news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Tesla's stock price fell sharply after the market closed.

On July 23rd local time, the three major U.S. stock indexes closed slightly lower. The financial reports of large technology companies such as Google and Tesla became the focus.

Although Tesla's second-quarter revenue was higher than expected, its adjusted earnings per share fell short of expectations. In addition, Tesla CEO Musk said that Tesla will deliver affordable models in the first half of next year, postpone the Robotaxi launch from August to October, and expect the production of the Roadster sports car to begin next year. As a result, Tesla's stock price fell more than 8% after the market closed.

The three major U.S. stock indexes closed slightly lower

On July 23rd local time, the three major U.S. stock indexes closed slightly lower. The Dow Jones Industrial Average fell 57.35 points, or 0.14%, to 40,358.09 points; the Nasdaq fell 10.22 points, or 0.06%, to 17,997.35 points; and the S&P 500 fell 8.67 points, or 0.16%, to 5,555.74 points.

The Russell 2000 index, which focuses on small-cap stocks, closed up more than 1%, extending last week's gains as traders attribute the recent outperformance of small-cap stocks to a large shift in funds from large technology companies that led gains earlier this year.

Investors are growing more optimistic about the prospect that the Federal Reserve will soon start cutting interest rates, as rate cuts would particularly benefit smaller and more cyclical companies.

On Tuesday's economic data, U.S. existing home sales fell more than expected in June as the median house price hit a new record high, but improved supply and lower mortgage rates raised hopes that housing market activity could rebound in the coming months.

The National Association of Realtors (NAR) reported that sales of previously owned homes fell 5.4% in June compared to May to a seasonally adjusted annual rate of 3.89 million units. Sales were also down 5.4% from June of last year. This was the slowest sales growth since December of last year.

The above data are all for houses that have been sold, mainly based on contracts signed in April and May.

In April and May this year, the average interest rate for a 30-year fixed mortgage in the United States jumped to more than 7%. Since then, the interest rate has fallen slightly, but it still remains at a high level of more than 6%.

Tesla's second-quarter results were mixed as it plunged after the market closed

In terms of sectors, eight of the eleven major sectors of the S&P 500 index fell and three rose. The energy sector and the utilities sector led the decline with a drop of 1.55% and 0.65% respectively, while the materials sector and the financial sector led the gains with a rise of 0.38% and 0.08% respectively.

Companies that make up 29% of the S&P 500's market value will report earnings this week, with Tesla and Google parent Alphabet becoming the first of the "Big Seven" to report results. Despite last week's sell-off, valuations of technology companies remain high. Investors are looking for more evidence that their businesses are strong and that the hype around artificial intelligence is justified.

Large technology stocks rose and fell. Boeing rose more than 4%, Amazon and Oracle rose more than 2%, Broadcom rose more than 1%, Apple, Microsoft, TSMC, Meta, and Google-A rose slightly, AMD, Netflix, Nvidia, Qualcomm, and ASML fell slightly, AMD and Intel fell more than 1%, and Tesla fell more than 2%.

Tesla closed down 2.04%, and the decline continued to expand after the market, falling more than 8% as of press time. Tesla's financial report released after the market showed that the company's second-quarter revenue was $25.5 billion, while analysts expected $24.63 billion; adjusted earnings per share were $0.52, while analysts expected $0.60; operating profit was $1.61 billion, while analysts expected $1.81 billion; gross profit margin was 18%, while analysts expected 17.4%; free cash flow was $1.34 billion, while analysts expected $1.92 billion; sales growth rate is still expected to be significantly reduced in 2024; production is expected to increase month-on-month in the third quarter. Tesla said that the focus of the entire company remains on reducing costs. "New car plans, including more affordable models, will still begin production in the first half of 2025. These vehicles will leverage our next-generation platform and some of the features of our existing platforms, and will be able to be produced on existing vehicle production lines." Tesla said in its second-quarter earnings report. In addition, during the earnings call, Tesla CEO Musk said that the Robotaxi launch would be postponed from August to October; production of the Roadster sports car is expected to begin next year.

Google-A closed up 0.07%, and once rose about 3% after the market, but then turned to decline, and fell by more than 2% as of press time. Alphabet's second-quarter revenue was $84.74 billion, compared with $74.604 billion in the same period last year, a year-on-year increase of 14%, and analysts expected $84.37 billion; Google Cloud revenue in the second quarter was $10.35 billion, and analysts expected $10.09 billion; Google advertising revenue in the second quarter was $64.62 billion, and analysts expected $64.53 billion; other business revenue in the second quarter was $365 million, and analysts expected $389.6 million; revenue excluding traffic acquisition costs in the second quarter was $71.36 billion, and analysts expected $70.7 billion; operating profit in the second quarter was $27.43 billion, and analysts expected $26.37 billion.

Amazon rose 2.11%. Italian tax police seized about 121 million euros from the Italian subsidiary of e-commerce giant Amazon as part of an investigation into suspected tax fraud and illegal labor practices, prosecutors' documents showed on Tuesday. In a 94-page order, the Milan prosecutor's office accused the logistics service Amazon Italia Transport of circumventing labor and tax laws and relying on cooperatives or limited liability companies to provide workers, while omitting value-added tax and reducing social security payments.

AMD closed down 1.2%. South Korea's Samsung announced that it will cooperate with AMD to provide high-performance FCBGA (Flip Chip Ball Grid Array) substrates for hyperscale data center products, and invested 1.9 trillion won (about 9.975 billion yuan) to promote related technologies and manufacturing capabilities to meet the highest industry standards and future technology needs.

Most financial stocks rose. Mizuho Financial rose more than 2%, Travelers Insurance, U.S. Bancorp, Goldman Sachs, AIG, and Morgan Stanley rose more than 1%, Wells Fargo, American Express, Deutsche Bank, Charles Schwab, Bank of New York Mellon, Capital One Financial, Bank of America, Citigroup, BlackRock, and JPMorgan Chase rose slightly, Regions Financial, MetLife, Hartford Financial, Barclays, UBS, and Allstate Insurance fell slightly, and Visa and MasterCard fell more than 1%.

Energy stocks fell across the board. American Energy, Chevron, Apache Oil, ExxonMobil, Marathon Oil, ConocoPhillips, Occidental Petroleum, Shell, Imperial Oil, Petrobras, and BP (US) fell by more than 1%, while Schlumberger and Duke Energy fell slightly.

As for other popular companies, UPS closed down 12.05%, the largest single-day drop in 15 years. The company's second-quarter revenue and adjusted earnings per share were both lower than expected, and it lowered its revenue forecast for 2024. UPS's chief financial officer said that 11,500 employees have been laid off, with a target of 12,000.

General Electric closed up 5.68%. General Electric's adjusted revenue in the second quarter was $8.22 billion, compared with an estimated $8.44 billion. The company's CEO Culp said: "I am 100% sure that I will stay at General Electric and will not go to Boeing."

Spotify closed up 11.96%. The company's second-quarter revenue increased 20.2% year-on-year to 3.81 billion euros, basically in line with analysts' expectations; gross profit was 1.11 billion euros, up 45% year-on-year, slightly higher than analysts' expectations of 1.07 billion euros; earnings per share were 1.33 euros, higher than analysts' expectations of 1.04 euros. Looking ahead, Spotify expects operating profit of 405 million euros in the third quarter, far higher than analysts' average expectation of 298 million euros.

General Motors closed down 6.42%. Thanks to strong demand for gasoline vehicles in North America, GM's second-quarter revenue was $49.77 billion, and its net profit attributable to shareholders increased by 14% year-on-year. It is expected that its full-year net profit before interest and taxes will reach $13 billion to $15 billion. GM's second-quarter revenue set a quarterly record, and its adjusted net profit increased by 37% year-on-year. However, the company said it would postpone the launch of the Buick electric vehicle originally planned for 2024, and would postpone the opening of the electric pickup truck factory by 6 months to 2026. The company also attributed its strong earnings this quarter to "strong and stable pricing" and "greater focus on profit margins and capital efficiency", and plans to reduce the average price of its models by 1% to 1.5% in the second half of this year.

CrowdStrike rose 1.88%, ending its previous losing streak. In the previous two trading days, the stock had fallen by 23%. As the stock fell, Wood Sister bought nearly 60,000 shares.

Popular Chinese stocks fell across the board, with the Nasdaq China Golden Dragon Index (HXC) closing down 1.84%. Xpeng Motors and iQiyi fell more than 6%, NIO fell more than 4%, Li Auto and Bilibili fell more than 3%, Kingsoft Cloud, Vipshop, JD.com, Huya, Ctrip, and Baidu fell more than 2%, Tiger Securities fell more than 1%, New Oriental, Pinduoduo, Alibaba, and NetEase fell slightly, Futu Holdings rose more than 1%, and Tencent Music rose more than 2%.

In other markets, the price of West Texas Intermediate (WTI) crude oil futures for September delivery on the New York Mercantile Exchange fell by $1.44, or 1.84%, to close at $76.96 per barrel. The price of Brent crude oil futures for September delivery fell by $1.39, or 1.69%, to close at $81.01 per barrel.

Editor: Wan Jianyi

Proofreading: Gao Yuan

Copyright Notice

All original content on the Securities Times platforms may not be reproduced by any unit or individual without written authorization. The Securities Times reserves the right to pursue the legal liability of the relevant actors.

For reprint and cooperation, please contact the Securities Times assistant, WeChat ID: SecuritiesTimes

" Type="normal"@@-->

END

" Type="normal"@@-->