Dow gained 22, decliners over advancers 5-4 & NAZ inched up 12. The MLP index hardly budged all day in the 223s & the REIT index went up chump chamge to 370. Junk bond funds were weak & Treasuries continued with modest selling, raising yields. Oil remained up slightly in the 77s & gold sold off 29 to 1989 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
In a sudden reversal, Tesla (TSLA) has increased the prices for some of its premium electric vehicles after a cascade of price cuts since Jan meant to stimulate demand. Yesterday, TSLA raised the prices of its Model S Plaid & Model X
Plaid, the performance versions of those models, to $107,490, up from
$104,990 earlier. The price of the Model X is now roughly 2.6% higher at $97,490, while that of the Model S was increased around 2.9% to $87,490. Even so, all 4 premium models are still 16% & 23% cheaper than they were earlier this year. TSLA had been slashing its prices globally for several months in an attempt to increase demand for its mass-market cars, the Model Y crossover & the Model 3 sedan. TSLA
released its Q1 report Wed, revealing
declining profits even though year-over-year revenue increased. The company reported generating $23.3B
in overall Q1 revenue, increasing 24% compared to the same
period in the prior year. Of that total revenue figure, it included
$19.96B of automotive, $1.53B of energy generation &
storage & $1.84B of services & other revenues. The
estimates had put Q1 revenue lower, at $23.2B. Diluted EPS, meanwhile, met expectations. TSLA saw diluted EPS of 85¢, marking a 21% plunge year-over-year. The stock went up 2.10 after yesterday's selling.
If you would like to learn more about TSLA, click on this link:
club.ino.com/trend/analysis/stock/TSLA_aid=CD3289&a_bid=6aeoso5b6f7
Tesla raises US prices for Model S and X vehicles, reversing previous cuts
The Treasury Dept's risk oversight arm proposed new tools for spotting issues in the US financial system, more than a month after the collapse of Silicon Valley Bank (SVB) & Signature Ban sparked efforts to prevent further damage to the economy. The Financial Stability Oversight Council voted to approve a framework on financial stability for public feedback. The plan, which will offer Americans more transparency into the council's operations & how it identifies systemic problems, will be the first such measure it has released. “This framework outlines common vulnerabilities and transmission channels through which shocks can propagate through the financial system. And it lays out how the Council considers the tools it will use to address these risks,” Treasury Secretary Janet Yellen said. Yellen said that in trying to prevent problems in the financial system, the council does not “broadly prioritize one type of tool over another.” It plans its response to a given risk following an examination, she added. “The framework emphasizes the importance of taking a comprehensive and rigorous approach,” Yellen said. “Addressing the diverse range of financial vulnerabilities that exist today – and that may arise tomorrow – requires a broad set of flexible tools.” The Treasury Dept, along with the Federal Deposit Insurance Corp. backstopped depositors as they feared ripple effects from the collapse of SVB & Signature Bank, which catered in part to digital currency exchanges. Federal regulators shuttered both banks last month, seized their deposits, sold both entities to other financial institutions & prevented the largest banking crisis since 2008.
Treasury proposes new process to spot risks after SVB, Signature Bank failures
Ukrainian Pre Volodymyr Zelenskyy reiterated his long-standing call that his country should benefit from fast-tracked admission into NATO. “There is not a single objective barrier to the political decision to invite Ukraine into the alliance and now, when most people in NATO countries and the majority of Ukrainians support NATO accession, is the time for the corresponding decisions,” he said at the time. NATO & EU allies have so far offered military, humanitarian & financial aid to Ukraine. Analysts warn that Kyiv's fast-track bid for NATO membership, launched in Sep last year, could elude or take years to gain approval, as allies stay wary of further antagonizing Russia. The head of the Intl Atomic Energy Agency reiterated calls for relevant parties to establish a security perimeter around Ukraine's embattled Zaporizhzhia nuclear power plant. “I saw clear indications of military preparations in the area when I visited the Zaporizhzhia nuclear power plant just over three weeks ago,” IAEA director general Rafael Grossi said. “Since then, our experts at the site have frequently reported about hearing detonations, at times suggesting intense shelling not far from the site. I’m deeply concerned about the situation at the plant,” he added. Russian forces seized Zaporizhzhia nuclear power plant, Europe's largest, in the days following the Kremlin's full-scale invasion of Ukraine.
Western allies meet in Germany
Gold futures declined, settling under $2000 an ounce for the first time in 3 weeks. Hawkish commentary from Federal Reserve officials supported expectations around US rates remaining higher for longer. Gold for Jun fell $28 (1.4%) to settle at $1990 an ounce. That was the first finish under $2000, & also the lowest settlement, since Mar 31 for a most-active contract,
Gold futures settle under $2,000 an ounce, at lowest in 3 weeks
West Texas Intermediate (WTI) crude oil closed higher following 2 losing sessions, rising on a weaker $ even as demand concerns persist. WTI crude for Jun closed up 50¢ to $77.87 per barrel. Jun Brent crude, the global benchmark, was last see up 38¢ to $81.48 per barrel. The rise comes as the $ weakened, while signs that the economy is weakening strengthen with weak diesel demand seen as a sign of lowing industrial demand & a European purchasing manager's index (PMI) for the manufacturing sector showed a sharp decline. The US reported leading economic indicators fell 1.2% last month, more than the estimate for a 0.7% drop. However demand from China is offering support for the commodity along with lower US inventories.
WTI Crude Oil Closes Higher Even as Demand Concerns Persist
Economic data keeps coming in weak starting with rising unemployment. Not terrible, but weak. Today Dow did not stray far from breakeven & was little changed for the week. The stock market continues to struggle, looking for direction.
Dow Jones Industrials
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