Before the bell: make way, make way, step aside for the results!

Make way, make way, step aside for the results! Everyone in Tesla’s self-driving taxi?

Inflation in the U.S. fell to 2.4% last month, the lowest level in three years, but slightly higher than the expected 2.3%. In August, the average annual increase was 2.5%, and in July, it was as high as 2.9%. This is a slight disappointment for the markets, which had reacted positively last week to a better-than-expected jobs report. Investors are beginning to wonder if they haven’t been expecting rate cuts too quickly. The rising oil price, up by over 3%, didn’t help either. Both European and U.S. markets ended with losses of only a few tenths of a percent. Now the focus shifts to corporate earnings. Today marks the start of the quarterly earnings season once again. Companies that have reported results in recent weeks typically have a fiscal year that doesn’t align with the calendar year. However, U.S. bank JP Morgan has a “regular” fiscal year and is reporting today for the period from July to September. The fact that such a large bank can report so quickly shows that JP Morgan has its affairs in order—which is essential for a bank, as banking originated from accounting. Competitors Wells Fargo and asset management giant BlackRock are also reporting earnings. The expected earnings growth for S&P 500 companies stands at a modest 4%, compared to 11% in the second quarter. Those that perform worse may take a hit, while those that positively surprise will see their stock prices rise, like Fagron (+3.6%), which was rewarded for strong results and a reaffirmation of its annual forecast, despite earlier doubts.

In Asia, the Hang Seng Index is closed today. The Chinese are celebrating the Double Ninth Festival, a traditional holiday that falls on the ninth day of the ninth month of the Chinese calendar. This year, the holiday falls on October 11. In Japan, the Topix index is treading water.

All aboard the taxi

This morning at 4:00 a.m. Belgian time, Elon Musk unveiled Tesla’s robotaxi. The event took place at the iconic Warner Bros. Studios in Hollywood. Both fans and critics were eager for the unveiling, as part of Tesla’s $750 billion market value is based on the assumption that Tesla will eventually dominate the self-driving vehicle market. Some analysts believe this will revolutionize the automotive industry. Instead of owning a car, we will use much more efficient robotaxis, which we can simply summon whenever we need to travel. Musk promised that these cars would be on our streets by 2027, with a price tag of less than $30,000. Whether the presentation of the Tesla CyberCab was convincing will become evident today, as we watch Tesla’s stock price.

Fireworks in Brussels

It was a calm week on the stock market, except for a bit of spectacle in Brussels. Avantium, which develops plant-based plastic, surged by 35% this week. The company not only received FDA approval for the use of its plastic in food products in the U.S., but it also announced the inauguration of its factory in the Netherlands. Additionally, Avantium boasted yesterday about a supply contract with the U.S. company Plastipak, whose name is not exactly original. However, since it is a conditional supply agreement, the stock couldn’t hold onto its early 10% gain and ultimately closed 1.3% lower.

Did you know…

that the new government of Portugal plans to significantly reduce taxes for young people up to the age of 35? The goal is to stop and even reverse the exodus of 850,000 young people who have already left the country for abroad.

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