Corporate Woes Mount: Tesla, PVH, and Intel Shares Tumble Amidst Earnings Concerns
Corporate Woes Mount: Tesla, PVH, and Intel Shares Tumble Amidst Earnings Concerns
By:JJ Kinahan
Tesla, PVH, and Intel face setbacks and bitcoin faces fluctuating values
Market sentiment shifts: Fed rate cut expectations decline, sparking volatility amidst economic data scrutiny.
Corporate challenges emerge: Tesla, PVH, and Intel face setbacks, hinting at earnings season headwinds.
Geopolitical tensions escalate: Crude oil surges on Middle East unrest, while bitcoin faces fluctuating values.
The market commenced the week with consecutive setbacks, witnessing the S&P 500 sliding 0.7% and the Nasdaq Composite nearly 1%.
Despite volatility, which soared over 7% to close at 14.61, remaining beneath historical averages, bond yields climbed as the benchmark 10-year note saw a rise to 4.36%. This shift in equity and bond dynamics reflects dwindling market certainty regarding imminent Federal Reserve interest rate cuts.
Economic data releases are leaving Fed observers deciphering signals amidst robust growth, contrary to anticipated catalysts for multiple interest rate cuts this year. With just a 3% probability of a rate cut in May and a 63% likelihood in June, according to the CME—down from over 70% a week prior—the latest job openings report (JOLTs) underscored stronger-than-expected data.
Fed Chairman Powell's speech at 11:10 a.m. Central Time today marks a pivotal moment amid a flurry of Fed member addresses, preceding Friday's release of March's employment figures. Experts project 205,000 new jobs and a 3.9% unemployment rate.
Important stock moves
On Tuesday, Tesla (TSLA) shares plunged nearly 5% after the company posted disappointing first-quarter car deliveries, which were down 8.5% year over year. Shares of PVH Corp., (PVH), parent company of Calvin Klein and Tommy Hilfiger, experienced 22% drop, after executives projected an 11% first-quarter sales decline.
Similarly, shares of Intel (INTC) tumbled 5% after the company reported a $7 billion loss in semiconductor manufacturing, hinting at potential challenges for the forthcoming earnings season, while Disney grappled with a costly boardroom battle, reflected in unchanged premarket shares.
Commodities, crypto and data releases
In the commodities realm, crude oil prices surged nearly 2%, closing at $88.92, amid escalating tensions in the Middle East following accusations against Israel for an attack on an Iranian diplomatic building in Damascus. Conversely, bitcoin saw a 5% decline, resting at $68,500.
The market's recent profit-taking trend following a robust first quarter is underscored by a plethora of economic data releases, preceding the impending earnings season, set to commence with bank stocks.
The economic data, although robust, requires contextualization, with earnings likely to play a pivotal role. Positive earnings would corroborate a healthy and expanding economy, while weak earnings could signal heightened production costs with little yield—a scenario currently leaving investors in a state of cautious anticipation.
For today, a retesting of Tuesday's lows wouldn't be surprising, following yesterday's market pullback and subsequent rebound. Should yesterday's lows hold, a potential rally could ensue, while a break below yesterday's close could signal a retest of 5100 in the S&P 500. Amidst these dynamics, adherence to investment plans and long-term objectives remains paramount.
JJ Kinahan is CEO of IG North America—which includes tastylive, tastytrade and IG's FX Business. Kinahan traded for 21 years at the Chicago Board Options Exchange. He serves on the CBOE Advisory Board and the SIFMA Options Committee. @thejjkinahan
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.