Wall Street anticipates gains with Tesla and Jerome Powell in the spotlight

Wall Street anticipates gains with Tesla and Jerome Powell in the spotlight

The president of the Fed intervenes in the meeting of the International Monetary Fund
The president of the Fed intervenes in the meeting of the International Monetary Fund

Wall Street anticipates gains after the mixed close on Wednesday , caused by the historic collapse of Netflix after its results. Investors focus on more business accounts and Jerome Powell ‘s appearance on the sidelines of the IMF meeting.

The business protagonist of the day is Tesla , which rises 7% in pre-opening after having dropped 5% in the previous day. The electric car maker beat forecasts with its first-quarter figures , posting revenue of nearly $19 billion, with a gross margin of almost 33%.

On the rise in production costs, the company’s founder and CEO, Elon Musk , commented that ” the official figures actually underestimate the true magnitude of inflation ” and that “it is likely to remain high during 2022”. In this sense, his forecast is that costs will increase “significantly” when the supply contracts currently in force have to be renegotiated.

Other companies that will present their accounts during the day will be the telecommunications operator AT&T , the airline American Airlines and the Snap social network (the latter after closing).

INFLATIONIST PRESSURES

In relation to the inflationary pressures that worry the market and Elon Musk, the Fed’s Beige Book , which collects the evolution of the American economy in the main regions of the country, confirmed this Wednesday that inflationary pressures continue to be high and that companies they continue to pass on rising costs to consumers. Also, the document confirmed that the US economy is growing at a “moderate” pace since mid-February .

Thus, the main reference for investors will be the intervention of Jerome Powell , president of the Federal Reserve (Fed), in a debate on the global economy, within the framework of the meeting held by the International Monetary Fund (IMF) in New York .

We recall that the agency cut its growth forecast for the American economy to 3.7% in 2022 and to 2.3% in 2023, compared to its previous estimate of 4% and 2.6%.

In the economic scene, weekly unemployment data and the Philadelphia Fed manufacturing index will be published.

RUSSIA CONTINUES ATTACKING THE DONBÁS

On the war front, Russia is continuing its major offensive on eastern Ukraine to gain control of Donbas and has said that it already controls Mariupol. Despite the terrible attack launched by the Kremlin, both parties continue negotiating, although no agreement is expected in the short term, until Putin can claim any notable strategic victory.

For its part, the US has approved more military aid for Ukraine, while China remains in profile and has opposed unilateral sanctions against Moscow. At the same time, the European Union is working to impose sanctions on Russian oil.

In other markets, the barrel of West Texas crude rose 1% ($103.20) and the Brent barrel advanced 1.2% ($108.10), while the euro appreciated % (1.085). Also, the ounce of gold % ($1,959). Lastly, bitcoin h% ($41,225); and the return on the 10-year US bond.

Samuel Edwards
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