Tesla is gaining ground
Powell’s speech spooks investors
At the start of trading, the quarterly numbers from the big US companies still provide a reasonably good mood in the New York stock market. But that is not permanent. Fear of rising interest rates is causing indices to slide significantly into the red. Tesla may be able to convince investors, but analysts consider the stock overvalued.
A commitment by US Federal Reserve Chairman Jerome Powell to comparatively aggressive interest rate moves caused losses on Wall Street on Thursday. Powell announced at the spring meeting of the International Monetary Fund (IMF): “I would say that 50 basis points will be on the table for the May meeting.” After a fairly directionless trend up to that point, New York’s major indices closed in the red. Even strong business figures from companies like Tesla could only stem the slide. Of the dow jones it lost 1.1 percent to 34,793 points. the high tech nasdaq fell 2.1 percent to 13,175 jobs and the widest S&P 500 it lost 1.5 percent to 4,394 points.
Thanks to a quarterly result above market expectations Tesla at times almost twelve percent and finally closed with a plus of 3.2 percent. The electric-car maker weathers all the odds with flying colors, said analyst Craig Irwin at investment bank Roth. “However, stocks are shockingly overvalued given serious competition fast approaching. Tesla may be the king of the industry today, but future declines are only a matter of time.”
united airlines increased by 9.3 percent. The airline announced record sales and a profit for the current quarter. Analysts had previously expected a loss. The industry is at a turning point after pandemic-related losses in recent years, United boss Scott Kirby said. Investors also got involved with other airlines. delta Y American it gained as much as 3.8 percent.
photocopy fell 15.7 percent. Revenue was down and at the same time the company fell into the red. Xerox is suffering from the trend toward digitization, which has accelerated with the pandemic, wrote analyst Malik Ahmed Khan at research house Morningstar. Therefore, he assesses long-term business prospects pessimistically.
He went back down Netflix. Shares of the streaming pioneer fell 3.5 percent after plummeting about 35 percent in response to a surprise subscriber decline on Wednesday. Billionaire William Ackman’s hedge fund Pershing Square has reportedly dumped his 3.1 million shares in Netflix, suffering a $400 million loss in the process.