Tesla Stock and Nasdaq Tumble As Earnings Miss Again
U.S. stock markets, such as Nasdaq are experiencing a crumble today after disappointing earnings reports from major tech companies, Alphabet and Tesla, which led to increased volatility in the market. Tesla reported a decline in car sales for the second consecutive quarter in its financial results.
Tesla Stock Price Falls After Poor Earnings
This news led to a sharp drop in Tesla’s stock price, falling approximately 7% as sellers quickly responded to the negative news. Alphabet also faced challenges, with a notable shortfall in YouTube’s advertising revenue. The decline is attributed to increased competition from other platforms, such as TikTok, which has been gaining market share in the digital advertising space.
Nasdaq Tumbles Toward 19,000 Points
The US stock markets started the day higher on Tuesday after the Nasdaq bounced off the 50 daily SMA. The NASDAQ index led the gains. However, the bounce eventually stopped, and the Nasdaq closed the day with an upside-down pin, a bearish reversing signal, as traders withdrew ahead of significant multinational earnings. The tech sector’s earnings fell short of expectations when some of the results were disclosed, which caused stock markets around the world to decline.
The Nasdaq is experiencing its worst trading day since November 2, 2022, having dropped 600 points, or 3.35%. This marks the steepest decline for the index since it lost 3.40% on that previous date. The price is nearing a support zone of the upward movement from the April low, with this retracement level at 17,360 points. The current low price stands at 17,204 points.
US Treasury Auction
- Auction Overview: U.S. Treasury auctions $70 billion of 5-year notes.
- High Yield: The auction achieved a high yield of 4.121%.
- WI Level: When-issued level was 4.110% at the time of the auction.
- Tail: The auction had a tail of 1.1 basis points, compared to a six-month average of 0.5 basis points.
- Bid to Cover Ratio: The bid-to-cover ratio was 2.40X, slightly above the six-month average of 2.36X.
- Dealer Participation: Dealers took 13.97% of the notes, below the six-month average of 16.3%.
- Direct Investors: Domestic investors, known as directs, purchased 18.78% of the auction, above the six-month average of 17.9%.
- Indirect Investors: International investors, or indirects, accounted for 67.25% of the purchases, higher than the six-month average of 65.8%.
ABOUT THE AUTHOR
See More
Sidebar rates
Add 3442
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals