:max_bytes(150000):strip_icc()/GettyImages-2050811541-a373362c398e427dbbe6e62211160bca.jpg)
Tesla Stock Jumps After EV Maker Raises Model Y Prices
58 minutes ago
Tesla (TSLA) was the best-performing stock in the S&P 500 Monday after the electric vehicle (EV) maker announced that it was raising the price of its most popular model, the Model Y.
The company posted on its website that the cost of the mid-size SUV would increase by $1,000 on April 1.
Tesla already boosted Model Y prices by $1,000 on March 1 on its real-wheel and long-range versions, putting them at their current base price of $43,990 and $48,990, respectively. Both qualify for the $7,500 EV federal tax credit.
Tesla has struggled as EV demand slumps and competition increases. Tesla shares were up 5.8% to $173 Monday afternoon but have lost about 30% of their value this year.
What Could This Week’s Fed and BOJ Meetings Mean For Stocks?
1 hr 38 min ago
The Federal Reserve and Bank of Japan (BOJ), two of the world’s most influential central banks, will both make monetary policy decisions this week, raising the prospect that stocks could get a policy-induced jolt or two.
Fed watchers will be scrutinizing the Federal Open Market Committee’s quarterly dot plots, which represent policymakers’ expectations for the U.S. economy and Fed policy. Meanwhile, some analysts are raising bets the BOJ will increase interest rates for the first time in 17 years when it concludes its March meeting tomorrow.
Both events will likely move markets. Though, as Morgan Stanley analysts pointed out in a note Monday, equity markets have been unusually indifferent to rising Treasury yields so far this year.
Equities rallied through the last three months of 2023 as Treasury yields tumbled and equity multiples increased. “Fast forward to this year,” the analysts wrote, “and the story has been much different. Bond yields have risen considerably since the beginning of the year as market participants have moved away from the long end and the Fed walked back several of the cuts that had been priced in for this year.”
And yet P/E multiples have remained elevated. “This informs us that, for now, equity investors appear to have moved past the Fed, inflation and rates,” they said, to focus on higher growth expectations.
This week’s Fed and BOJ decisions could put the equity and bond market’s divergence to the test. According to MS analysts: “The correlation of small cap performance versus interest rates remains meaningfully negative (-0.4),” meaning small caps are likely to be hit harder than large caps by a jump in yields. “Conversely, should rates decisively fall back below the 200-day moving average, it could serve as support for equity valuations to remain elevated.”
Logitech Shares Fall After CFO Resigns
2 hr 26 min ago
Logitech International (LOGI) shares fell Monday after the Swiss computer accessories maker said its chief financial officer (CFO), Charles Boynton, will be stepping down after just over a year in the role.
The company said Boyton is leaving “to pursue another career opportunity.” He will remain with Logitech as CFO through mid-May “to ensure a seamless transition for the end of the 2024 fiscal year,” the Swiss company said, adding it would name Boynton’s successor at a later date. Boynton has been in the role only since Feb. 2023.
Logitech shares were 7.7% lower at $87.39 late Monday morning but have gained about 64% over the past year.
Uber Settles Lawsuit With Australian Taxi Drivers for $178 Million
3 hr 2 min ago
Uber Technologies Inc. (UBER) reportedly will pay AUD$272 million ($178 million) to settle a class-action lawsuit brought by thousands of Australian taxi drivers, who allege they lost income when the ride-sharing company entered the country.
The Australian lawsuit, filed in 2019, was on behalf of more than 8,000 taxi and hire-car owners and drivers who lost income and license values when Uber moved into the Australian market, according to The Wall Street Journal, which cited the law firm representing the drivers.
Shares of Uber were down 1.5% at $74.97 Monday morning but have gained more than 20% so far this year.
Google Parent Alphabet Rises Following Reports of Gemini AI Licensing Talks With Apple
3 hr 54 min ago
Shares of Google parent Alphabet (GOOGL) surged in early trading Monday following reports it and Apple (AAPL) have had discussions about putting Google’s Gemini artificial intelligence (AI) products into future iPhone operating systems.
Licensing discussions between the tech giants are ongoing and Apple has also had similar discussions with ChatGPT maker OpenAI, Bloomberg reported.
While discussions are ongoing, Bloomberg reported that Apple might not make an announcement about its possible AI partner until its annual Worldwide Developers Conference (WWDC) in June.
Wedbush analysts said the development would be a “major win for Google” and that it could give Apple “the foundation and technology blueprint to double down on AI features.”
Alphabet shares were up 6.3% at $150 Monday morning, while Apple shares were 2.3% higher at $176.56.
Stocks Making the Biggest Moves Premarket
4 hr 35 min ago
Gains:
- Alphabet Inc. (GOOGL): Shares of the tech giant surged 5% following reports it was in talks to license its Gemini artificial intelligence model to iPhone maker Apple (AAPL). Apple shares rose more than 1%.
- Tesla Inc. (TSLA): Shares of the electric vehicle maker rose more than 4% after it said the price of its Model Y would go up by $1,000 in the U.S. in April.
- Nvidia Corp. (NVDA): Shares of the chipmaker gained more than 2% as investors awaited a keynote speech from CEO Jensen Huang to kick off its hotly-anticipated annual AI developer conference.
Losses:
- Science Applications International Corp. (SAIC): Shares of the IT services provider slid about 9% after its quarterly earnings fell slightly short of Wall Street estimates.
- Logitech International S.A. (LOGI): Shares of the computer technology maker slid more than 7% after it said chief financial officer Charles Boynton was leaving the company.
Stock Futures Rise as Tech Charges Higher
5 hr 27 min ago
Futures contracts connected to the Dow Jones Industrial Average were up 0.3% and rising sharply in premarket trading on Monday,
S&P 500 futures gained 0.8%.
Nasdaq 100 futures had advanced 1.3% about an hour before markets opened.
