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The futures on the Dow Jones rose slightly Wednesday night, as well as futures on the S & P 500 index and futures on the Nasdaq. You're here (TSLA) reported that first-quarter deliveries were well below expectations. While bulls and bears have been debating Tesla's delivery figures, they have arrived too late for after-hours stock trading. At the same time, Boeing shares allowed Dow Jones futures to recover after the aerospace giant successfully claimed the new Boeing 737 Max software test. Southwest Airlines (LUV) and American Airlines (AAL), which has the largest number of Boeing 737 Max jets from US carriers, has slightly increased.
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Dow Jones Futures Today
Dow Jones futures increased 0.2% over fair value. Boeing (BA) represents the largest weight of the price-weighted Dow Jones Industrial Average. The futures on the S & P 500 index rose 0.1%. Futures on the Nasdaq 100 rose 0.2%. Do not forget that day-to-day futures trading on Dow and elsewhere do not necessarily translate into actual trading at the next regular trading session.
Current stock market rally
The Nasdaq led a strong morning recovery led by smart stocks. The major averages faded in the afternoon, as the Dow Jones and S & P 500 indexes turned briefly negative, before narrowing. Nevertheless, the current stock market rally is approaching highs.
The VanEck Vectors Semiconductor ETF (SMH) climbed 2.3% to a new closing high. The Philadelphia Semiconductor Index, or Philly Sox, has hit a record.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) climbed 0.5%, still in the buying range from a 33.58 cup handle.
Tesla Deliveries
Tesla's shipments reached 63,000 for the first quarter, well below estimates for about 76,000 to 78,000. This includes 50,900 Tesla model 3 sedans. Tesla Model S and X, older but more expensive, were only 12,100, down 56% from the previous quarter.
The company has maintained its annual forecast for 360,000 to 400,000 vehicle deliveries in 2019.
Tesla said some 10,600 vehicles were "in transit", citing logistical problems in shipping to Europe and China, where the demand for Model 3 was pushed back.
However, actual production was 77,100 vehicles, down 11% from the fourth quarter. If the demand was really robust, why would the pioneer of luxury electric vehicles reduce its production?
Tesla's demand is expected to decline in the first quarter, particularly in the United States, as pent-up demand fades and the federal tax credit is halved to $ 3,750.
Tesla has reduced vehicle prices three times in 2019, another sign of weakening demand. This includes a long-awaited model 3, worth $ 35,000, although it is difficult to determine if model 3 base sedans have been delivered.
Chief Executive Elon Musk admitted last month that Tesla would probably not make a profit in the first quarter.
Tesla Stock at the price of bad news?
Did investors take into account the bad news regarding Della's deliveries and demand? Tesla shares have dropped significantly since the failure of an escape in early December, even as the stock market in general has appreciated strongly. Stocks rebounded since March 25, rising 2.1% on Wednesday to just below their 50-day moving average.
Nevertheless, the relative strength is close to its lowest level in five years, reflecting the underperformance of the Tesla stock compared to the S & P 500 index.
The company has released its delivery figures for the first quarter after 20 hours. And, so the action Tesla did not have the chance to react.
Elon Musk and the SEC are arguing in court after claiming to have violated a late 2018 settlement by tweeting without getting approval from the company.
Boeing 737 Max Software Testing
Boeing CEO Dennis Muilenburg has joined a Boeing 737 Max test flight for the updated MCAS anti-stall software. "The software update worked as expected," said the company.
Finalizing a hotfix is a crucial step in bringing the Boeing 737 Max back into service. But the FAA and other countries will probably take weeks or even months to sign. The FAA is forming a joint working group with NASA and aviation regulators overseas to review the Boeing 737 Max software patch, the agency said Wednesday.
Meanwhile, the Boeing 737 Max controls take a hit.
Boeing stock technical test
Boeing shares climbed at the end of the trade, rising 2.1% to 392.90 from 399, which would bring Boeing's shares closer to their 50-day moving average. The Boeing stock fell 1.5% to 384.74 on Wednesday.
Southwest Airlines shares were up 1.6% late and American Airlines shares up 1%. Southwest Airlines recently warned against key indicators in the first quarter, due to the grounding of the Boeing 737 Max and other factors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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