Stock market rally struggles with spike in inflation; Tesla sales decline, Elon Musk activates Bitcoin as Coinbase report

The stock market rally came under pressure as major indices fell on a surge in inflation. Shares rallied towards the end of the week, but they still suffered significant losses. Real estate stocks and high-valued stocks were notable losers. Tesla In China, sales (TSLA) fell, while CEO Elon Musk turned against Bitcoin on environmental concerns. Coinbase (COIN) saw booming growth as a publicly traded company in its first earnings report but easily missed views.


Stock market rally under pressure

The major indices sold through Wednesday as inflationary pressures mounted. The Nasdaq fell through its 50-day line as the market rally went to “under pressure”. The S&P 500 found support after 50 days when the indices rallied later in the week. But it was still a bad week, with real estate and highly valued growth stocks hardest hit. The outbreaks continued to fight.

Inflation is increasing

The consumer price index rose by 4.2% from April 2020, the highest inflation rate since September 2008. The core CPI also surprised positively and rose by 3% compared to the previous year. The real surprise, however, was the 0.9% increase in core prices from March, the largest one-month increase since 1982. Economists only expected a 0.3% increase. The double-digit increase in airfares and prices for used cars and trucks resulted in a widespread increase.

While the Fed continues to believe the inflation spurt will be temporary, Wall Street braces for hotter readings after April’s employment report showed wages rise as businesses struggle to find work despite high unemployment.

New jobless claims fell to a Covid-era low of 473,000 in the week of May 8 as the labor market continued to recover. However, retail sales were flat in April after the oversized 10.7% gain in March was fueled by $ 1,400 of stimulus testing, the trading division reported on Friday. Consumers are shifting some of their spending to travel, entertainment and restaurants.

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Tesla sales crash in China

Tesla (TSLA) sold 25,845 electric vehicles in April, down 27% from 35,478 in March, according to the China Passenger Car Association. However, that number represents an even larger sequential decrease as 14,174 cars are shipped to Europe. In previous reports, CPCA sales excluded Tesla exports. That means Tesla sales in China are down a massive 67% month on month to 11,671. It is unclear to what extent the drop in sales was due to a backlash from Chinese consumers or a shortage of industrial chips affecting production. Tesla stock fell 12% over the week under pressure from an Elon Musk tweet that the EV maker would stop using Bitcoin to purchase its vehicles.

Coinbase sees more competition

Cryptocurrency exchange Coinbase (COIN) reported booming earnings and sales in the first quarter that were slightly below estimates. This was the first report since going public last month after investing in Bitcoin last year. The results came as the company asked questions about competing crypto platforms, expanded its product offerings, and how it could use its money. Coinbase noted that “competition is increasing”. It also said that the meme-based cryptocurrency Dogecoin would allow it on its platform in six to eight weeks.

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Disney falls on revenue, Miss Subscribers

Disney (DIS) EPS rose 32%, slightly beating second quarter views. However, sales were down 13% to $ 15.61 billion, below estimates. Disney + subscribers hit 103.6 million by the end of the second quarter, up from over 100 million in early March and 94.9 million on January 2. However, this failed to meet some goals for 109 million. Sales of parks, experiences and products decreased 44% to $ 3.17 billion. The Disney theme parks in Paris and California were closed during the quarter. Disneyland and California Adventure reopened on April 30th. Disney shares fell to a three-month low.

Fake wood specialists beat views

T-rex (TREX), the composites decking company, posted earnings per share of 13% while sales rose 22.5% to $ 245.52 million. Azek Income (AZEK) increased 108% as sales increased 19% to $ 293.1 million. The polymer construction company is now seeing sales growth of 23% to 26% year over year in 2021. However, both stocks fell well below the buy points as property stocks struggled.

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Vaccine games show a strong result

Covid vaccine supplies Maravai life sciences (MRVI) and BioNTech (BNTX) beat estimates for the first quarter. On Monday, Maravai reported earnings per share of 167%, up 191% to $ 148.2 million. The company provides a key component in the manufacture of some Covid vaccines, including. Also monday, Pfizer BioNTech, partner of (PFE), said first quarter revenue grew a four-digit percentage to approximately $ 2.49 billion as adjusted earnings rose to $ 5.34 per share due to losses in the year-ago period be. Meanwhile, Novavax (NVAX) was hammered after the company announced it would file for approval of its Covid vaccine in the US, UK and Europe in the third quarter, unlike previous plans for the second quarter.

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Yeti tripling

Yeti Holdings (YETI) put the estimates down, with EPS up 245%. Revenue rose 42% to $ 247.6 million, the best profit in eight quarters. The ongoing boom in home buyers for outdoor gear resulted in a surge in Yeti revenue. Sales to direct customers increased by 59%. Yeti, which makes trendy and expensive coolers, mugs, and backpacks for campers and hikers, has also raised the outlook for the full year. IBD 50 stock rebounded strongly from its 50-day line, a bullish signal, and is now being extended past 80.99.

Airbnb results mixed

Airbnb reported a higher-than-expected loss for the first quarter, but revenue soared 5% to $ 886.9 million, compared to estimates of $ 721 million when vacationers returned to travel. Gross bookings rose 52% to $ 10.29 billion for the quarter, undoing the $ 6.93 billion outlook. Meanwhile, Marriott (MAR) reported an 80% EPS decline but it beat views. Revenue fell 51% to $ 2.32 billion.

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Alibaba’s result is insufficient

Alibaba’s earnings rose 21%, slowed for a second straight quarter, and views were absent. Revenue rose 64% to $ 28.6 billion, beating projections. The Chinese e-commerce giant served 1 billion active users, 925 million mobile active users. Meanwhile, China social media company Bilibili (BILI) reported a quarterly loss that missed estimates. BABA and BILI shares fell to new lows by 2021.

Short messages

Asian e-commerce company Coupang saw sales jump 74% to $ 4.2 billion and reported its first quarterly results since it was founded as a start-up

Toyota (TM) earned $ 5.18 per share, beating views for $ 3.45 as revenue soared 8% to $ 69.5 million. The world’s leading automaker, which has weathered the global chip shortage better than its peers, expects to return to pre-pandemic profitability this fiscal year.

Xpeng (XPEV) recorded a net loss of 13 cents per ADS on revenue of $ 450.4 million. The Chinese EV startup expects deliveries to increase by 18% in the second quarter compared to the previous quarter. This is a far more optimistic assessment than that of Nio (NOK) last month.

Callaway Golf (ELY) pushed earnings per share 94% and sales 47% up to $ 652 million as the sport gained newbies during the pandemic. The ELY share gained 13% on Tuesday and reached its best level since 1997, but was able to reduce profits.

J2 Global (JCOM) reported that first quarter earnings per share increased 56% year over year, while revenue increased 20% to $ 398.2 million, beating estimates. J2 Global took over RetailMeNot last year, thereby strengthening its digital media business.

Palantir Technologies (PLTR) met the EPS views while revenue rose 49% to $ 341.2 million, beating estimates. For the June quarter, Palantir forecast 43% revenue growth to $ 360 million, which is above consensus.

Dynatrace (DT) reported 50% earnings per share for the fourth quarter as revenue rose 30% to $ 196.5 million. The software maker said annual recurring revenue increased 35%, slightly exceeding estimates. 173 new customers were added, compared to 165 in the previous year.

Virgo Galactic (SPCE) fell after it was said that the time of the next test flight would be evaluated. Richard Branson’s space tourism company lost 55 cents a share in the first quarter.

Brooks Automation (BRKS) exceeded expectations for the March quarter and announced plans to split into two public companies. One will focus on semiconductor gears while the other will focus on life science equipment.

Vizio (VZIO) reported a 40% drop in EPS but defied views for a loss. Revenue soared 52% to $ 505.7 million and hit too. But the smart TV maker’s shares fell.

Sonos (SONO) posted better-than-expected earnings in the second quarter as revenue increased 90% to $ 332.9 million. The premium music speaker maker has also raised its guidance for the full year.

Electronic Arts (EA) posted earnings per share of 14% for the fourth quarter of fiscal year, while net bookings rose 23% to $ 1.49 billion. However, the video game maker’s earnings forecast for the current quarter and year ahead fell short of the mark.

Roblox (RBLX) lost 46 cents per share in the first quarter, compared to a loss of 44 cents per share last year. However, Roblox sales rose 140% to $ 387 million. The online platform for young players also reported better than expected user numbers. Stocks skyrocketed on earnings but reduced weekly earnings.

Shockwave Medical (SWAV) reported a larger loss in the first quarter while revenue rose 110% to $ 31.9 million. The stocks rose in earnings and rose slightly over the course of the week.

upstart (UPST), an AI lending platform, reported results for the first quarter that exceeded estimates. The company also raised its full fiscal year revenue forecast. Stocks rose but then gave up profits.


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