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Oil Prices Dip Amid Middle East Tensions and Fed Watch

Oil prices took a breather in Asian trading on Thursday after a string of gains earlier in the week. Market attention remained focused on the ongoing Israel-Hamas conflict, with investors eagerly awaiting further developments. Additionally, the upcoming signals from the Federal Reserve held sway over market sentiment.

This week saw a surge in oil prices due to an escalation in the conflict, triggered by the tragic bombing of a Gaza hospital and the cancellation of a summit involving U.S., Egyptian, and Palestinian leaders. These events raised concerns that other Arab nations might join the turmoil, potentially disrupting oil supplies in the region and tightening global crude markets. While Iranian ministers called for an oil embargo on Israel, the Organization of Petroleum Exporting Countries (OPEC) stated that they had no immediate plans for action.

The situation was further compounded by U.S. inventories showing a more significant draw than expected in the week ending October 13. Decreasing gasoline and distillate inventories pointed to robust fuel demand in the United States. These factors combined to create a complex economic landscape for oil markets.

Dow futures steady as Netflix, Tesla report

US stock futures were trading in a tight range during Wednesday’s evening deals, after major benchmark averages declined significantly throughout regular trading as Treasury bond yields surged to fresh 16-year highs.

By 6:30pm ET (10:30pm GMT) Dow Jones Futures and S&P 500 Futures were flat while Nasdaq 100 Futures ticked up 0.1%

Tesla earnings are here!

In extended deals, Tesla (NASDAQ:TSLA) lifted 1%, reporting Q3 EPS of $0.66 versus $0.73, while revenues came in at $23.4 billion versus $24.32 billion expected. The company also announced a delivery event for the Cybertruck on a November 30th.

Netflix (NASDAQ:NFLX) popped 13% after the company reported Q3 EPS of $3.73 versus $3.49 expected, with revenues reported at $8.54 billion versus $8.54 billion expected. Meanwhile, subscribers lifted by 8.76 million versus 6.2 million expected.

Equifax (NYSE:EFX) dropped 7% after reporting Q3 EPS of $1.76 versus $1.79 expected, with revenue coming in at $1.32 billion versus $1.33 billion expected.

Lam Research (NASDAQ:LRCX) fell 4%, reporting Q1 EPS of $6.85 versus $6.07 expected. Revenue came in at $3.48 billion versus $3.41 billion expected.

Ahead in Thursday’s trade, market participants will be watching for jobless claims data, the Philadelphia Fed manufacturing index, existing home sales, as well as speeches from Jefferson, Powell, Goolsbee, Barr, Bostic, Harker and Logan.

Among earnings, companies including Taiwan Semiconductor Manufacturing (NYSE:TSM), Philip Morris International Inc (NYSE:PM), Union Pacific Corporation (NYSE:UNP), Blackstone Inc (NYSE:BX), AT&T Inc (NYSE:T) and American Airlines Group (NASDAQ:AAL) are expected to release quarterly results.

During Wednesday’s regular trade , the Dow Jones Industrial Average fell 332.6 points or 1% to 33,665.1, the S&P 500 lost 58.6 points or 1.3% to 4,314.6 and the NASDAQ Composite dipped 219.4 points or 1.6% to 13,314.3.

On the bond markets, United States 10-Year rates were at fresh 16-year highs of 4.911%.



Foxconn’s Ambitious Play: From iPhones to ‘AI Factories’ for Self-Driving Dreams

Foxconn, the maestro of electronics assembly, is ready to conduct a symphony of innovation with Nvidia chips and software as their newest sheet music. In a grand reveal at Foxconn’s tech extravaganza in Taipei, Chairman Liu Young-way and Nvidia’s CEO Jensen Huang introduced their epic collaboration’s magnum opus: the “AI factories.” Huang declared that this was the age of “intelligence production,” with data centers being the heartbeats of these digital production lines.

Nvidia’s star players, their chips and the enigmatic GH200 superchip, are set to take center stage, although the GH200’s passport doesn’t include a visa to China due to export red tape. This headline-stealing performance comes right after Nvidia’s plot twist involving U.S. export restrictions, adding a touch of suspense to the tech saga. The stage is set, and Foxconn’s pivot from iPhones to the world of autonomous vehicles and AI factories promises a dazzling encore to its already legendary tech symphony.

Tesla’s Earnings Zap: Shockingly Short of Expectations

In a world where Tesla’s quarterly reports are eagerly awaited like the latest superhero blockbuster, the electric vehicle giant delivered a plot twist that left Wall Street’s popcorn untouched. Tesla Inc (NASDAQ:TSLA) reported an adjusted EPS of $0.66 on revenue of $23.35 billion, missing analysts’ predictions of $0.73 EPS on $24.32 billion in revenue, resembling the moment when the villain escapes just as the hero lunges for a last-minute save.

The culprit behind this financial caper? Margins took a hit, slowing to 16.1% as the fallout from recent EV price cuts unfurled, down from a heroic 18.7% in Q2. In a daring move during this tale of price cuts, Tesla slashed prices on certain car models in the U.S. and even brought its full self-driving software down to $12,000 from a formidable $15,000, signaling a plot twist that even Hollywood couldn’t script. Tesla’s stock? It remained as unmoved as a stoic protagonist in after-hours trading.

Smart investing is like cooking a gourmet meal; you carefully select the finest ingredients, stir in a dash of patience, and let it simmer over time. While others might be tempted to microwave their financial future with get-rich-quick schemes, wise investors savor the slow-cooked success of their portfolios, knowing that in the end, their wealth will be the pièce de résistance of their financial feast. So, don your chef’s hat, diversify your assets, and prepare for a delectable return on investment that’s as satisfying as a perfectly aged Bordeaux.