Morning Bid: Trillion-dollar Tesla

Modern Land (China)

26/10/2021 08:02

LONDON, Oct 26 (Reuters) - A look at the day ahead from
Sujata Rao
    
Apple, Amazon, Microsoft, Alphabet... and Tesla. We now have a
trillion-dollar EV firm whose 10% surge on Monday lifted Wall
Street to new record highs --  electric vehicles going
mainstream is perhaps encouraging news ahead of the COP26
environment summit. 
    The news was less cheerful from Facebook which is contending
with whistleblowers and falling popularity among the young. But
a $50 billion buyback plan, unveiled after market close, may be
enough to lift the shares on Tuesday, especially if fellow tech
titans Google, Microsoft and Twitter also post upbeat figures. 
    All in all, the global equity index is inching back towards
the record highs hit early-September. U.S. stock futures
pointing north for Tuesday and Japanese markets added 1.8%. In
Europe, a surprise 9% profit boost at UBS -- its highest in six
years -- could see the pan-European banking index rally further
past April 2019 highs  .SX7P   urn:newsml:reuters.com:*:nL8N2RM0LG. 
    But the supply-chain snarl-ups, container traffic jams and
chip shortages bedevilling companies worldwide show no signs of
going away any time soon.
    Just take carmaker Hyundai, which missed profit estimates
and predicted that the chip shortages hampering output would
take a long time to fix. And French car parts maker Faurecia saw
Q3 sales drop 10% as semiconductor shortages forced its
customers to cut production  urn:newsml:reuters.com:*:nL1N2RM08C urn:newsml:reuters.com:*:nL8N2RM0US.
    Then there is the prospect of central bank policy
tightening, with the Bank of England looking set to join
rate-hike club next month. 
    It all adds up to slower economic growth and earnings, Citi
reckons. That could see buy-side analysts switching to net
"downgrade" mode on stock recommendations for the first time
since the pandemic first hit, it added. 
    And don't forget China, where another developer Modern Land
missed paying a bond due on Monday. Shanghai and Hong Kong
shares fell, despite gains for EV firms. 
      

Key developments that should provide more direction to markets
on Tuesday: 
-Philadelphia Fed Nonmanufacturing Business Outlook Survey
-U.S. monthly home prices Aug/consumer confidence Oct/new home
sales Sept
-U.S. 2-year note auction
-Europe earnings: Norsk Hydro posts record Q3  urn:newsml:reuters.com:*:nL1N2RM08K;
Reckitt Benckiser ups full-year f'cast after upbeat Q3
 urn:newsml:reuters.com:*:nL4N2RM1N9; Logitech sales rise on work-from-home boom
 urn:newsml:reuters.com:*:nL4N2RM0EG
- -U.S. earnings: 3M, Corning, Eli Lilly, General Electric,
Hasbro, Invesco, JetBlue, Lockheed Martin, S&P Global, United
Parcel Service, Xerox, Google, Microsoft, Texas Instruments,
Twitter, Visa

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Tesla    https://tmsnrt.rs/3nuhpBz
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 (Reporting by Sujata Rao; editing by Karin Strohecker)
 ((sujata.rao@thomsonreuters.com ; +44 207 542 6176/020 7536
7473/44 7990567646))