SUPERNEWS

Macro

S&P 500 Ends Losing Streak, Tesla at 15-Mo Low, Copper Soars

S&P 500 poised to end losing streak amid earnings optimism, Tesla hits 15-month low, commodities and manufacturing data show mixed economic signals.

By Mackenzie Crow

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4/18, 13:34 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
Alaska Air Group, Inc.
Ally Financial Inc.
Blackstone Inc.
Genuine Parts Company
iShares Russell 2000 ETF
KeyCorp
SPDR S&P 500 ETF TRUST
Tesla, Inc.
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Key Takeaway

  • S&P 500 aims to end a four-day losing streak, buoyed by positive corporate earnings and a surprising Philadelphia Fed Manufacturing Index jump.
  • Tesla Inc. hits 15-month lows, while Bitcoin rebounds sharply, highlighting divergent trends in tech stocks and cryptocurrencies.
  • Strong gains in commodities with copper at a 22-month high and notable stock movements post-earnings underscore market volatility.

Market Rally Amid Earnings Season

The S&P 500 index is on the verge of breaking a four-day losing streak, buoyed by a broad market rally as investors digest a fresh batch of corporate earnings. Midday trading saw all major indices, including the iShares Russell 2000 ETF for small caps and the U.S. Global Jets ETF for airline stocks, posting gains. The SPDR S&P 500 ETF Trust and the Communication Services Select Sector SPDR Fund also experienced upward movements, reflecting a positive market sentiment.

Notable earnings reactions include Discovery Financial Services and Capital One Company, both showing significant increases ahead of their earnings releases. Other stocks such as Genuine Parts Company, Alaska Air Group, and Ally Financial Inc. saw substantial gains, while Blackstone Inc. and KeyCorp faced declines. Tesla Inc., however, faced a notable downturn, with its stock down 37% this year, attributed to demand issues.

Economic Indicators and Commodities Rebound

The Philadelphia Fed Manufacturing Index surprised to the upside with a reading of 15.5, far exceeding expectations and signaling robust manufacturing activity. Conversely, existing home sales underperformed, declining 4.3% year over year, indicating potential headwinds in the housing market.

Commodities saw a notable rebound, with copper prices hitting a 22-month high and gold prices increasing by 1%. Natural gas prices also surged due to slower inventory builds, highlighting a recovery in commodity markets. This rebound in commodities, alongside positive manufacturing data, provides a mixed view of the economic landscape.

Tesla's Challenges and Market Expectations

Tesla's stock decline has been a focal point, with the company missing its growth target and facing a potential negative free cash flow quarter for the first time since Q1 2020. The upcoming earnings report on April 23 is critical for investor confidence, with a focus on cost-cutting measures, the development of Model 2, and robotaxi plans. Wall Street's expectations are mixed, with some analysts bearish due to demand issues, while others remain bullish, emphasizing the importance of Tesla's future strategy.