♉ales

Tesla (TSLA) 澳洲幸运5官方开奖结果体彩网:announced third-quarter res🦄ults Wednesday that fell short of analysts' expectations amid an ongoi🌸ng price war that has hurt 🍌margins.

The electric vehicle maker said revenue in the third quarter rose 9% to $23.35 billion, while adjusted earnings dropped 37% to 66 cents per share. Analysts𝓰 surveyed by Visible Alpha had estimated tha𒁃t Tesla would report revenue of $24.3 billion and adjusted EPS of 73 cents.

Tesla said profitability was hit by a decline in the 澳洲幸运5官方开奖结果体彩网:average selling price of its vehicles, negative foreign exchange effects, and increased operating expenses tied to its 澳洲幸运5官方开奖结果体彩网:Cybertruck, artificial intelligence🐈, and other research and developme🅷nt projects.

Operating income tumbled 52% from a year earlier to $1.76 billion in the third quarter, while operating expenses increased 43% over the same period. Tesla's 澳洲幸运5官方开奖结果体彩网:operating margin slid to 7.6%, compared with 17.2% in the third quarter🥀 of 2022.

Tesla shares were up about 1% in after-hours trading Wednesday, after falling 4.8% to $242.68 in regular trading. The stock has gained about 10% over the past year but is well below its 2021 high of more than ﷽$400.

-Nathan Reiff

Netflix Q3 Earnings Beat on Password Tracking, Ad-Supp𝐆orted Tier🅰s

Netflix's (NFLX) 澳洲幸运5官方开奖结果体彩网:rev🍒enue increased 🎶for the third quarter as the financial impacts of its password-sharing crackdown and ad-supported subscription tier, launche🐷d in the last year, began to accelerate.

Netflix Q3 earnings summary

• Net Income: $1.67 billion, or $3.73 per share vs. $1.4 billion, or $3.10 per share last year
• Revenue: $8.5 billion vs. $7.9 billion a year ago
• Total subscribers: 247.15 million vs. 223.09 million a year ago

Netflix subscriptions grew by 10.8% year-over-year to 247 million after adding 5.9 million global subscribers in the second quarter.

"Adoption of our ads plan continues to grow—with ads plan membership up almost 70% quarter-over-quarter—and 30% of sign-ups in our ads countries are, on average, to our ads plan, with more work to do to scale this business," the company said in a letter to shareholders.

Shares jumped more than 12% i🀅n after hours trading.🍰

-Nathan Reiff

Dow Dives More than 30🅺0 Points on Surging Yields, War Worries

The 澳洲幸运5官方开奖结果体彩网:Dow Jones Industrial Average plummeted 332 points, or nearly 1%—澳洲幸运5官方开奖结果体彩网:its biggest decline in two weeks—as bond yields rose to their highest levels in more than a decade a♋nd investors monitored the conflict in the Middle East. 

Procter & Gamble (PG) shares jumped 2.6% after the 澳洲幸运5官方开奖结果体彩网:c🦩onsumer products giant said revenue increased 6% in the third quarter as higher prices aꦫnd higher gross m🎀argins helped it to deliver better-than-expected earnings. 

McDonald's (MCD) moved higher by nearly 2%, a rare bright spot in the consumer discretionary sector, which lost more than 2% today. Consumer staples and energy were🍌 the only sec🌜tors to post gains today.

Chevron (CVX) shares climbed 0.8% on a nearly 2% rise in 澳洲幸运5官方开奖结果体彩网:West Texas I𓄧ntermediate crude oil prices, as investors worried about the impact the ongoing Israel-Ham🌸as🐼 conflict could have on global supply. 

Boeing (BA) shares nudged up less than 0.1% after it reached a production deal with its supplier Spirit AeroSystems (SPR) to 澳洲幸运5官方开奖结果体彩网:shore up its a💃ircra🔯ft production system after a se🎐ries of quality issues led Boeing to delay deliveries. Spir🦋it shares soared 23%.

Walgreens Boots Alliance (WBA) shares fell 7% to lead the Dow 30 lower. Caterpillar (CAT) shares dropped almost 5%, part of an industrials sector tanked by shipping company J.B. Hunt Transportation Services’ (JBHT) 澳洲幸运5官方开奖结果体彩网:disappointing earnings report.

Goldman Sachs (GS) shares declined by 2.4%, continuing its decline after yesterday’s earnings repo♈rt showed third-quarter profits shrank by a third. 

Travelers Companies (TRV) shares dipped 0.7% after it reported a th🐈ird-quarter earnings miss as the i🎐nsurance provider’s catastrophe losses expanded.

-Terry Lane

Half of Global Fund Managers Expecting a Weaker World Econo💯my

Hal🐻f of global fund managers expect a weaker glꦉobal economy over the next 12 months, according to Bank of America's October 2023 Global Fund Manager Surv🦋ey.

Forty-four percent of fund managers expect the global slowdown to be severe enough to cause a 澳洲幸运5官方开奖结果体彩网:recession in the first half of 2024, compared with 36% who said the same in♏ September. Just 5% expect a recession to start before the end of this year, while 25% ruled out a recession within the next 18 months.

Amid heightened recession fears, 30% of fund managers now expect a "hard landing" for the global economy, up from just 21% in September.

On a positive note, roughly 80% of fund managers expect inflation to subside over the next 12 months, while three-quarters expect a steeper 澳洲幸运5官方开奖结果体彩网:yield curve.

-Mack Wilowski

ASM𒈔L Orders Miss Forecasts, and the Firm Warns 2024 Sales Will Be Flat

European tech giant 澳洲幸运5官方开奖结果体彩网:ASML Holding NV (ASML) 澳洲幸运5官方开奖结♑果体彩网:reported significantly fewer orders than expected and warned about a slowdown in sales in 2024 as customers spend💦 less.

The Netherlands-based semiconductor equipment maker posted third-quarter fisca🥀l 2023 bookings of 2.6 billion euros ($2.74 bil🌌lion), well below estimates of 4.5 billion euros ($4.75 billion).

CEO Peter Wennink indicated that customers “continue to be uncertain about the shape of the demand recovery” in the chip industry. Because of that, ASML now🅠 predicts 2024 sales to be flat from 2023, whi🐷le analysts were looking for an increase of 7%.

澳洲幸运5官方开奖结果体彩网:New York Registry Shares of ASML Holding NV were more than 4% lower Wednesday afternoon, but they remained in positive territory ☂for 2023.

-Bill McColl

Midday Market Movers

Nasdaq Inc. (NDAQ): Sha🧸res of the operator of America’s second-largest stock exchange gained 🦩5% after its third-quarter earnings beat Wall Street estimates thanks to revenue gains by its index and anti-financial crime units. 

DexCom Inc. (DXCM): Shares of the glucose monitoring tech company rose more than 4% after the CEO of Abbott Laboratories (ABT) said markets are overestimating the blow that weight loss drugs like Ozempic will deal to medical device makers’ s🍸ales. Before Wednesday’s gains, DexCom stock had fallen 42% from mid-July highs. Abbott shares gained more than ♛3%.

Albemarle Corp. (ALB): Shares of the lithium miner fell 9% after Bank of ꦬAmerica Securities downgraded the stock to underperform, citing the effect that lithium oversupply will have on prices.

Lucid Group (LCID): Shares of the luxury electric vehicle maker fell more than 9% a day after reporting 澳洲幸运5官方开奖结果体彩网:it delivered 1,457 cars in the thꦚird quar🉐ter, far fewer than analysts were expecting. 

Cleveland-Cliffs Inc. (CLF): Shares of the steel maker were 8% lower after Bloomberg reported U.S. and European Union officials are negotiating an agreement that would either temporarily or permanently remove Trump-era tariffs on European steel.

The Gold Rally Continues

Gold futures were up more than 1% by midday Wednesday, as a deadly blast at a hospital in Gaza stoked fears ﷺthe fighting could escalate and spill over into a ꦗwider regional conflict.

Gold rose as high as $1,970 Wednesday morning as investors sought out 澳洲幸运5官方开奖结果体彩网:safe havens, continuing a tre💝nd that began on Oct. 7, when Hamas militants attacked꧋ Israel.

Morgan Stanley's Profit Falls on Higher Costs and Slow Merger and IPO Activity

Morgan Stanley (MS) 澳洲幸运5官方开奖结果体彩网:shꩵares tumble💯d over 7% Wednesday morning after reporting profit declined as sales at the investment bank’s wealth management and 澳洲幸运5官方开奖结果体彩网:investment banking divisions fell short of estimates.

Morgan Stanley reported third-quarter fiscal 2023 earnings dropped 8.5% from a year ago to $2.41 billion, or $1.38 per share. Revenue was up 2.2% to $13.27 billion.

Revenue at the wealth management unit was $6.4 billion, missing forecasts by some $200 million because of higher compensation costs. Investment banking sector sales slumped 26.5% to $938 million, also well below expectations. The company pointed to weakness in mergers and 澳洲幸运5官方开奖结果体彩网:initial public offerings (IPOs) for the decline.

Shares traded at their lowest level in more t👍han a year by midday Wednesday.

-Bill McColl 

10-Year Yield Hits New 16-Year High

Treasury yields surged Wednesday morning, with the 10-year yieꦦld topping 4.9% for the first time since August 2007.

The yield on 30-year Treasury bonds exceeded 5% for only the third time in the la🐻st 16 years.

Higher Prices Drive Procter & Gamble's Better-Than-Expected Earnings

Procter & Gamble's (PG) 澳洲幸运5官方开奖结果体彩▨网:first-quarter earnings for fiscal 20🗹24 topped analyst expecta🌱tions as higher prices boosted the company's sales of household necessities, even as some business segments saw consumeꦡrs pull back.

The consumer goods manufacturer's 澳洲幸运5官方开奖结果体彩网:net income rose to $4.52 billion, or $1.83 per share, up roughly 17% from the ye𒐪ar-ago quarter. Sales climbed 6% year-over-year to $21.87 billion as the company increased prices on many of its beauty, household, and health care items.

Some of the anticipated pullback in consumer spending has already begun, though not enough to dent Procter & Gamble's financials. Sales volume in its Grooming and Baby, Feminine & Family Care segments fell 2% and 3% respectively, even though higher prices drove revenue higher.

Procte🙈r & Gamble share♍s were nearly 3% in early trading.

-Nathan Reiff

Stocks Making the Biggest Moves Premarket

Gains:

• Spirit Aerosystems Holdings Inc. (SPR): Shares jumped about 12% after the airplane parts maker announced an agreement with Boeing indicating the two companies will continue to work together. Spirit stock has fallen more than 40% this year 澳洲幸运5官方开奖结果体彩网:amid𝓡 production delays caused by defective parts.
• Abbott Laboratories (ABT): The healthcare products maker’s shares rose more than 2% after it reported better-than-expected third-quarter earnings, crediting demand for medical devices like blood glucose monitors, sales of which analysts have been predicting will take a hit from the rise of weight-loss drugs like Ozempic. 
• Procter & Gamble Co. (PG): Shares rose about 2% after the consumer goods company beat earnings expectations with sales buoyed by higher prices. 

Losses:

• United Airlines Holdings Inc. (UAL): The airline’s shares fell more than 5% after it offered a fourth-quarter earnings forecast reflecting the halting of flights to Tel Aviv, saying a pause through the end of the year would reduce fourth-quarter earnings to about $1.50 per share, from $2.55 in the same quarter last year.
• ASML Holding NV (ASML): Shares of the semiconductor equipment maker slumped more than 3% after it said third-quarter bookings fell 42% from last year amid a slowdown in the chip business. 
• Morgan Stanley (MS): The investment bank’s shares fell more than 3% after it reported a 9% drop in earnings last quarter, with declines in investment banking and trading revenue offsetting much of an increase in its wealth-management business.

Futures Lower as Oil Prices Rise

Futures cꦅontracts connected to the Dow Jones Industrial Average were 0.2% lower in premarket trading as oil prices rose on worries oil heavyweights like Iran could become involved in the conflict in Israel and Palestine.

S&P 500 futures contracts were down about 0.4% a꧒ little over an hour before ဣthe open.

Nasdaq 100 futures fell 0.5%.