The S&P 500 has notched three straight closing record highs and looked to be cruising on its way to a fourth earlier today. However the index has now given back most of its gains with the S&P 500 up 15 points after rising as much as 35 points.
The index is now chewing into the session-opening gap.
5 min chart SPX
The main catalyst for selling was a 2 basis point tail at a $61 billion 5-year Treasury auction. It was the largest tail since September 2022 and raises some concerns about US indebtedness ahead of the upcoming Treasury refunding announcement.
US yields are up 3-5 bps across the curve at the moment and the highs of the day.
We’re also into earnings season and there is angst about that, including Tesla after the close today and American Airlines tomorrow pre-market.
Expectations for Tesla are:
- EPS of $0.74
- Revenue of $23.17 Billion
- Auto gross margins (ex-credits): 15.7%
Comments on the order book will also be crucial. A leak today that Tesla will roll out a new $25,000 model in mid-2025 has been met with little market reaction and TSLA shares are down more than 20% so far this year.
TSLA shares daily