Nasdaq futures hobbled by Tesla weakness




 

By Ankika Biswas

(Reuters) - The Nasdaq futures were pulled lower on Monday by a fall in Tesla shares after the electric vehicle-maker failed to meet quarterly delivery targets, although the other two main indexes were headed for a positive start to the quarter.

At 06:14 a.m. ET, Dow e-minis were up 100 points, or 0.35%, S&P 500 e-minis were up 5.5 points, or 0.15%, and Nasdaq 100 e-minis were down 24.5 points, or 0.22%.

Tesla Inc fell more than 4% in premarket trade, as logistical challenges overshadowed its record vehicle deliveries, which were announced on Sunday.

Weakness in Tesla spilled over to its other rate-sensitive peers including Apple Inc and Amazon.com, both of which were down 0.4% each.

All three major indexes ended a volatile third quarter lower on Friday as growing fears that the Federal Reserve's aggressive monetary policy will tip the economy into recession weighed on investor sentiment. [.N]

"Looking ahead, October brings earnings, with Q3 estimates already declining 7%, and the whisper numbers a bit more than that," said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.

"The larger concern (than the actual numbers for Q3, when consumers were still spending) is the guidance for Q4, as consumers have pulled back, inflation continues and the Fed's 'adjustments' will have a more substantial impact."

Further, global factory output mostly weakened in September as slowing demand added to the pain from persistent cost pressures and tighter monetary policy, diminishing economic recovery prospects.

The focus will be on ISM manufacturing index data for September at 10 a.m. ET, at a time when the world's largest economy is grappling with overshooting price pressures.

Credit Suisse trimmed its year-end 2022 target for by about 10% to 3,850 points, as corporate earnings take a hit from slowing economic growth.

It has also set a 2023 year-end price target for the benchmark index at 4,050 points, adding that 2023 would be a "year of weak, non-recessionary growth and falling inflation."

(Reporting by Ankika Biswas in Bengaluru; Editing by Anil D'Silva)

COMMENTS

More Related News

Battle of Billionaires: Musk, Zuckerberg Strive to Break Free from Tim Cook
Battle of Billionaires: Musk, Zuckerberg Strive to Break Free from Tim Cook's Shadow

Apple Inc CEO Tim Cook had an estimated wealth of $1.5 billion as of January this year. That made him the 2,083rd richest person in the world, far behind the...

Tesla cuts output plan for Shanghai plant for Dec -sources
Tesla cuts output plan for Shanghai plant for Dec -sources

SHANGHAI (Reuters) -Tesla plans to cut December output of the Model Y at its Shanghai plant by more than 20% from the previous month, two people with...

Taiwan export decline seen picking up pace in November: Reuters poll
Taiwan export decline seen picking up pace in November: Reuters poll

Taiwan, a global hub for chip production and a key supplier to Apple Inc, is one of Asia's leading exporters of technology goods. The export forecasts...

Musk Says Apple Has
Musk Says Apple Has 'Fully Resumed' Advertising On Twitter, This E-Commerce Giant Set To Follow Suit

Twitter CEO Elon Musk blasted Apple Inc (NASDAQ: AAPL) last week, saying it had mainly stopped advertising on Twitter and had threatened to withhold the...

Apple and Amazon resume advertising on Twitter - reports
Apple and Amazon resume advertising on Twitter - reports

The developments follow an email sent by Twitter on Thursday to advertising agencies offering advertisers incentives to increase their spending on the platform, an effort to jump-start its business after Elon Musk's takeover prompted many companies to pull back. Twitter billed the offer as the "biggest advertiser incentive ever on Twitter," according to the email reviewed by Reuters.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy