Tesla stock on a rampage, Elon Musk’s predicts strong vehicle growth

Posted on October 24, 2024 by Olumide Adesina

Tesla’s third-quarter profits on Wednesday were impressive, despite revenue coming in slightly shy of expectations. The stock price increased by 12% during extended trading. The stock was down 18% in October before yesterday’s rally, headed for its worst month since January. Over the year, the Nasdaq gained 22%, while the shares plummeted 14%.

An LSEG survey of analysts found the following differences between Wall Street’s expectations and the company’s report: Revenue was $25.18 billion instead of the expected $25.37 billion.
Revenue climbed 8% to $23.35 billion from $1.85 billion, or 53 cents per share, in the same period last year. Net income increased to almost $2.17 billion, or 62 cents per share.

During the quarter, $739 million in automobile regulatory credit revenue helped to boost profit margins.

Automotive revenue increased 2% to $20 billion from $19.63 billion in the same month the previous year, and it has been comparatively steady since late 2022. Energy generation and storage revenue jumped 52% to $2.38 billion, while services and other revenue from non-warranty repairs of Tesla vehicles—rose 29% to $2.79 billion.

Elon Musk, the CEO, stated on the earnings call that he believes the “advent of autonomy” and “lower cost vehicles” will cause “vehicle growth” to reach 20% to 30% in the upcoming year. According to a FactSet survey of analysts, deliveries were predicted to rise by around 15% to 2.04 million next year.

Musk stated that all of Tesla’s vehicles going forward would be autonomous when asked on the call if the business would produce a less expensive EV that isn’t a Cybercab. According to him, the “vast majority” of the 7 million cars that Tesla has made so far are “capable of autonomy,” and the business is “currently making on the order of 35,000 autonomous vehicles a week.”

Tesla still does not manufacture or market safe vehicles without a human driver constantly present to steer or brake. Musk said that the company would eventually produce two million Cybercabs annually and begin delivering driverless ride-hailing cars in Texas and perhaps California as early as 2025.

According to him, certain Californian employees have been able to utilize a ride-hailing app that Tesla built this year. Even though the previous president opposes federal expenditure on EVs, charging infrastructure, and environmental laws that have helped Tesla for years, Musk has spent tens of millions to help Trump return to the White House.

Bitcoin Bullish Breakout Valid Despite Drop: Will BTC Reclaim $70,000?

Posted on October 24, 2024 by Dalmas Ngetich

Bitcoin ended up trading lower yesterday. After the consolidation of October 22, prices fell, confirming losses of early this week. From the daily chart, sellers have the upper hand. This overview will remain until there is a satisfying recovery, lifting sentiment and prices from this week’s pits. Technically, a close above $66,000 by the end of the day would catalyze demand, but what’s truly needed is a leg up above $70,000. If this is the case, spurred by supportive fundamentals, Bitcoin can easily float to as high as $74,000 in a buy trend continuation formation.

The path of least resistance swings in favor of determined sellers, at least in the short term. Although some expect prices to rally, there is stiff resistance. In the past day, the world’s most valuable coin remained stable amid expanding trading volume, which stood at over $34 billion.

Traders are watching the following trending Bitcoin news:

The market remains uncertain ahead of the United States General Election. A Donald Trump win, one analyst said, could see BTC rally– even breaking all-time highs.
Despite the sell-off, Bitcoin is within a bullish breakout formation. Looking at the daily chart, the drop could turn out to be a retest. If prices find support from around August and September highs, bulls will likely push back toward $70,000.

Bitcoin Price Analysis

[[BTC/USD]] is under pressure, looking at price action in the daily chart.

Prices are cooling off after the strong leg up in the second half of September.

Even as prices drop, the uptrend remains. If anything, the coin is within a bullish breakout formation after the close above August highs.

If Bitcoin finds support at $66,000, prices can steadily recover, soaring to over $70,000 and all-time highs.

If not, sustained losses could push the world’s most valuable coin back to October lows of around $60,000.

XRP Faces Crossroads as Regulatory Battle Intensifies and Markets Show Mixed Signals

Posted on October 24, 2024 by Arslan Butt

In a candid admission at DC Fintech Week, Ripple CEO Brad Garlinghouse acknowledged the company’s delayed engagement with U.S. regulators, highlighting the complex relationship between cryptocurrency firms and regulatory authorities. As XRP trades at $0.53, the market watches closely how regulatory developments and technical indicators might shape its future trajectory.

Regulatory Landscape and Corporate Strategy

Ripple’s regulatory challenges continue to evolve as the company navigates its legal battle with the SEC. Garlinghouse’s recent comments about making “more trips to DC” underscore a shifting strategy toward proactive regulatory engagement. The company has notably increased its political presence, with nearly $50 million in donations to the pro-crypto FairShake PAC this election cycle.

The SEC’s partial victory in its case against Ripple – finding XRP sales to institutional investors constituted unregistered securities – remains a significant market factor. However, the ruling that retail sales on exchanges weren’t securities offers a silver lining that the company is leveraging in its ongoing legal strategy.

XRP/USD Technical Analysis: Mixed Signals Amid Volatility

The technical outlook for XRP presents a complex picture:

Bearish Indicators:

Trading below both 50-day and 200-day EMAs
RSI at 39.76, suggesting bearish momentum but not yet oversold
Immediate resistance at $0.5350
Support level testing at $0.5120

Key Price Levels to Watch:

Critical support: $0.5000 (psychological level)
Major resistance: $0.5550
Secondary resistance: $0.5778 (upper FVG boundary)
Downside risk zone: $0.4780 (lower FVG boundary)

Market Catalysts and Future Outlook

Several key events could significantly impact XRP’s price action in the coming months:

SEC Appeal Process: The agency’s opening brief, due by December 2, 2024, could trigger substantial market movements
U.S. Presidential Election: November 5 outcome may influence regulatory leadership and policy
Federal Reserve Decision: November 7 rate decision could affect broader crypto market sentiment
Institutional Interest: Growing ETF speculation after Bitwise and Canary Capital’s spot XRP ETF filings

Short-term Trading Implications

Traders should watch for:

Break above $0.5350 could signal short-term bullish momentum
Failure to hold $0.5200 might trigger a decline toward $0.5120
Volume patterns suggest increased institutional interest despite regulatory uncertainty

Long-term Considerations

The market appears to be at a crucial juncture, with several factors potentially influencing long-term price action:

Regulatory clarity post-SEC appeal
Institutional adoption through potential ETF approval
Global expansion of Ripple’s payment networks
Overall crypto market sentiment and correlation with traditional markets

Expert Analysis

Market analysts suggest that while short-term volatility remains likely, XRP’s fundamental value proposition in cross-border payments continues to strengthen. The upcoming SEC appeal process and potential ETF developments could provide clearer direction for both retail and institutional investors.

Risk Factors

Investors should consider:

Ongoing regulatory uncertainty
Market correlation with broader crypto assets
Political landscape changes affecting crypto regulation
Global economic conditions impacting risk asset demand

UK Pay Growth Stalled In September, Likely To Slow Next Year: Survey

Posted on October 24, 2024 by RTT Staff Writer

Growth in the employee earnings in the U.K. stalled in the September quarter and the rate of increase is expected to fall next year as employers weigh the cost, the performance of their companies and possibly lower inflationary pressures.

Median pay award forecast for the next 12 months was 3 percent, nearly two percentage points lower than the median pay award of 4.7 percent for the 12 months ending August 2024, results of a survey by the HR data and insights provider Brightmine, formerly XpertHR, showed Wednesday. The forecast was also 50 percent lower than in the same period in 2023.

“With economic pressures mounting, we’re seeing organizations re-evaluate their pay strategies, and many are shifting their focus toward enhancing employee benefits as a way to balance employee expectations with the needs of the business,” Sheila Atwood, senior content manager at Brightmine, said.

“While pay awards are expected to decline in 2025, businesses are continuing to find creative ways to support their workforce, particularly by addressing skills shortages and retaining key talent.”

Latest official data showed that UK wage growth softened to the lowest in more than two years in the three months to August, adding support to expectations that the Bank of England will cut interest rates further at the November policy session over concerns about a slowing economy and a cooling labor market.

The survey showed that businesses reported affordability, organization performance and inflation/cost of living as the three factors that are most likely to negatively influence pay award decisions in the next 12 months.

Meanwhile, skills shortages and matching pay levels with their industry were the two factors most likely to boost pay awards next year for half of businesses.

The monthly Brightmine Pay Trends report, based on a survey of 64 pay settlements between July 1 and September 30 covering 433,000 employees, showed that September saw pay rises remained flat at 4 percent for the third consecutive rolling quarter. That compared to the 4.8 percent pay award in the June quarter.

Pay settlements in the public sector over the 12 months to the end of September was a median 5.5 percent, unchanged from the previous rolling year to the end of August. This follows a full 12 months when pay awards in the sector were in excess of 6 percent, the report said.

However, employers plan to raise the pay for most employees next year, while about 4 percent of businesses are planning wage freezes.

Stay ahead of the market with RTTNews Economic Calendar – track key events that move the financial world.

Ethereum Faces Mounting Pressure as Price Dips Below $2,600 Amid Network Concerns

Posted on October 24, 2024 by Arslan Butt

Ethereum (ETH) is experiencing significant downward pressure, trading at $2,556 as of the latest market data, marking a 2.3% decline over the past 24 hours. The second-largest cryptocurrency by market capitalization has seen a concerning 9% drop over the past three days, with technical indicators suggesting potential further downside.

Market Dynamics and Liquidations

The recent price action has triggered substantial liquidations across the cryptocurrency market, with Ethereum bearing the brunt of the selling pressure. Data from CoinGlass reveals that over $24 million in ETH leverage positions have been liquidated, with long positions accounting for $23.2 million of the total. This cascade of liquidations has contributed to the overall crypto market experiencing $122 million in position closures.

ETH/BTC Ratio Hits Critical Low

A particularly concerning development is Ethereum’s performance against Bitcoin. The ETH/BTC ratio has plummeted to 0.03856, marking a 42-month low not seen since April 2021. This represents a substantial 31.5% decline from recent highs, highlighting a clear preference among investors for Bitcoin over Ethereum in the current market environment.

ETH/USD Technical Analysis and Resistance Levels

The price action shows significant resistance around the $2,800 level, with Ethereum facing rejection after reaching $2,768. Market intelligence firm CryptoQuant has identified a potential “short-squeeze risk” due to increasing leverage ratios, suggesting that the futures market may be overheated.

Key technical levels include:

Immediate resistance: $2,550-$2,600
Critical resistance zone: $2,675 (100-day SMA)
Support level: $2,450
Major support: $2,420

Ethereum Network Fundamentals and Competition

Ethereum’s challenges extend beyond price action to network fundamentals. The network is grappling with:

Average transaction fees of $4, pushing activity to competing chains
A 13% decline in DEX volumes over the past week
A 5% reduction in Total Value Locked (TVL) over the past month
Net withdrawal of 191,000 ETH from staking (approximately $492 million)

Competing networks, particularly Solana, have seen increased activity, with Solana’s DEX volume surpassing Ethereum’s by 67% over the past week.

Future Outlook

The upcoming Prague-Electra upgrade, initially planned for Q1 2025, aims to address scalability issues through improvements like Verkle trees and EIP-7251. However, uncertainty around implementation timelines and effectiveness in addressing network congestion continues to weigh on investor sentiment.

Technical indicators suggest caution, with the MACD showing some bullish momentum while the RSI hovers near the 50 zone. The path to recovery would require clearing significant resistance levels at $2,550 and $2,600, while failure to maintain current support could see prices testing the $2,450 level.

Federal Agencies Seize $76 Mln Worth Illegal E-Cigarettes

Posted on October 24, 2024 by RTT Staff Writer

Around three million units of unauthorized e-cigarette products, with an estimated retail value of $76 million, have been seized by the U.S Federal agencies in their efforts to curb nicotine addiction and tobacco use in American youth.

The U.S. Food and Drug Administration as well as the U.S. Customs and Border Protection or CBP announced the administrative seizure as part of a July joint operation to examine incoming shipments and prevent illegal e-cigarettes from entering the country.

Amid the increasing nicotine addiction among American youth, the U.S. Department of Justice and the FDA, joined by multiple law enforcement partners, in June had formed a federal multi-agency task force to combat the illegal distribution and sale of e-cigarettes in the country. The Federal Task Force intends to coordinate and streamline efforts to bring all available criminal and civil tools to bear against the illegal distribution and sale of e-cigarettes.

The agency now said it is collaborating with Federal Task Force to accelerate further enforcement actions to stop the illegal importation and distribution of unauthorized e-cigarette products in the United States.

The news comes as a newly released data from the 2024 National Youth Tobacco Survey indicated that tobacco product use among U.S. middle and high school students has dropped to the lowest level in 25 years.

Further, data from the National Youth Tobacco Survey released in September by the FDA and the U.S. Centers for Disease Control and Prevention, the consumption of e-cigarette among American youth has dropped to the lowest level in a decade. Half a million fewer U.S. youth are currently using e-cigarettes compared to 2023.

FDA Commissioner Robert Califf now said, “The FDA is on high alert and, in coordination with our federal partners, remains committed to stopping unauthorized e-cigarettes at our nation’s borders. These products too often end up in kids’ hands, and the newly formed federal task force is well positioned to collectively combat this unscrupulous activity.”

In preparation for the operation, the joint team worked for several months to review shipping invoices, identify potentially violative incoming shipments and complete other investigative work, leading to the seizure.

As per the probe, all examined shipments were originated in China, and there were various brands of illegal e-cigarettes, including Geek Bar and others. Most of these unauthorized e-cigarettes were intentionally mis-declared as items with no connection to vaping products and with incorrect values, so as to evade duties and detection.

The FDA said the products that are seized and forfeited to the government will be disposed of in accordance with CBP authorities.

Decline In U.S. Mortgage Applications Slows: MBA

Posted on October 24, 2024 by RTT Staff Writer

The number of mortgage applications in the U.S. fell for the third week in a row, but at a slower pace in the week ended October 18, as higher interest rates continue to weigh on demand, results of a survey by the Mortgage Bankers Association showed Wednesday.

The Market Composite Index, a measure of mortgage loan application volume, fell 6.7 percent from the previous week when it slumped 17 percent.

The average contract interest rate for 30-year fixed-rate mortgages was steady at 6.52 percent.

The purchase index fell 5 percent to 131.4 from 138.4 from the previous week and the refinance index plunged 8 percent to 672.6 from 734.6, the MBA survey showed.

“Application activity decreased to its lowest level since July, as both purchase and refinance applications saw declines,” Joel Kan, MBA’s vice president and deputy chief economist, said.

“Purchase applications continued to run stronger than last year’s pace for the fifth consecutive week.”

Kan said some homebuyers are still in the market as rates, which are on a recent upswing, are over a full percentage point lower than a year ago.

“For-sale inventory has started to loosen, and home-price growth has eased in some markets, providing more options for buyers in combination with these lower rates,” Kan added.

The weekly MBA survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels and respondents include mortgage bankers, commercial banks, thrifts, and credit unions.

Bank Of Canada Slashes Interest Rates By 50 Basis Points

Posted on October 24, 2024 by RTT Staff Writer

Following three straight quarter point interest rate cuts, the Bank of Canada on Wednesday announced its widely expected decision to slash rates by a half point.

The Bank of Canada said it decided to reduce its target for the overnight rate by 50 basis points to 3.75 percent, with the Bank Rate at 4 percent and the deposit rate at 3.75 percent.

The Canadian central bank’s decision to continue lowering rates came as consumer price inflation has declined significantly from 2.7 percent in June to 1.6 percent in September.

“With inflation now back around the 2% target, Governing Council decided to reduce the policy rate by 50 basis points to support economic growth and keep inflation close to the middle of the 1% to 3% range,” the bank said its statement.

The Bank of Canada also said it expects to further reduce rates if the economy evolves broadly in line with its forecast but noted the timing and pace of future rate cuts will be guided by incoming information and its implications for the inflation outlook

“We will take decisions one meeting at a time,” Bank of Canada said, stressing that it is committed to maintaining price stability for Canadians by keeping inflation close to the 2 percent target.

U.S. Existing Home Sales Unexpectedly Slump By 1.0% In September

Posted on October 24, 2024 by RTT Staff Writer

A report released by the National Association of Realtors on Wednesday unexpectedly showed a continued decrease by existing home sales in the U.S. in the month of September.

NAR said existing home sales slid by 1.0 percent to an annual rate of 3.84 million in September after tumbling by 2.0 percent to a revised rate of 3.88 million in August.

Economists had expected existing home sales to increase by 1.0 percent to a rate of 3.90 million from the 3.86 million originally reported for the previous month.

“Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing,” said NAR Chief Economist Lawrence Yun.

“There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy,” he added. “Perhaps, some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election.”

The report also said housing inventory at the end of September totaled 1.39 million units, up 1.5 percent from 1.37 million units in August and up 23.0 percent from 1.13 million units a year ago.

The unsold inventory represents 4.3 months of supply at the current sales pace, up from 4.2 months in August and 3.4 months in September 2023.

“More inventory is certainly good news for home buyers as it gives consumers more properties to view before making a decision,” Yun said. “However, the inventory of distressed properties is minimal because the mortgage delinquency rate remains very low.”

NAR also said the median existing home price was $404,500 in September, down 2.3 percent from $414,200 in August but up 3.0 percent from $392,700 a year ago.

On Thursday, the Commerce Department is scheduled to release its report on new home sales in the month of September.

Economists currently expect new home sales to rise to an annual rate of 720,000 in September after plunging to a rate of 716,000 in August.

Gold Retraces from All-Time High Amid U.S. Election Uncertainty, Eyes $3,000

Posted on October 24, 2024 by Arslan Butt

Gold (XAU/USD) fell back after breaking the trend line and fell to $2,708 but has since bounced back to $2,727.12. Previously, gold surged to a record high as US election uncertainty and Middle East troubles mount.

Investors are flocking to gold as a hedge against economic chaos and it’s never been higher. Up 32% this year as safe haven demand grows as political and economic risks rise.

Continue reading “Gold Retraces from All-Time High Amid U.S. Election Uncertainty, Eyes $3,000” →