Cautious stocks, Tesla record, Bitcoin rally – 5 things to know


Here are five things you need to know for Tuesday, October 12:

1. – Futures stocks are higher with profits, inflation in focus

U.S. equity futures edged higher on Tuesday, although global markets maintained a cautious tone ahead of the start of the third-quarter earnings season with a focus on surging energy prices, the accelerating inflation and their combined effect on growth prospects in the world’s largest economies.

Investors were also troubled by news that indebted Chinese real estate giant Evergrande missed a third coupon payment in as many weeks, rekindling fears its collapse could trigger contagion in regional bond markets.

Beyond that, however, many of the same issues continue to challenge markets this week, with oil prices trading near seven-year highs amid the global electricity crisis, benchmark bond yields at 10 years is now at four-month highs ahead of a $ 38 billion auction. later this morning and JPMorgan’s earnings (JPM) – Get the JPMorgan Chase & Co. (JPM) report, Citigroup (VS) – Get the report from Citigroup Inc. and Goldman Sachs (SG) – Get the report from Goldman Sachs Group, Inc. (GS) the third quarter earnings season kicks off on Wednesday.

On Wall Street, futures contracts linked to the Dow Jones Industrial Average show an opening bell gain of 5 points, while the wider S&P 500 is valued for a 1 point move lower. Futures on the Nasdaq Composite, meanwhile, are expected to post a 25-point gain, with 10-year benchmark bond yields holding 1.615% in overnight trading ahead of the debt auction. ‘today.

2. – Evergrande misses bond payments

China Evergrande, the giant real estate developer at the center of a corporate debt crisis in the world’s second-largest economy, missed its third bond payment on Tuesday.

Evergrande, which has more than $ 300 billion in debt – with around $ 100 million in payments due by the end of the year – missed payments on three separate dollar bonds totaling $ 148 million, adding concerns that only a ‘clearance sale’ of its unfinished developments, or a bailout of the Chinese state, will keep it from going bankrupt in the weeks to come.

3. – Tesla takes another important step in China

You’re here (TSLA) – Get the Tesla Inc report shares rose on Tuesday after the automaker defied a sharp slowdown in China to post its best sales record in September in the world’s largest auto market.

Tesla sold 56,006 of its Chinese-made vehicles in this market last month, China Passenger Car Association data said on Tuesday, an increase of 27% from August and the highest total since the opening of its gigafactory in Shanghai in 2019.

The numbers contrast sharply with a nearly 20% drop in overall car sales in China, the fifth consecutive month of decline, as the country’s energy crisis and current semiconductor shortage persist in the industry.

Tesla shares were marked 0.57% higher in pre-market trading to indicate an opening bell price of $ 796.45 each.

4. – Bitcoin has a record in sight

Bitcoin prices edged down early in Tuesday’s session, but the world’s largest cryptocurrency remains within sight of its all-time highs in April amid a stellar fall performance in digital coin markets.

Bitcoin, in fact, rose more than 90% from its July low, even as Chinese regulators pledged to crack down on digital currency transactions and miners were hampered by an electricity crisis. in the world’s largest market.

In the United States, where the SEC is considering ways to consolidate bitcoin, along with other crypto assets, under a common regulatory umbrella, JPMorgan CEO Jamie Dimon added his thoughts on the need for oversight on Monday. evening, declaring to an Institute of International Finance that bitcoin is “worthless”.

“No matter what you think, the government is going to regulate it. They are going to regulate it for (anti-money laundering) purposes, for (banking secrecy law) purposes, for for tax purposes, ”he said.

Bitcoin was last marked 0.38% lower on the session at $ 57,300 each.

5. – Southwest sees a return to normal service

Southwest Airlines (LCV) – Get the report from Southwest Airlines Co. the actions extended the declines on Tuesday as the carrier pledged to return to normal service this week after a holiday weekend filled with more than 2,500 cancellations and a public dispute with its pilots union.

Southwest said a staff shortage, coupled with “air traffic control problems” and seasonal storms in Florida, contributed to a “large”, but not specific, number of flight cancellations over the course of the year. Columbus Day weekend. FlightAware, an online tracking service, puts the total at over 2,500.

The Federal Aviation Administration, however, said there had been no shortage of personnel on its side, while SWAPA, the airline’s pilots’ union, said its members “were not participating in any official action or unofficial “following reports that staff shortages were linked to recent immunization mandates.

Shares of Southwest Airlines, which fell 4.17% on Monday, fell 0.2% in pre-market trading to indicate an opening bell price of $ 51.56 each. .

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