Today is Thursday, October 24, 2024.

The Early Bird Index today is 74.20.

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Tesla's Gross Margin 🚗

Despite mixed financial earnings results on Wednesday, Tesla (Nasdaq: TSLA) jumped 12.10% in after-hours trading.

Financials: Tesla reported earnings of 72 cents per share in the past quarter, which was better than expected. However, revenue only reached $25.1 billion, which was lower than expected.

Powering the Story: The gross margin reached 19.8%, the highest it's been in a long time. Tesla’s energy business posted a record gross margin.

Early Bird’s Nest Egg Gains: Tesla's gross margin is crucial for its business. It can be higher than other automakers and gives it the ability to adjust prices strategically.

Final Thoughts: Tesla was down 14% this year. It’s about time it got a positive market reaction.

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Notables

Notable Earnings Today: American Airlines (Nasdaq: AAL), United Parcel Service (NYSE: UPS), Deckers Outdoor (NYSE: DECK), Southwest Air (NYSE: LUV), Western Digital (Nasdaq: WDC), NASDAQ (Nasdaq: NDAQ), Skechers USA (NYSE: SKX), Boston Beer (NYSE: SAM), Capital One (NYSE: COF), Harley-Davidson (NYSE: HOG), Hasbro (Nasdaq: HAS), Honeywell (Nasdaq: HON), Carrier Global (NYSE: CARR), Boyd Gaming (NYSE: BYD), Keurig Dr Pepper (Nasdaq: KDP), Labcorp Holdings (NYSE: LH), Tractor Supply (Nasdaq: TSCO), Coursera (NYSE: COUR), Union Pacific (NYSE: UNP), Texas Roadhouse (Nasdaq: TXRH), OSI Systems (Nasdaq: OSIS), Dexcom (Nasdaq: DXCM), Northrop Grumman (NYSE: NOC), Edwards Lifesciences (NYSE: EW), AppFolio (Nasdaq: APPF), TRI Pointe Homes (NYSE: TPH), Kinsale Capital (NYSE: KNSL), LKQ (Nasdaq: LKQ), ADT (NYSE: ADT), Alkermes (Nasdaq: ALKS), Allegion (NYSE: ALLE), Alliance Bernstein (NYSE: AB), Arthur J. Gallagher (NYSE: AJG), Associated Banc-Corp (NYSE: ASB), Berkshire Hills Bancorp (NYSE: BHLB), Bread Financial (NYSE: BFH), Brunswick (NYSE: BC),  CBRE Group (NYSE: CBRE), Columbia Banking (Nadsaq: COLB), Digital Realty Trust (NYSE: DLR), Dover (NYSE: DOV), Dow (NYSE: DOW), Euronet (Nasdaq: EEFT), Exponent (Nasdaq: EXPO), Expro Group (NYSE: XPRO), FirstService (Nasdaq: FSV), Integer Holdings (NYSE: ITGR), Lear (NYSE: LEA), Life Time (NYSE: LTH), Lindsay Corp (NYSE: LNN), L3Harris (NYSE: LHX), McGrath RentCorp (Nasdaq: MGRC), MSC Industrial (NYSE: MSM), NetScout Systems (Nasdaq: NTCT), Pacific Premier (Nasdaq: PPBI), Piedmont Office Realty Trust (NYSE: PDM), Pool (Nasdaq: POOL), Radius Recycling (Nasdaq: RDUS), Reliance (NYSE: RS)  ResMed (NYSE: RMD), Rogers Communications (NYSE: RCI), RPC (NYSE: RES), Ryder System (NYSE: R), S&P Global (NYSE: SPGI), Simply Good Foods (Nasdaq: SMPL), Sonic Automotive (NYSE: SAH), Southside Banc (Nadaq: SBSI), SPS Commerce (Nasdaq: SPSC), SS&C Technologies (Nasdaq: SSNC), Teck Resources (NYSE: TECK), Textron (NYSE: TXT), Valero Energy (NYSE: VLO), Valley National (Nasdaq: VLY), VeriSign (Nasdaq: VRSN), Virtu Financial (Nasdaq: VIRT), Wabash National (NYSE: WNC), West Pharmaceutical Services (NYSE: WST),  WEX (NYSE: WEX).

Notable IPOs Today: Ingram Micro Holding Corporation (NYSE: IBGM), Cayson Acquisition Corp Ordinary shares (Nasdaq: CAPN).

Notable Equity Crowdfunding Campaigns Ending Today: Jurny (Wefunder), GoodWag (StartEngine).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Building Permits (8:30 p.m. ET), S&P Global US Manufacturing PMI (9:45 a.m. ET), S&P Global Services PMI (9:45 a.m. ET), S&P Global Composite PMI (9:45 a.m. ET), New Home Sales (10:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

IBM's Lagging Business Units

Some good and bad with IBM’s (NYSE: IBM) financial earnings results on Wednesday, which sent the stock down 2.49% in after-hours trading.

Financials: IBM reported earnings of $2.30 per share in the past quarter, which was better than expected. But revenue only reached $15 billion, which was lower than expected.

Powering the Story: Revenue for the software business jumped 10%, but it was flat for the consulting business unit, and down 7% for the infrastructure business unit.

Final Thoughts: Despite the lagging units, IBM is up 44% this year.

Ethereum Slumps on Wednesday

Ethereum continued its bad month with a 3% decline in price on Wednesday.

Final Thoughts: Ethereum is down 4% in the last 30 days.

Trends to Watch

Now That’s Bad: ServiceNow delivers another earnings and revenue beat, but its stock dips as guidance disappoints (SiliconANGLE)

Sounds Good: T-Mobile Beats Third-Quarter Expectations, Raises Outlook (Barron’s)

More Room to Drop: How low can the Bitcoin price go? (Cointelegraph)

Riding Below its Value: Shares of Peloton surge 11% after David Einhorn says stock is significantly undervalued (CNBC)

Hitting the Brakes: Truckers ODFL, Knight-Swift See Earnings Drop on Weak Freight Demand (Wall Street Journal)

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_{The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.}