Dow Jones Futures Fall As Treasury Yields Eye 5%; Tesla Dives On These Elon Musk Warnings

Dow Jones futures and S&P 500 futures experienced slight declines on Thursday morning, while Nasdaq futures saw a slight increase. The 10-year Treasury yields continue to rise towards 5%. In the market, Tesla (TSLA) faced a drop in stock value due to weak earnings and warnings from CEO Elon Musk regarding the Cybertruck and other issues. On the other hand, Netflix (NFLX) saw a surge in stock value following strong subscriber growth and price hikes. Companies such as Taiwan Semiconductor (TSM) and Lam Research (LRCX) also reported their earnings. In other news, Costco Wholesale (COST) CEO Craig Jelinek will step down on Jan. 1, with COO Ron Vachris taking over. Costco’s stock value experienced a slight decline. Four stocks to keep an eye on near buy points are Adobe (ADBE), Arista Networks (ANET), Microsoft (MSFT), and Meta Platforms (META). ANET and META are on the IBD Leaderboard, Meta is on SwingTrader, and ADBE, ANET, and META are on the IBD 50. MSFT is on the IBD Long-Term Leaders list. The stock market experienced sharp losses on Wednesday due to high Treasury yields and disappointing earnings reports or guidance. In today’s trading, Dow Jones futures fell 0.1%, S&P 500 futures lost 0.1%, and Nasdaq 100 futures rose 0.1%. Tesla, Netflix, and LRCX are all members of the S&P 500 and Nasdaq 100. The 10-year Treasury bond yield reached 4.98% after rising 6 basis points to 4.9% on Wednesday. Crude oil futures saw a 1% decline while crude prices rose 1.9% to $88.32 a barrel on Wednesday. Fed Chief Jerome Powell is scheduled to speak at noon at the Economic Club of New York. While some policymakers have indicated that there is no need for another Fed rate hike, Powell may leave the door open. It’s important to note that premarket action in Dow futures and other markets does not necessarily indicate actual trading during regular stock market sessions. On Wednesday, the Dow Jones Industrial Average fell 1%, dropping below the 200-day line. The S&P 500 index retreated 1.3%, and the Nasdaq composite lost 1.6%, with both falling below their 21-day lines. The small-cap Russell 2000 tumbled 2.1%. With the exception of the energy sector, most leading stocks and sectors struggled. Adobe stock is slightly below a 570.24 flat-base buy point. Meta stock is just below a 326.20 buy point. Microsoft stock is working on a 366.78 consolidation buy point. ANET stock is just below a 198.46 cup-with-handle buy point. Tesla earnings per share fell 37% to 66 cents, well below expectations. Sales also missed estimates, growing only 9% to $23.35 billion. CEO Elon Musk expressed caution and issued warnings during the earnings call, which led to a decrease in Tesla’s stock value. Netflix added 8.76 million streaming subscribers, exceeding expectations. The company’s earnings were also above predictions, while revenue met expectations. Lam Research’s earnings beat Q4 views, and its revenue also exceeded expectations. The chip-equipment maker provided guidance in line with expectations. Tesla’s stock value dropped by 7% early Thursday, while Netflix’s stock rose by more than 10%. LRCX stock fell modestly in overnight trade. TSM stock rose slightly. ASML rebounded after experiencing a slump on Wednesday.

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Olivia Carter

Olivia Carter revs up excitement in the world of NASCAR. As a dedicated motorsports enthusiast, she covers race results, driver profiles, and the latest developments in the NASCAR world, keeping fans on the edge of their seats.