Before the bell: Chinese cars still in demand

In the United States, the Dow Jones posted solid gains while the other indices declined. Later today, Tesla will report its delivery figures.

When the Dow Jones gains 0.9%, while the Nasdaq drops 0.8% and the S&P 500 slips 0.1%, there’s usually one stock responsible: UnitedHealth Group (+4.5%). The stock carries heavy weight in the old index, not because of its market value, which is “only” 283 billion dollar, but because its share price was still 600 dollar in April. Only Goldman Sachs, then priced at 500 dollar, came close. Since then, UnitedHealth’s price fell sharply, and even after yesterday’s rise, the stock is still trading at 326 dollar—low enough for bargain hunters to jump in. Biotech company Amgen (+4.1%) also had a strong day. Solar energy stocks rose for the second day in a row, with Sunrun up 10.5% and SolarEdge gaining 7.2%. In Europe, the Euro Stoxx 50 declined 0.4%, and Frankfurt’s exchange saw a loss of 1%. In Brussels, the Bel20 gained 0.5%, thanks to Umicore, which surged 11.8% after raising its full-year forecast. Sofina fell 3.4% after Degroof Petercam cut its price target from 309 euro to 284 euro. Last week, the holding company’s shares had still risen 9.5%.

In Japan, markets are flat this morning, showing neither gains nor losses. Hong Kong (+0.6%) reopened after a holiday, with investors returning in a buying mood. Today, we’ll see unemployment data from the eurozone, and in the U.S., job market numbers will also be released. Yesterday, it turned out that the number of job openings in May reached 7.77 million—surprisingly high. Investors are watching closely for Tesla’s (-5.3%) delivery figures. The company is expected to have delivered around 390,000 vehicles in the past quarter—a 12% drop year-on-year, but 16% more than the previous quarter.

Breakthrough for electric vehicles?

We’re still waiting for Tesla’s figures, but their Chinese competitors have already reported June deliveries. BYD sold 382,585 vehicles, its best monthly result so far this year. Interestingly, it’s now mainly fully electric cars that are driving growth, with a 44% increase. In contrast, sales of BYD’s hybrid models fell 12%. Xpeng delivered 34,611 vehicles last month, up 224% compared to June last year. In the first half of the year, Xpeng sold 197,000 cars, more than in all of 2024 (190,000). Nio delivered to 24,925 customers, and Xiaomi sold over 25,000 cars. However, the latter is facing complaints from customers waiting over a year for their vehicle. Can Chinese automakers continue posting such impressive numbers? Probably not. Reports suggest that BYD’s night shifts are being sent home, hinting at slowing momentum. Still, the current figures are undeniably strong.

A half-empty glass

Constellation Brands rose 2.3% during the day, but after the close, the American brewer reported disappointing results. Quarterly revenue came in at 2.52 billion dollar, about 6% lower than the 2.66 billion dollar reported in the same quarter last year. Analysts were expecting a decline, but still forecast 2.55 billion dollar. Adjusted earnings per share dropped from 3.57 dollar to 3.22 dollar, below the consensus of 3.31 dollar. A bright spot is that its Mexican beer brands, Corona and Modelo, gained market share. What will Warren Buffett do today? Will he buy more shares at the lower price? Back in December, a share cost 240 dollar—yesterday, it was 166 dollar. Or will he regret not going for AB InBev instead of Constellation?

Did you know…

that in June, Chinese automaker BYD sold an average of 12,753 new vehicles per day?

This article was translated from Dutch and was originally published on Spaarvarkens.be.