For Week Ending April 26th

Markets Overview

DJI: +2.48% Russell 2000: +6.37%

S&P 500: +4.9% VIX: -23.04%

Nasdaq: +6.73%

Earnings Review

Tesla: EPS missed expectations at 27 cents a share while 36 cents were expected. Sales also missed greatly at 19.3 billion compared to the expected 20.1 billion.

Northrop Grumman: Sales of there B-21 plane fell shorter than expected leading to increased costs linked with the plane. Sales missed expectations by 480.2 million dollars.

RTX: Beat earnings at 1.47 EPS and 20.3 billion of sales. The expected results were 1.35 EPS and 19.8 billion in sales. Recent demand in the aerospace industry has fueled sales growth. General Dynamics posted a similar beat in earnings attributed to a boost in aerospace demand.

Upcoming Earnings

Monday: Waste Management

Tuesday: V isa, Paypal, Pfizer, Altria, GM, Starbucks, Coca Cola, Kraft Heinz, Spotify

Wednesday: Microsoft, Qualcomm, Caterpillar, Etsy, Ebay,

Thursday: Apple, Amazon, Roku, CVS, Mastercard, McDonald's, Eli Lilly

Friday: FuboTV

The Focus on Tesla

-Tesla reported far worse than expected earnings on Tuesday after market but still saw a 24.17% 5-day gain. It is clear that many Tesla investors are uninterested in the concrete results that Tesla has presented and more on future ventures. Over the last few years, Tesla has slowly become more and more a tech company than an auto company. This comes after Tesla saw one of its largest decreases in its history since February. With Elon Musk putting less attention on Tesla while doing work for President Trump, many investors feared about the future of operations and his involvement with the company. Backlash against Tesla and Elon also fueled the sell off. The earnings call provided investors with more confidence in the company. With talks of the robotaxi, many investors are looking forward to the competition that they could provide Uber. Additionally, Tesla's robot prototypes have led many people to question the future of in-home assistance and basic task robots. The help of a recovering market after Tariff deals are underway have helped Tesla recover a chunk of its losses despite missing expectations. Elon has also vowed to distance himself from government work starting in May to put a greater focus on Tesla's operations.

Bond Market by Chad Doto

-Change Throughout the Week in Yields:

This week, bond yields finally cooled off a bit after steadily rising for a while. At the start of the week, the 10-year Treasury yield was sitting around 4.65%, but by Friday it had slipped down to about 4.57%. That’s a pretty clear sign that investors are starting to think the Federal Reserve might actually cut rates later this year. Before this, yields had been climbing because inflation was staying stubborn and people weren’t sure what the Fed was going to do. Short-term yields, like the 2-year, also dipped a little, but they’re still higher than long-term ones, showing that there’s still some nervousness out there.

What Yields Are Telling Us:

The drop in yields this week is telling us a few things. First, people are starting to believe inflation might finally be cooling off, which opens the door for the Fed to lower interest rates down the road. Second, it shows that some investors are getting a little cautious and moving their money into safer places like bonds, just in case the economy slows more than expected. If yields had kept climbing, it would have meant people were feeling good about strong growth — but since they’re falling, it feels like the mood is more “hopeful but careful” right now.

The Case for Tesla

Upcoming Events

Tuesday: JOLTS Report

Friday: Nonfarm Payrolls, Unemployment Rate

Next FOMC Meeting: May 7th