Wall Street restarts with futures on the Dow Jones around par, those on the S&P 500 up 0.23% and those on the Nasdaq up 0.47%. Spotlight on Twitter stock, after the news released by the SEC, according to which Elon Musk, Tesla’s number one, would have acquired a 9.2% stake in the micro-blogging company, equal to 73,486,938 Twitter shares. The Twitter stock soars in the premarket by over 26%.
Tesla is also in the spotlight for data related to its car deliveries: the giant EV announced that it had delivered a total of 310,048 electric cars in the first quarter of 2022, compared to 184,800 units in the same period in 2021.
The production numbers were also disclosed, amounting to 305,407 units, compared to the 180,338 machines produced in the first quarter of last year.
Model 3 and Model Y vehicles accounted for 95% of total deliveries in the first quarter of 2022, for a total quantity of 295,324 units.
The giant managed and founded by Elon Musk produced 4,641 fewer cars than those delivered due, explained the company itself, “to the continuing difficulties in the supply chain and plant closures”. Analysts had expected deliveries of 317,000 cars on average in the first quarter of the year, according to data reported by FactSet on March 31.
Investors’ attention continues to remain focused on the inversion of the US yield curve in the 2-10 year segment, a phenomenon that is considered to be a harbinger of phases of recession in the United States.
The curve reversed in this stretch last week for the first time since 2019; at the moment, 10-year Treasury rates are at 2.286%, compared to 2.4384% of two-year Treasury rates, confirming the negative 2-10-year spread, hence the inversion of the curve in that stretch.
Five-year rates travel around 2.5553%, a level higher than 2.4499% for 30-year US government bonds.
“We believe that the curve is flattening due to the fear that the Fed is lagging behind in raising rates and that, as a result, it will push rates above neutral, which will damage growth,” reads a note to the TD Securities clients reported on the Cnbc website.
Investors also continue to monitor the latest developments in the war between Russia and Ukraine. Yesterday, German Chancellor Olaf Scholz reported that, in the coming days, Western nations will hit Russia with further sanctions.
“The equity and bond markets continue to send mixed signals on the economic outlook – wrote UBS in a recent note to clients – We advise caution in over-interpreting any signal. The reversals of the yield curve have historically predicted phases of recession after a long and uncertain period of time. At the same time, hopes for a ceasefire (in Ukraine) have faded “.