December 2, 2022

Nasdaq 100 futures drop as Tesla shares drop after earnings

Nasdaq 100 futures drop as Tesla shares drop after earnings

Nasdaq 100 futures fell on Thursday as traders weighed Tesla’s latest quarterly numbers along with prices reaching multi-year highs.

Futures linked to the Nasdaq 100 Index are down 0.5%, while futures for the S&P 500 Index are down 0.2%. Dow Jones Industrial Average futures rose 15 points, or 0.05%.

Tesla shares fell 5.4% in pre-market trading after the electric car maker Wednesday night Reported third-quarter revenue that came in below analysts’ expectations, although it outperformed the profits. Revenue came in at $21.45 billion, less than the $21.96 billion forecast by analysts polled by Refinitiv.

Earnings season continues Thursday, with Freeport-McMoRan, American Airlines, CSX and AT&T all set to announce.

Meanwhile, the benchmark 10-year Treasury yield hit 4.18% on Thursday, trading briefly at levels not seen since 2008. It recently rose only 2 basis points at 4.14%. Rising rates have been a headwind for equities throughout the year as the Federal Reserve continues to try to cool inflationary pressures not seen in decades.

“We are in this situation where the Federal Reserve is in control,” Brian Talkington, managing partner at Requisite Capital Management, said Wednesday on CNBC’s “Closing Bell: Overtime.” “The Fed is leading for two years, and as long as the two-year rally continues, we will not bottom in stocks, and the rally in stocks will not continue.”

Wall Street exits bearish session, with major averages lower Two-day winning streak Although all three indicators remain on track for a positive week. The Dow Jones Industrial Average fell 99.99 points, or 0.33%. The Nasdaq Composite is down 0.85%, while the S&P 500 is down 0.67%.

On the economic front, the Philadelphia Fed Manufacturing Survey and weekly jobless claims data are expected on Thursday before the bell.