Tesla jumps up
Wall Street slightly up ahead of National Day
7/3/2023 8:41 p.m
On the bridging day before Independence Day, the US stock exchanges hardly move. After weak economic data, investors are now eagerly awaiting a reaction from the Fed on future interest rates. Tesla is having a good day.
On the eve of US Independence Day, Wall Street made little headway. The Dow Jones Index the standard values were hardly changed at the early end of trading at 34,418 points. The tech-heavy one Nasdaq advanced 0.2 percent to 13,816 points. The broad one S&P 500 increased 0.1 percent to 4455 points. “Due to tomorrow’s Independence Day, sales in the USA are likely to remain below average today. Many will certainly use the Tuesday holiday for a long weekend,” said Thomas Altmann, portfolio manager at asset manager QC Partners. In addition, investors were waiting for further economic figures that could provide indications of the Fed’s further monetary policy course.
“In the new week, US data are on the program, which can be assigned to the first row in terms of their importance and have the potential to significantly influence interest rate expectations,” wrote the experts at Helaba. The purchasing manager indices for US industry published at the start of the week were somewhat weaker than analysts had expected. Investors are now turning their attention to the minutes of the June Fed meeting, which the US Federal Reserve will present on Wednesday. The labor market data planned for Thursday and Friday are also eagerly awaited.
Delivery record drives Tesla
Trading was mainly in carmaker values. A delivery record helped the Tesla stock jumped nearly 7 percent to $279.82. According to its own statements, the electric car manufacturer recently handed over 466,140 cars to customers. Experts had expected only 445,000. “Tesla seems to be back on track and exudes a lot of optimism ahead of the quarterly figures in two weeks,” said Konstantin Oldenburger, analyst at broker CMC Markets.
However, Oldenburger was cautious. “It’s not yet clear whether the quarterly figures will be better as a result of the new delivery records.” The majority of Tesla vehicles delivered in the last quarter were the entry-level Model 3. In contrast, the higher-margin vehicles Model S and Model Y accounted for fewer than 20,000 deliveries. Also Rivian shot up by more than 17 percent after surprisingly strong delivery figures. In the wake of the two rivals, Lucid rose by over seven percent.
Hopes for Chinese state aid
Meanwhile, deaths during a drug study depressed the US-reported Astrazeneca share. The papers of the British pharmaceutical company lost 8.8 percent. The lung cancer drug Datopotamab deruxtecan, developed jointly with the Japanese company Daiichi Sankyo, has achieved the goals of the study. However, Astrazeneca reported the death of some patients. The lack of “clinically meaningful” details on the effectiveness of datopotamab is also a cause for concern, the experts at Bank Barclays wrote.
US-listed shares in Chinese companies were supported by hopes of state economic aid in China after further meager economic data. The papers of corporations like Alibaba, JD.Com and pinduoduo gained between 0.9 and 3.1 percent. Hopes of rising demand from China also boosted mining stocks. The shares of Rio Tinto, BHP, Southern Copper and Freeport-McMoRan climbed by 1.5 to 1.9 percent.