Wall Street: sales on the Nasdaq (-1.8%), Microsoft’s ambition weighs (-4%).  Today is Tesla Day: earnings and sales preview

Wall Street: sales on the Nasdaq (-1.8%), Microsoft’s ambition weighs (-4%). Today is Tesla Day: earnings and sales preview


Microsoft’s quarter crushes Wall Street. Around 3.35 pm Italian time, the Dow Jones fell by almost 240 points (-0.71%), the S&P 500 and the Nasdaq lost 1.20% and 1.80% respectively. Microsoft shares fall 4%.

But not only Microsoft: it is waiting for the publication of accounts by the giant electric car company Tesla managed by Elon Musk, attention is focused on the securities of other companies that, before the start of the session on Wall Street, published quarterly.

Boeing’s shares are facing a weak quarter, characterized by profits and sales that, in the fourth quarter, disappointed analysts’ estimates. The aerospace giant also inspired trends and problems that continue to affect supply chains, and which translate into delays in the delivery of critical components to the business world.

Also featured in this session were News Corp and Fox News, both of which emerged with the news that billionaire Rupert Murdoch has refused to continue the merger between the two companies due to shareholder opposition.

However, the attention of market operators is directed above all to the Microsoft stock, which leaves 2.6% lower.

The sentiment is weighed down by the giant’s quarterly report, published yesterday after the end of the trading day.

MSFT shares were previously burned to better-than-expected offers. Shortly after came the about-face, which is still ongoing, due to a not very comforting view given by Big Tech USA: a view that confirms the decline of the PC market and also in cloud services.

Microsoft announced that it ended its second fiscal quarter — the fourth quarter of 2022 ended December 31 — with net income falling to $16.43 billion, compared to $18.77 billion in the same period a year earlier.

The $1.2 billion charge was measured in Big Tech US’s quarterly report, which includes $800 million in liquidation costs the group had to incur for cutting 10,000 jobs.

Adjusted earnings per share came in at $2.32 per share, better than the $2.29 expected by analysts polled by Refinitiv.

Microsoft’s overall revenue rose 2% year over year, posting the slowest growth since 2016 at $52.75 billion, just shy of the $52.94 billion estimated by analysts.

The outlook for the third fiscal quarter of Microsoft, the first quarter of 2023, is not very convincing: the giant has announced that it expects revenue between $ 50.5 billion and $ 51.5 billion, which it expects to grow to 3%, however less than $ 52.43. billion of analysts’ consensus estimates.

So far, more than 70% of S&P 500 companies have reported earnings for the fourth quarter of 2022, with 65% beating expectations, according to Refinitiv analysis.

The futures trend follows a third straight period of gains for the Dow Jones.

All three major stock indexes are up at least 1% since the start of the week.

Today is Tesla Day, the day when, after the end of the session on Wall Street, the giant founded and led by CEO Elon Musk will release the financial results for the fourth quarter of 2022.

On January 2, the company released data on electric car sales for the last three months of 2022, which remained disappointing.

The subsequent announcement of further price cuts fueled fears that Big Tech was facing a slowdown in demand for its cars.

In the United States, the base version of Tesla’s Model 3 currently sells for $44,000, $3,000 less than it was paying in late November.

Investors with caution, after the fall of the TSLA name, in 2022, equal to -65%.

The start of the new year was encouraging for shares of the EV giant, which surged 17% YTD through yesterday’s session.

According to TheStreet.com, analysts expect Tesla to post adjusted EPS of $1.13 for the fourth quarter, up 33% year over year, on revenue of $24.03 billion, an increase equal to 35% year over year, which will prove the slowest sales growth of the Tesla car for more than two years.

Returning to the US stock market, yesterday the Dow Jones ended the session up to 104.40 points (+0.31%), at 33,733.96; The S&P 500 fell 0.07% to 4,016.95, while the Nasdaq Composite lost 0.27% to 11,334.27.

In the fixed income market, the 10-year Treasury yield fell to 3.447%, while the two-year yield fell to 4.141%.