Tesla Cybertruck Event and Other Earnings Reports Headline Early Stock Market Action
In early trading on Thursday, Dow Jones futures rose slightly, along with S&P 500 futures and Nasdaq futures. The upcoming Tesla Cybertruck event and an OPEC+ meeting before the open are expected to keep investors busy. Software makers, including Salesforce.com (CRM), had another busy night of earnings reports. Workday’s (WDAY) earnings buoyed a number of software plays, including CRM stock. Meanwhile, ahead of the open, Pure Storage (PSTG), Snowflake (SNOW), and Nutanix (NTNX) reported positive earnings. However, Pure Storage plunged, while CRM stock, SNOW stock, and Nutanix rose.
The pre-market action of Dow Jones futures indicated a 0.5% increase in anticipation of more earnings reports and the ongoing OPEC+ meeting. This increase is set to positively impact the stock market, with Treasury yields continuing to fall. Additionally, the PCE price index should cool to 3.1% from September’s 3.4%, which has led to raised expectations of inflation coming under control.
Wednesday’s stock market rally opened with strong gains, with the S&P 500 and Nasdaq getting close to their 2023 highs from July. Despite Tuesday’s solid opening, both major indexes closed slightly lower due to weakening megacap stocks. Despite the slight decline in the major indexes, the market rally still added to November’s big gains.
Further, despite the early morning rise in Treasury yields, the market rally is expected to face a possible pullback due to various sentiment gauges signaling excessive levels. Overall, lower bond yields may be supporting a tired stock market rally, and while Thursday’s stock market action isn’t great, it may still contribute to November’s gains.
Key earnings from Salesforce, Nutanix, Snowflake, Synopsys, and Pure Storage highlight the ongoing positive pre-market action, with Tesla’s Cybertruck event just around the corner. Thus, even with the potential for a pullback, various earnings reports and other events are poised to keep the stock market buoyant.
Finally, the highly anticipated Tesla Cybertruck event will provide potential clarity on several unknowns, including the handing over of vehicles to customers, the prices and specifications, and the production ramp-up timeline. Additionally, with Tesla stock likely to be affected following the event, investors should be prepared for potential opportunities in the stock market.
