Investors are gearing up for a major event this Wednesday, March 1st – Tesla’s Investor Day. The market is expecting big news, including a new Tesla EV platform and confirmation of a planned Mexico factory.[0] CEO Elon Musk has teased the public with his “Master Plan 3” and may offer up more news.[1]
The big news of the day is expected to be the unveiling of Tesla’s “generation 3” platform, which is intended to greatly reduce the cost of manufacturing, allowing for a much cheaper Tesla model. Investors are also looking for more clarity on Tesla’s capital structure and the possibility of a stock buyback policy.[2] Elon Musk has said his “Master Plan 3” is about a “path to a fully sustainable energy future for Earth,” however, analysts say they know few details and doubt there will be any new product announcements.[3]
Aside from Tesla’s event, other companies will also be holding investor days, including Goldman Sachs and Chevron. Earnings from Target, Rivian, Salesforce, Kroger, Broadcom and Dell could also impact the markets.[2]
The 10-year Treasury yield has been hovering around the 3.98% mark, dangerously close to 4%, which analysts say is a key psychological level for investors.[4] Bond prices are falling, as are stocks, creating a no-win scenario for investors.[4] The 10-year Treasury yield slipped 2 basis points to 3.91%, while the 2-year yield was basically flat at 4.80%.[4]
The Conference Board’s measure of consumer confidence in February posted a surprise decline, with the figure decreasing to 102.9, compared to the predicted level of 108.5.[5]
U.S. stocks fell modestly last week, with the S&P 500 closing the week 0.28% lower.[6] The Dow slid 0.13% for the week, the first time it’s lost ground for three consecutive weeks since September.[7] The Nasdaq edged down 0.1 percent to 11,455.54.[8]
Traders are still betting that faster readings could trigger an outsized hike in March, with the CME Group’s FedWatch indicating a 27% chance of a 50 basis point increase.[9] The market is now pricing in 30bp for March, including a 20% possibility of a 50 basis point hike.
0. “S&P 500 Set To Retake Key Level; Big Tesla News Due” Investor’s Business Daily, 27 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-market-rally-damaged-tesla-investor-day/
1. “Futures: Market Closes Poorly; Tesla Sets Up For Investor Day” Investor’s Business Daily, 1 Mar. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-fall-market-rally-closes-poorly-tesla-stock-setting-up-for-investor-day/
2. “S&P 500 Forecast: Trying to bounce off support ahead of Tesla day” FXStreet, 28 Feb. 2023, https://www.fxstreet.com/news/sp-500-forecast-spx-clings-to-bottom-trendline-support-202302281435
3. “Dow Jones Futures: Warren Buffett Stock Falls On Earnings Miss; Tesla Investor Day On Deck” Investor’s Business Daily, 28 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-warren-buffett-stock-occidental-falls-on-earnings-tesla-investor-day-on-deck
4. “CNBC Daily Open: Most Major Assets Fell in February, Giving Investors No Safe Haven” NBC Connecticut, 1 Mar. 2023, https://www.nbcconnecticut.com/news/business/money-report/cnbc-daily-open-most-major-assets-fell-in-february-giving-investors-no-safe-haven/2985300/
5. “S&P 500, Dow, Nasdaq finish lower in uncertain trading” Seeking Alpha, 28 Feb. 2023, https://seekingalpha.com/news/3942074-sp-500-dow-finish-lower-in-uncertain-trading-nasdaq-posts-slight-gain
6. “Dow Jones, Nasdaq, S&P 500 weekly preview: Stocks are overvalued – analysts By Investing.com” Investing.com, 21 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-jones-nasdaq-sp-500-weekly-preview-stocks-are-overvalued–analysts-432SI-3009072
7. “CNBC Daily Open: Growth stocks look hot but investors should be wary” CNBC, 19 Feb. 2023, https://www.cnbc.com/2023/02/20/stock-markets-growth-stocks-look-hot-but-investors-should-be-wary.html
8. “U.S. Stocks Close Finish Lackluster Session Mostly Lower” RTTNews, 28 Feb. 2023, https://www.rttnews.com/3347249/u-s-stocks-close-finish-lackluster-session-mostly-lower.aspx
9. “Stocks Edge Higher, Nvidia, Moderna, eBay, Wells Fargo In Focus – Five Things To Know” jacksonprogress-argus, 23 Feb. 2023, https://www.jacksonprogress-argus.com/arena/stocks-edge-higher-nvidia-moderna-ebay-wells-fargo-in-focus—five-things-to/article_2193282a-3820-5763-9a15-98740fb980f6.html