Are Tesla’s record profits & Chevron’s $75bn buyback enough to cheer up S&P500?

The S&P500 was flat yesterday, as investors tried to make sense of the deluge of company earnings that hit the fan before, during and after the session. Microsoft didn’t gain on better-than-expected earnings, and Tesla announced record profits, but the share price jumped only 5% in the afterhours. Latest positive price action in stocks – which is now fading, and the positive price action in bonds suggest that the recession odds became less for stock traders, and more for bond traders since the start of this year. And that’s a risk for stock gains, besides earnings. In central banks, Bank of Canada (BoC) hiked its bank rate by 25bp yesterday and announced to pause. The BoC decision spurred the expectation that the Federal Reserve (Fed) could do the same: hike by 25bp next week then pause. For the Bank of England (BoE), investors are almost sure that the year will end with a 25bp hike due to the slowing economy. But in Australia, the surprise rebound in Australian inflation, spurred the Reserve Bank of Australia (RBA) hawks yesterday. In summary, investors’ hearts will continue to swing between slowing economy and easing inflation, and the bumps in inflation along the way. But the data will tell who is right and who is wrong. All eyes are on US GDP today! Listen to find out more!