MONEY MASTER

  US stocks fluctuated as investors navigated fresh economic data and corporate earnings while preparing for key central bank decisions that are expected to shape global market trajectories. Following a US$2.3 trillion Nasdaq 100 wipeout, investors are keenly awaiting Microsoft Corp’s earnings to see if the tech giant can shift market sentiment. Concerns persist that tech firms have yet to see returns from substantial investments in artificial intelligence. Microsoft's results will set the stage for upcoming reports from Meta Platforms Inc, Apple Inc, and Amazon.com Inc later in the week, along with anticipation for the Federal Reserve's decision on Wednesday. “It’s likely the Fed does signal that looming cut and given the recent pullback, that should help this rebound continue,” said Tom Essaye at The Sevens Report. “However, if the Fed does not signal a September rate cut, markets could get a bit ugly given recent tech weakness, especially if earnings underwhelm.” Key Takeawa...

  Tesla is recalling over 1.8 million vehicles in the US due to a software failure that may not detect an unlatched hood, according to the National Highway Traffic Safety Administration (NHTSA). An unlatched hood could fully open and obstruct the driver's view, increasing the risk of a crash. Tesla has begun rolling out an over-the-air software update to address the issue, which will detect an open hood and alert drivers. The recall affects certain 2021-2024 Model 3, Model S, Model X, and 2020-2024 Model Y vehicles, all equipped with a hood latch produced in China by Magna Closures Co Ltd. The company started investigating customer complaints of unprompted hood openings in certain Model 3 and Model Y vehicles in China in March. Although fewer incidents were reported in Europe and North America, Tesla initiated engineering studies in these regions last month and decided to issue a recall. This recall is Tesla's largest since December last year, when it recalled 2.03 million US v...

  Taiwan Semiconductor Manufacturing Co (TSMC) shares fell the most in three months, dropping as much as 6.5% in Taipei as trading resumed after a two-day typhoon break. This decline contributed to a global tech sell-off spurred by investor skepticism regarding artificial intelligence (AI). Key Points: Market Impact: TSMC's decline dragged down the benchmark Taiex index by more than 4%, nearing a technical correction. Other chip stocks like ASE Technology Holding Co and MediaTek Inc also fell over 5% each. Earnings and AI Hype: Weak earnings from major US tech companies have dampened the AI hype, impacting TSMC, which has been a favorite due to its advanced chips and strong earnings. Concerns over high valuation and potential US curbs on chip sales to China have further weakened bullish sentiment. Tech Sector Trends: The sell-off in tech stocks has been intensified by weak early tech earnings reports and negative news on China tariffs. Key results from four major tech companies ...

 Tesla CEO Elon Musk announced on Thursday that he will discuss a US$5 billion (RM23.3 billion) investment in the artificial intelligence startup xAI with Tesla's board. This move aims to enhance the electric-vehicle maker's development of robotaxi and self-driving products. Key Takeaways: Investment Proposal : Musk indicated the public's support for the investment through a poll on social media platform X, where nearly 68% of respondents favored the move. AI Infrastructure : The investment will bolster Tesla's AI infrastructure, critical for training models essential to the company's autonomous technology. Earnings Call Insights : During Tesla's earnings conference call earlier this week, Musk mentioned that xAI could significantly advance Tesla's full self-driving capabilities and support the development of a new data center. He also hinted at potential integration opportunities for xAI's Grok chatbot with Tesla's software. Financial Performance : ...

  Tesla shares tumbled 12% on Wednesday, wiping out nearly US$100 billion in stock market value. This drop followed CEO Elon Musk's discussion of futuristic projects like humanoid robots and driverless taxis, which failed to allay investor concerns about the electric car maker's shrinking profit margins. Key Points for Investors: Stock Decline: Biggest Drop Since 2020: Tesla's stock fell 12%, marking the largest one-day percentage drop since 2020. This reduced Tesla's market capitalization to just under US$700 billion, down from over US$1 trillion in 2021. Profit Margin Concerns: Lowest in Five Years: Tesla posted its lowest quarterly profit margin in five years, with earnings per share missing estimates for the fourth consecutive quarter. Sales Challenges: EV deliveries have fallen for two straight quarters, and Tesla has not introduced a lower-cost model that many expected, leading buyers to turn to rival EV makers like China's BYD. Market Reactions: Investor S...

Porsche is working to restore production volumes and shift spending priorities towards a more flexible product line-up following months of supply chain issues, slow electric vehicle (EV) demand, and a sales slump in China. Despite solid half-year results, news of significant production cuts in the second quarter has shaken investor confidence. Key Points for Investors: Production Challenges: Output Cut: Porsche disclosed that production would likely fall by over 10,000 cars in the second half due to an aluminum shortage. Impact: The shortage has particularly affected Porsche due to its high percentage of pre-ordered cars, low volumes, and detailed car specifications. Supply Chain Improvements: Dual Sourcing: Porsche is increasing dual sourcing in its supply chain and improving visibility over problems at indirect suppliers to mitigate future risks. Financial Performance: Operating Profit: Fell by just over 20% in the first half to €3.06 billion. Sales: Declined 4.8% to €19.46 bill...

US stock markets showed mixed movements as investors eagerly awaited earnings reports from tech giants Alphabet and Tesla. These reports are crucial in assessing whether the recent market rally has further momentum. Key Market Movements: UPS and NXP Semiconductors Fall: United Parcel Service (UPS): Shares of UPS plummeted 12.4% due to disappointing earnings results caused by reduced package delivery demand and increased labor costs. This significant drop in UPS shares also impacted the Dow Jones Transport Average, pulling it down by 1.5%. NXP Semiconductors: The company's stock fell by 7.2% following a forecast of third-quarter revenue below estimates, affecting the Philadelphia SE Semiconductor index, which declined by 0.8%. Tech Sector in Focus: Alphabet and Tesla: Investors are closely watching the quarterly results from these tech giants. Alphabet's shares rose 0.5%, while Tesla's shares dropped 0.5%. Other Tech Stocks: Microsoft and Amazon showed positive movement,...

Tesla is expected to report its lowest quarterly margin in over five years, driven by discounts, price cuts, and incentives aimed at boosting electric vehicle (EV) sales. The company is anticipated to pivot towards its robotaxi plans and AI products to rejuvenate investor interest. Financial Performance: Q2 Margin: Analysts predict Tesla's automotive gross margin, excluding regulatory credits, to drop to 16.27%, its lowest since Q1 2019. Previous Margins: The margin was 16.36% in Q1 2024 and 18.14% in Q2 2023. Sales Strategy: Tesla's use of discounted financing amid high interest rates is considered a less visible price cut, spreading margin pressure over the loan's life. Strategic Shifts: Tesla is laying off 10% of its global workforce, reflecting strategic adjustments amid declining sales and aging model lineups. CEO Elon Musk is likely to emphasize the company's focus on self-driving technology and AI products, which are expected to distinguish Tesla from other au...

Revenue Performance and Market Reaction Verizon Communications Inc., the largest U.S. mobile carrier, reported operating revenue of $32.8 billion for the second quarter of 2024, a figure that missed analysts’ expectations of $33.1 billion. This slight revenue increase of less than 1% from the previous year resulted in a premarket share decline of about 3.3%. Key Takeaways Revenue Miss Amid Lower Equipment Upgrades : The primary driver behind the revenue shortfall was a reduction in wireless equipment upgrades. This indicates a slowdown in consumer spending on new devices, potentially due to economic factors or market saturation. Growth in Wireless and Fixed Wireless Segments : Despite the overall revenue miss, Verizon reported positive growth in specific segments: Wireless Service Revenue : Increased by 3.5% to $19.8 billion, aligning with analysts’ expectations. Postpaid Phone Customers : Verizon gained 148,000 wireless retail postpaid phone customers, surpassing estimates of 118,000....