U.S. stock index futures rose on Tuesday after China further relaxed its COVID-19 curbs, fuelling hopes of a recovery in the world's second largest economy.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were up 195 points, or 0.58%, S&P 500 e-minis were up 19 points, or 0.49%, and Nasdaq 100 e-minis were up 28 points, or 0.25%.
Pre-Market Movers
China ADRs – Shares of China-based companies that trade in the U.S. rose in the premarket after the easing of Covid restrictions by the Chinese government. Among them:Alibaba was higher by 1.5%, JD.com gained 2.2% and Pinduoduo was up 2.1%.
Southwest Airlines – Southwest slid 4.1% in the premarket followingthousands of flight cancellationsover the holiday weekend, a higher amount than experienced by other major airlines amid winter storm issues. United Airlines, American Airlines, Delta and JetBlue all rose in premarket action.
Tesla – Tesla fell 5.3% in premarket trading, after falling for six consecutive trading days and nine of the past ten. Tesla is down about 65% for the year to date, and on pace for its largest-ever yearly loss. The latest slide follows news that the automaker will run production at a reduced rate at its Shanghai factory in January, following an end-of-December shutdown.
Peloton – Peloton is selling refurbished bikes at discounts of up to $500 compared with new ones. The new program is the latest effort by Peloton to boost demand, following the expansion of its rental program earlier this year. Peloton rose 1% in the premarket.
Nio – Shares of the Chinese electric car maker slumped 6.4% in premarket trading after it cut its fourth-quarter delivery forecast, saying the Covid breakout in major China cities constrained its supply chain.
Farfetch – The luxury e-commerce platform operator was assigned a B- rating by S&P Global Ratings with a negative outlook, which noted the company’s significant negative cash flow. Farfetch rose 1% in premarket action.
Market News
Tesla Used Car Price Bubble Pops, Weighs on New Car Demand
Prices of used Teslas are falling faster than those of other carmakers and the clean-energy status symbols are languishing in dealer lots longer, industry data provided to Reuters showed.
The average price for a used Tesla in November was $55,754, down 17% from a July peak of $67,297. The overall used car market posted a 4% drop during that period, according to Edmunds data. The used Teslas were in dealer inventory for 50 days on average in November, compared with 38 days for all used cars.
Nio lowers Q4 delivery outlook
NIO has lowered Q4 delivery outlook to 38,500 to 39,500 vehicles in the fourth quarter of 2022, adjusted from previously released outlook of 43,000 to 48,000 vehicles.
NIO along with other EV car maker will report Q4 delivery numbers on 2nd Jan, 2023.
TSMC Readies 3nm Chips for Next-Gen Macs and iPhones
TSMC is preparing to mass produce its next generation 3nm chips, which will be used in Apple’s Macs and iPhones.
According to DigiTimes, the company is preparing to mass produce the new chips, which Apple will use in its next-gen devices. The outlet reports that TSCM will hold a ceremony on December 29, at Fab 18, to launch production of the new chip.
Alibaba's E-Commerce Platform Braces For Its Metaverse Debut
Alibaba Group Holding Limited's e-commerce platform Taobao conducted final tests before making its first metaverse live-streaming product debut.
Alibaba's metaverse project will likely launch online around the upcoming New Year's shopping extravaganza, Coingape reports.
Amazon Prime Air Drone Deliveries Began in Time for Christmas
Amazon on Friday began deliveries using Prime Air drones in Lockeford, California, and College Station, Texas. Amazon (AMZN) hopes to use feedback from the service to improve its operations, and eventually scale the service nationwide. To fly delivery drones in the U.S., companies have to be approved by the FAA, and the retail behemoth is one of only several firms in the U.S. that has received Part 135 certification.
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