It was another tough session that saw only two sectors higher (defensive) and growth sectors slammed.

All factors were in the red with growth and momentum is leading the charge.

Late buying lifted major indices off the lows of the session ahead of the first of the Mag Seven to post quarterly financial results.

That positioning paid off for folks that loaded up on Tesla (TSLA), which posted results after the close.

• Revenue: $25.2 billion missed by $500 million
• Operating Margin: 10.8% +3 percentage point
• Free cash flow: $2.74 billion
• EPS: $0.72 beat by $0.12

The stock soared after the close.

The company is now sitting on $35.0 billion in cash. Tesla shares are still down for the year, but it will drive the early market action today.

Today’s Session

The Tesla (TSLA) news put a pep in the step of equities ahead of the opening bell. Overall, the reaction to financial results remains positive, which masks several issues.

For instance, at United Parcel Service (UPS), average daily package volumes were down sharply for domestic next day and deferred. Pricing increases offset less demand, but like everything else in the economy, it is clear consumers are trading down.

This is not a sign of a strong economy. Resilient, but not strong.

UPS is going to be a big winner out the gate today and many commentators will extol its role as a proxy for the US economy.

Watching Bonds

We are still watching bonds closely, as the last three spike in yield were associated with big swoons in the stock market.

Comments

We are Rocking and Rolling. First comes the election, then comes accountability of a promised truth. After all is said and done we are left with a pregnant world in which our vision will encounter reality. I offer a sincere prayer for our future leaders regardless of political party affiliation. The unknown is daunting. Clint Rotenberry on 10/24/2024 8:24:28 AM

As a long-term strategy investor with about 25 stocks and a half dozen ETF in a portfolio, and in cooperation for about 20 years, with an investment adviser you have given me more to look at. Jerry R. Spumberg on 10/24/2024 11:43:57 AM

Thanks for the additional perspective, Charles. Can't wait for classes to begin. Jerry R. Spumberg on 10/24/2024 11:46:16 AM

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