Tesla shares fell as the electric vehicle maker missed estimates on price cutting that ate into profit margins and investors will look to remarks from Fed Chair Jerome Powell for insight into coming decisions on interest rates. Here’s what investors need to know today.
1. Tesla Shares Fall as Price Cutting, Competition Eats Into Profit Margins
Shares of Tesla (TSLA) plunged more than 5% in pre-market trading after the electric vehicle maker missed analyst estimates for its third-quarter results, as price slashing and EV competition helped press gross profits margins down to 16.3%, lower than the 17.5% that analysts had forecast and the 27% gross profits from the same quarter in 2022. Tesla’s earnings per share of $0.66 from $23.4 billion in revenue was lower than the $0.70 in earnings per share and $23.9 billion of revenue that analysts were expecting.
2. Investors Look to Fed Chair Powell’s Remarks for Insight on Rates
Federal Reserve Chair Jerome Powell will speak at 12 p.m. ET, among other talks by Fed speakers scheduled for today that could give investors insight into whether the Fed will raise interest rates above the current 22-year high as officials prepare for a Nov. 1 rate decision. At 1:20 p.m. ET, Chicago Fed President Austan Goolsbee delivers remarks, followed by Fed Vice Chair Michael Barr at 1:30 p.m., Atlanta Fed President Raphael Bostic at 4 p.m., and Dallas Fed President Lorie Logan at 6:40 p.m. ET.
3. Netflix Shares Jump as Subscriber Growth Smashes Estimates
Netflix (NFLX) shares surged more than 12% in extended trading after its third quarter earnings of $3.73 a share came in over analyst estimates of $3.49 a share, while revenue was in line with expectations at $8.54 billion. The results were boosted by an addition of 8.8 million paid subscriptions, above the 6.1 million estimated.
4. Pfizer to Sell Covid-19 Treatment Paxlovid for Nearly $1,400
Pfizer (PFE) reportedly plans to price a treatment of Covid-19 drug Paxlovid at $1,390 when it begins commercial sales later this year, more than twice the $529 it charged the government. The list price is a starting point in negotiations between the drug maker and insurance providers over how much the health plans will pay to cover treatments. Shares of Pfizer gained 0.3% in pre-market trading.
5. Initial Jobless Claims, Existing Home Sales Forecast to Fall Lower
At 8:30 a.m. ET, initial jobless claims for the week ending Oct. 14 are projected to increase to 210,000 from 209,000 the week prior, while the Philadelphia Fed manufacturing survey for October is expected to show a narrower decline of 6.8%, compared with a 13.5% drop in the previous month. At 10 a.m. ET, existing home sales for September are forecast to come in at 3.9 million, below the 4.04 million in August, while the Conference Board’s index of U.S. leading economic indicators is expected to register a 0.4% decline in September, mirroring the prior month.