Check back for updates throughout the trading day
U.S. equity futures nudged higher Thursday, while the dollar slipped against its global peers and Treasury yields steadied, as investors reacted to a key 2024 update from Tesla while looking to GDP and jobs data prior to the opening bell.
Stocks are holding onto last night’s slim gains, which lifted the S&P 500 to a fourth consecutive record close, even in the face of rising Treasury yields. Investors see firmer economic growth prospects but no further signal of Federal Reserve rate hikes.
Further evidence of that dynamic is likely to come from today’s GDP data, which are expected to show growth slowed over the final three months of the year but not enough to damage momentum heading into 2024.
Some confirmation of that thesis came yesterday from S&P Global’s January PMI readings of economic activity, which showed a big jump for the manufacturing sector and the highest overall tally for the composite index since June.
Benchmark 10-year-note yields, which hit a 2024 high of 4.18% following yesterday’s mixed auction of $61 billion in 5-year notes, eased to 4.155%. Two-year notes were pegged at 4.372%.
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.03% lower at $103.202.
Tesla confused investors with a lack of 2024 sales guidance following a set of muted fourth-quarter earnings.
On Wall Street, investors will likely track the fallout from Tesla’s (TSLA) – Get Free Report worse-than-expected fourth-quarter earnings report. The electric-car company’s numbers included a miss on both earnings and revenue as well as a warning that 2024 growth rates “may be notably lower than the growth rate achieved in 2023.”
Tesla shares were marked 7.8% lower and indicating an opening bell price of $191.55 each.
On the flip side, International Business Machines (IBM) – Get Free Report surged 7.4% after the cloud-focused software and consulting group, which is driving further into AI, topped Wall Street earnings estimates and forecast solid 2024 sales and cashflow.
Boeing (BA) – Get Free Report was also on the move, falling 2.9% after the Federal Aviation Administration said the planemaker had to halt production of its workhorse 737 Max in order to “ensure accountability and full compliance with required quality control procedures”
The move followed the blowout of a door panel on a Jan. 5 Alaska Airlines flight, which triggered safety concerns across the whole of Boeing’s production lines.
Paramount Global (PARA) – Get Free Report was another active stock, rising 3.3%. Reports said Skydance Media CEO David Ellison was looking to take control of the media group’s parent through a purchase of the Redstone family’s National Amusements holding company.
On Wall Street, futures contracts tied to the S&P 500 suggest an opening bell gain of 6 points for the benchmark, with the Dow slipping 5 points and the Nasdaq nudging 35 points higher.
Overseas, Europe’s Stoxx 600 was marked 0.33% lower ahead of the European Central Bank’s January rate decision later in the session, while Britain’s FTSE 100 slipped 0.15%.
Overnight in Asia, the regionwide MSCI ex-Japan benchmark rose 0.72% into the close of trading, while the Nikkei 225 ended 0.03% lower in Tokyo.