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📈 Tesla's Shocking Earnings
TKO Group makes $3.2B acquisition from Endeavor, Intel scores a win over EU, US oil inventories boom, Boeing strike extended, Tesla reports surge in profits
Evelio Silvera
October 24, 2024
In partnership with
Good morning.
⚡ The Fast Five → TKO Group makes $3.2B acquisition from Endeavor, Intel scores a win over EU, US oil inventories boom, Boeing strike extended, Tesla reports surge in profits
And now…
⏱️ Your 5-minute briefing for Thursday, October 24, 2024:
MARKET BRIEF
Before the Open
As of market close 10/23/2024.
Pre-Market
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Fear & Greed
*DOWN 1 pt
Trends
Market Dip Signals Buying Opportunity as Tech and Fast Food Giants Reset
Markets in Review: All major indexes closed lower Wednesday - Nasdaq down 1.6% to 18,276, while the S&P 500 shed 0.9% to 5,797. But here's why that's not the whole story.
The big picture: Wall Street's taking a breather as Q3 earnings season hits full stride. While some heavy hitters stumbled (looking at you, McDonald's and Enphase), this pullback could be setting up a classic "buy the dip" scenario heading into year-end.
Smart money knows corrections are normal - what matters is the long-term trajectory. With the 10-year Treasury yield at 4.24% and signs of economic resilience, the stage might be set for a Q4 rally.
Go deeper:
Tech sector reality check: Solar giant Enphase ($ENPH) tumbled 15% on missed earnings, but this could be a sector-wide reset that creates entry points for long-term investors
Old economy meets new challenges: McDonald's ($MCD) 5% drop on E. coli concerns shows even blue chips aren't immune to short-term headwinds
Hidden gem alert: AT&T ($T) surged 4.6% despite revenue dips, proving Wall Street rewards companies that maintain guidance even in tough times
What they're saying: "There are more inventory choices for consumers, lower mortgage rates than a year ago, and continued job additions," says NAR Chief Economist Lawrence Yun, painting a surprisingly optimistic picture of the housing market.
WHAT WE’RE WATCHING
Events
Today: Dept. of Labor - Unemployment Claims, 8:30AM
Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.
Earnings Reports
Today: S&P Global, Union Pacific, Honeywell, KKR, Northrop Grumman, Capital One, Keurig Dr Pepper, Barclays
Tomorrow: HCA Healthcare, Colgate-Palmolive, Aon, Centene, AutoNation
MARKET BRIEF
Leading News
Tesla's Profit Surge Signals EV Giant's Resilience
Why it matters: Tesla's surprising profit beat and Musk's bullish growth predictions show the EV leader isn't just surviving the electric vehicle wars - it's planning to thrive. This comes despite mounting competitive pressure and recent stock volatility.
The big picture: Tesla (TSLA) delivered a knockout Q3 profit of 72 cents per share, blowing past Wall Street's expected 58 cents. While revenue slightly missed estimates at $25.18 billion, the company's ability to expand margins in a brutal EV price war speaks volumes about its operational efficiency.
Most telling: The company's $739 million in regulatory credit revenue - essentially pure profit - shows Tesla still has an ace up its sleeve that competitors can't match.
Go deeper:
Autonomous ambitions accelerate: Musk claims Tesla is producing "35,000 autonomous-capable vehicles weekly" and plans to launch robotaxi services by 2025. While skepticism is warranted, the potential market is massive.
Cybertruck finally delivers: The futuristic pickup achieved positive gross margins and became America's third-best-selling EV, suggesting Tesla can still innovate profitably.
Energy business booming: Often overlooked, Tesla's energy storage revenue surged 52% to $2.38 billion, highlighting the company's diversification beyond cars.
What they're saying: "Our best guess is vehicle growth will reach 20% to 30% next year, driven by lower cost vehicles and the advent of autonomy," says CEO Elon Musk.
The bottom line: While bears focus on competitive threats, Tesla's expanding margins and growing energy business suggest the company is building a more resilient profit engine. For long-term investors, the recent stock pullback (-18% in October) might offer an entry point - if you can stomach the volatility and believe in Musk's ambitious vision.
Headlines
TKO Group to acquire IMG, Professional Bull Riders and On Location from Endeavor for $3.25 billion (link)
Oil drops as US inventories balloon, traders watch Middle East crisis (link)
Intel scores fresh win against EU after top court backs annulment of billion-euro antitrust fine (link)
Boeing strike extended after machinists union rejects contract (link)
American Airlines to pay record $50 million fine over its treatment of disabled passengers (link)
CRYPTO
Fear & Greed
*DOWN 2 pts
Headlines
DAILY SHARE
On the Socials
*Hat-tip to netcapgirl
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