Four straight positive quarters for Tesla
The electric car giant Tesla yesterday announced its second-quarter results. Tesla saw its shares surging more than 4% in after-hours trading while Tesla surpassed analyst’s expectations and reached its fourth continuous quarter of profits. The company further published its first complete year of earnings on a GAAP data. That suggests that Tesla can now be considered to be part of the S&P 500 index.
In yesterday’s earnings call, the founder Elon Musk stated that the company will establish its next factory near Austin, Texas. Tesla intends to allow its Fremont, California car factory to solely produce its Model S and Model X vehicles for all markets, and further, it’s Model 3 and Model Y will be for the Western half of North America.
However Automotive income decreased by 4% year-over-year for Tesla from $5.38 billion to $5.18 billion, notwithstanding the company adding the new crossover SUV to its list, the Model Y, and opening a brand-new plant in Shanghai in 2019. As for the same time last year, the company’s shares were trading approximately at $260. At present, they’re exchanging at over $1,500, giving the company the title as the most valuable auto-maker in the U.S. by market capitalization.
During the period ending June 30, 2020, the company engaged with the consequences of the Covid-19 outbreak and general civil rights demonstrations, but still, the company produced the results that investors anticipated.
The company further delivered better-than-expected second-quarter vehicle production and performance numbers, sending Tesla’s stock price up. In July, the company’s shares have increased more than 50% so far.
Stocks futures steady for now
Futures contracts attached to the major U.S. stock indexes remained even through the late trading session while investors witness a fast drop of corporate earnings through an oppositely confident week.
Dow Jones Industrial Average futures dropped 3 points, indicating a limited chance for a decline when normal trading returns today. S&P 500 and Nasdaq-100 futures had limited improvement from the previous session.
Market’s center of attention was on after-hours trading yesterday evening as they were waiting for earnings announcements from various U.S. companies.
Oil prices went higher today
Oil prices went higher today. However, additions were limited by a shock jump in U.S. crude oil stocks while the coronavirus pandemic cracked fuel demand. Brent crude totaled 2 cents, to $44.31 a barrel while U.S. West Texas Intermediate (WTI) crude increased 6 cents, to $41.96 a barrel. Investors have been waiting for positive momentum after a week of exciting developments regarding a coronavirus vaccine.
Gold eased today
Gold fell today while investors maintained gains following a powerful rally. However, the popular yellow metal continued to be close to its nine-year top because of the escalation in U.S.-China tensions and the change for a more general stimulus to help economies damaged by the COVID-19 outbreak. That could stoke inflation.
Spot gold fell 0.2% at $1,867.36 per ounce after scoring its most powerful level since September 2011 at $1,876.16 in early trade.
The above content is considered to be market commentary information and shall not be perceived as independent investment research or investment advice.