Dow Jones Industrial Average (^DJI)
- Yahoo Finance Video
Tesla robotaxis, dockworkers and automation: Asking for a Trend
On today's episode of Asking for a Trend, Host Josh Lipton breaks down some of the biggest stories and themes of the trading day. Tesla's (TSLA) highly anticipated robotaxi event is on Thursday, and Barron's associate editor Al Root points to five things investors are expecting from the highly anticipated event. First, there will be a physical unveiling of the robotaxi. Second, investors want to hear about safety data. Next, Tesla will likely touch on its business model, discussing everything from licensing to the size of its robotaxi fleet. The fourth point investors will be looking for is a launch date. Finally, Tesla could announce something extra. Root explains, "A lot of people think we'll see the lower price so-called Model 2 that's due in early 2025, maybe that will make an appearance. And maybe an update about the robot called Optimist." Stocks (^DJI, ^IXIC, ^GSPC) closed lower on Monday, retreating from Friday's gains that were fueled by September's better-than-expected jobs figures. Yahoo Finance senior markets reporter Josh Schafer analyzes the day's key market trends, focusing on the rise in 10-year Treasury yields (^TNX) and the noticeable slowdown in interest rate-sensitive stocks. The US dockworkers port strikes have temporarily paused, allowing for continued negotiations. University of Richmond's Robins School of Business professor Shital Thekdi notes that the core of the port strike dialogue centers on "efficiencies and the use of automation in ways that can replace workers." However, she emphasizes that other critical considerations are at play, including extreme events, "atypical working conditions," and "generally unsafe working conditions." "The potential is that AI and technology can actually help improve health and safety of workers, which is incredibly important," Thekdi tells Yahoo Finance. Is good economic news finally translating into good news for equities? Yahoo Finance anchor Julie Hyman breaks down Citi's Economic Surprise Index and how positive data — in the form of inflation readings and labor market figures — could be pulling stocks higher along with it. This post was written by Melanie Riehl
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Dow fall nearly 400 points, stocks tumble to start week lower
The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) both fell by nearly 1% in Monday's session — the latter tumbling 398 points to close the day in negative territory. The Nasdaq Composite (^IXIC) dropped by 1.18%, all of the indices starting the week lower following Friday's jobs data-fueled rally. Market Domination Overtime host Julie Hyman and Yahoo Finance markets and data editor Jared Blikre recap the day's market moves while taking into consideration forecasts around the Federal Reserve's future interest rate cuts. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Luke Carberry Mogan.
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Q3 earnings season is on deck. What investors can expect.
As the third quarter earnings season kicks off, Interactive Brokers chief strategist Steve Sosnick joins Morning Brief to discuss his expectations for growth. Sosnick believes that this earnings season will be "all about guidance." He explains, "It used to always be that if a stock beat its DPS (dividends per share) estimate, then that was a good reason to rally. That is no longer a sufficient condition — it's a necessary condition. You're not going to rally if you don't beat your published EPS (earnings per share). But in an era where 75-80% of companies beat their EPS estimates, does it really matter so much as all the other stuff?" Thus, guidance will be crucially important, as companies will give insight into whether or not the guidance priced into their stocks is "sufficient." While valuations have hit all-time highs, Sosnick draws an analogy to pole vaulting: "We keep raising the bar, which is fine as long as we keep clearing it. But if you raise the bar high enough, eventually, you won't clear it." He continues, "And that's why I focus on the guidance aspect of it, because it's really about, is the economy going to be suitable for a wide range of companies to maximize their earnings in a way that investors are pricing in?" While the "Magnificent Seven" have been driving earnings growth this year, Sosnick will be watching closely to see if they can continue to deliver, and whether the rest of the S&P 500 (^GSPC) players will be able to do the same. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Melanie Riehl
