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Dow Jones Futures: Tesla Pops On Bullish Elon Musk, Chevron Sets $75 Billion


Dow Jones futures rose slightly after hours, along with S&P 500 futures and Nasdaq futures, as Tesla (TSLA) rose late as Elon Musk was bullish following mixed Q4 earnings.  ServiceNow (NOW) and Lam Research (LRCX) also reported after the close. Dow Jones giant Chevron (CVX) announced a mammoth buyback, with CVX stock flashing a possible buy signal.




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United Rentals (URI), Steel Dynamics (STLD) and IBM (IBM) also reported, with Teradyne (TER) on tap tonight as well.

The stock market rally stumbled Wednesday morning as Microsoft (MSFT) and Boeing (BA) were among the early earnings-related losers. The major indexes tested or undercut key levels but came well off lows, closing at or near intraday highs for a fourth straight session. A key reason: Boeing reversed slightly higher and MSFT stock slashed losses.

URI stock is on the IBD Leaderboard watchlist. United Rentals, Lam Research and STLD stock are on the IBD Big Cap 20.

Dow Jones Futures Today

Dow Jones futures advanced 0.1% vs. fair value, with CVX stock and IBM both blue chips. S&P 500 futures climbed 0.15% and Nasdaq 100 futures rose 0.3%. Tesla stock, LRCX, NOW and STLD stock are S&P 500 and Nasdaq 100 stalwarts.

Early Thursday, investors will get their first read on fourth-quarter economic growth. The GDP report will also include the quarterly PCE price index, providing a strong signal for the December PCE inflation reading on Friday morning. Also Thursday, durable goods orders, new-home sales and jobless claims are on tap.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Tesla Earnings

Tesla earnings slightly topped analyst views, which had come down significantly in the past few weeks. Revenue just missed, according to FactSet. Tesla recognized $324 million in Full Self-Driving revenue.

Automotive gross margin fell to 25.9% from 27.9% in Q3 and 30.6% a year earlier. That was below consensus. Gross margins are expected to fall significantly in 2023 following sweeping price cuts worldwide earlier this month.

CEO Elon Musk was bullish on the conference call. He said orders were double production right now following the price cuts. But the question issue is how strong demand will remain in the coming weeks and months. Musk said two million deliveries is the goal for 2023.

Tesla delivered 1,313,851 EVs in 2022, producing 1,369,611. Output topped deliveries by an increasing amount in the past three year quarters.

Tesla said the Cybertruck will begin production later this year. It said it will provide further details about an upcoming vehicle at its March 1 investor day. That could be a smaller, cheaper EV or a revamped Model 3 with lower production costs.

Late Tuesday, Tesla said it would invest $3.6 billion at its Nevada gigafactory to mass-produce Semi vehicles and 4680 batteries. But much of the announcement echoed key features of Tesla’s unfulfilled plans from 2014.

TSLA stock jumped nearly 6% in extended trade. Shares edged up 0.4% to 144.43 in Wednesday’s regular session, coming up to the 50-day/10-week lines after soaring from bear-market lows on Jan. 6.


Tesla Vs. BYD: EV Giants Vie For Crown, But Which Is The Better Buy?


Chevron Stock Buyback

Chevron will buy back $75 billion of its CVX stock, the Dow Jones energy giant said late Tuesday. That represents 20% of shares outstanding. Chevron will boost its quarterly dividend by 6% to $1.51 a share.

The oil major will report earnings early Friday.

CVX stock rose more than 2% to above 183, rebounding from the 50-day line. Shares have a 189.78 buy point from a shallow cup base. But investors could use a move above Monday’s high of 182.55 as an entry.

Other Key Earnings

ServiceNow earnings topped while revenue was in line. The business software giant also gave bullish subscription revenue guidance. NOW stock fell modestly after hours, after paring initial losses. Shares rose 1.2% to 448.77 on Wednesday after undercutting their 200-day line intraday.

Lam Research earnings beat quarterly forecasts. LRCX stock fell modestly in extended action. Shares closed up 0.2% to 448.40 on Wednesday. Lam Research stock is working on a bottoming base, with much of that above the 50-day and 200-day lines. The buy point is 504.65, but a move above Monday’s high would offer a slightly lower entry.

Teradyne earnings topped views, but guidance also disappointed. TER stock fell solidly late. Shares nudged up 0.4% to 103.44 on Wednesday, holding above the 200-day line.

LRCX and TER earnings follow ASML earnings before Wednesday’s open, with KLA Corp. (KLAC) due late Thursday.

Steel Dynamics earnings topped views. STLD stock edged up after hours. Shares closed up 2.2% to 110.41 on Wednesday. Steel Dynamics stock…



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