This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on March 6, 2024.
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What you need to know today
More records
this S&P 500 Index Closed above 5,500 points for the first time Federal Reserve Chairman Jerome Powell said the central bank has made progress on inflation. S&P 500 Index and Technology Stocks Nasdaq Index It closed at a record high, with Tesla soaring 10% after sales fell less than expected. this Dow Jones Industrial Average An increase of 162 points. 10-Year Treasury Bond Yield Ministry of Finance Shares fell as Powell said the bank needed more time before cutting interest rates. US oil prices fall Recovering from two-month highs.
Tesla surges
TeslaShares of electric vehicle maker soar 10.2% Exceeds second-quarter production and delivery expectations. However, total deliveries still fell 4.8% year-on-year, despite growing 14.8% from the first quarter. The sales decline comes as Tesla faces increasing competition, especially in China, and an aging vehicle lineup. To stimulate sales, Tesla is offering various discounts and incentives, such as zero-interest loans to buy Model 3 and Model Y in China.
Inflation progress
Powell said the central bank had “Considerable progress“On inflation over the past year, but he said he’d like to see more before he’s confident enough to start cutting rates. “The last (inflation) reading and the readings before that to a lesser extent suggest that we’re recovering. Narrowing the passage,” Powell Said this at the Central Bank Forum in Sintra, Portugal. “We want to be more confident that inflation will continue to fall to 2% before we start to reduce or ease policy.”
Alzheimer’s drug approved
FDA approved Eli Lilly and Companyof Alzheimer’s drugs, donanemab, provides more treatment options for the nearly 7 million Americans living with the disease. Eli Lilly has encountered obstacles on its way to market. The FDA rejected the drug’s approval last year due to insufficient data, then surprisingly Delay March again. Donanemab will now be used with Biogen and Japanese partners EisaiLeqembi, was approved last year.
Paramount bid?
shares Paramount Worldwide Up 9% in after-hours trading News about potential transactions between Skydance by David Ellison and Paramount controlling shareholder National Entertainment Corporation. The tentative deal could give Skydance control of Paramount, marking a renaissance for the company Previous failed transactions. While specific terms are unclear, the previous deal involved a $2 billion payment to National Entertainment controlling shareholder Shari Redstone, a $4.5 billion payment to Paramount’s controlling shareholder, and a $1.5 billion cash payment to Paramount’s balance sheet.
(PRO) Conviction List
Goldman Sachs has updated its belief list for the second half of the year, adding three new stocks to its list of “Most Differentiated Fundamental Buy Ideas.” this The list includes 10 stocks Goldman Sachs research analysts believe this will outperform the market.
bottom line
Tesla’s gains this week come after the company’s shares have plunged 20% year to date, lagging large-cap stocks. Tesla shares surge on Tuesday Beating Wall Street’s delivery and production expectations. However, Doubts remain about the sustainability of the stock’s riseTesla’s product line ages and competition intensifies, forcing the electric car maker to offer deep discounts to attract customers, especially in China.
General Motors, on the other hand, offers some of the strongest products Quarterly data over three years.
Despite this positive sign, former Ford CEO Mark Fields believes the industry’s Growth will slow this year As prices normalize. He warned CNBC that if consumers further tighten their belts, there will be consequences for automakers and the economy:
“If consumers don’t actually take action, automakers are going to face a very important decision. They’re either going to have to offer more discounts to move these units to keep the factories running, or they’re going to have to make the hard decision to reduce production,” he said. Maybe fewer shifts, which would have a bigger impact on automakers and the economy.
“The household sector no longer has too much savings or too much debt capacity,” Allianz chief economic adviser Mohamed El-Erian told CNBC last week. He called for Fed considers rate cut in July.
Although Fed Chairman Powell said Central banks need more confidence Before cutting interest rates, Chicago Federal Reserve President Austen Goolsby Urging caution and tightening monetary policy As the economy weakens.
“I’m seeing some warning signs that the real economy is weakening,” Goolsby told CNBC’s Sarah Eisen in an interview. “It started at very hot levels and gradually weakened to levels that were still pretty strong. “But “If this restriction goes on for too long, you have to start thinking about the real side of the economy.”
Ronald Temple, chief strategist at Lazard, expects The Fed will cut interest rates three times By the end of the year – that’s beyond what the market is considering right now.
—CNBC’s Jeff Cox, Alex Harring, Michael Wayland, Lora Kolodny, Spencer Kimball, Pia Singh, Sarah Min, Annika Kim Constantino and Lillian Rizzo contributed to this report.
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