The major averages enter the final hour mixed on generally disappointing data. Since Monday the Standard and Poors 500 Index has gained 17 points or .6%, while the NASDAQ is up 66 points or .8%
Despite some really questionable numbers Tesla managed to soar some 13% yesterday. Highlights from the earnings report include its largest net loss ever of 718 million. Revenues jumped 43% but it took a 113% increase in net losses to get it. Tesla now holds some 17,000 factory gated vehicles, meaning cars produced but unable to be sold for one reason or another, this represents some 850 million in unsalable inventory at present. Net cash burn for the quarter was 436 million leaving the company with 2.24 billion at the end of last quarter. How these numbers translated into yesterday’s huge gain is anybody’s guess, but clearly Tesla is struggling to make and sell cars in sufficient quantity to solve its severe cash flow and debt issues, while the clock ticks and time runs short.
July payrolls missed expectations with just 157,000 new jobs per the BLS or Bureau of Labor Statistics. Previous months were revised higher by a combined 59,000. The official unemployment rate slipped .1% to 3.9%. The Labor Force Participation rate was unchanged at 62.9%. Average hourly earnings gained .3% while the average workweek slipped .1 to 34.5 hours. For an economy that is supposedly humming along job creation and wage growth remain unusually anemic.
The Institute of Supply Managers or ISM non-Manufacturing or Services Index fell 3.4 points in July to 55.7, a 10-month low. The details were unremarkable, price data increased to 63.4.
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