The highly-anticipated launch of Tesla's (TSLA) Cybertruck failed to spark an immediate surge in the electric vehicle maker's shares on Friday.The truck's pricing exceeded expectations, particularly with the base model starting at $60,990 before factoring in any electric vehicle-related tax benefits. This figure starkly contrasts with Tesla's initial 2019 projection of a $39,900 starting price for the Cybertruck.Investor concerns now revolve around the demand for the Cybertruck, especially considering the hefty price tag of nearly $100,000 for the top-tier model."There were a lot of folks in 2019 that wanted this product," commented Tom Narayan, lead equity analyst for global autos at RBC Capital Markets, during a live interview with Yahoo finance on Thursday. "I'd expect the conversion rate [from reservations] to be about 20%."The stock experienced a dip of over 2% in morning trading on Friday....
Market Dynamics: Potential Impact of Tax-Loss Selling and the 'Santa Rally' on U.S. Stocks Following November Surge
NEW YORK (Reuters) - As the curtain falls on a tumultuous year for U.S. stocks, investors are closely monitoring potential influencers that could shape equities in the final weeks of 2023. Notably, the spotlight is on the impact of tax-loss selling and the much-anticipated 'Santa Claus rally.'The primary driver for stocks remains the anticipated path of the Federal Reserve's monetary policy. Signs of slowing economic growth have fueled speculation that the U.S. central bank might initiate rate cuts as early as the first half of 2024. This prospect has ignited a rally propelling the S&P 500 to a robust 19.6% year-to-date gain, reaching a fresh closing high for the year this Friday.Simultaneously, this year has seen robust seasonal trends. Historically weak September gave way to a volatile October, yet November, traditionally a strong month, delivered a substantial 9% gain for the S&P 500."While we've had a solid year, historical patterns suggest that December can sometimes chart its own...
Signs of Expanding Price Pressures Emerge as Japan's Corporate Service Inflation Sees an Upward Climb
TOKYO (CNN) - In a noteworthy development, Japan experienced a notable uptick in business-to-business service inflation throughout October, fueled by the constraints of a tight job market that propelled labor costs. Data from the Bank of Japan (BOJ) on Monday revealed that the services producer price index, a metric gauging the prices companies charge each other for services, exhibited a robust 2.3% increase in October compared to the previous year. This marked a significant acceleration from the revised 2.0% gain reported in September.Various sectors, including information and communication, machinery repair, and worker dispatching, reported escalated fees attributable to heightened labor costs. Notably, the influx of inbound tourism contributed to a substantial 49.9% surge in hotel fees.This surge underscores the expanding realm of price pressures, sparking speculation about the potential for a near-term departure from ultra-loose monetary policies. BOJ Governor Kazuo Ueda emphasized...