Eldon, Missouri – (StockNewsDesk) – 11/06/2014 — A slew of economic indicators performed better than the Street expectations. Additionally, the European Commission extended comments providing a boost to both US and European markets. ECB chief Draghi encouraged stimulus measures in the form of buying bonds to bring the European economy back on a growth track. Better than expected indicators prompted crude oil futures and gold futures to trade at their lowest levels. Crude fell nearly 2%, while gold futures are trading within a normal range. Tesla, the premium car maker, provided better than expected profits. Shares of the company were trading above 5% post declaration of results.
The number of people applying for unemployment declined unexpectedly by 10,000. The Initial Claims data came in at 278,000 compared to estimates of 285,000. This is a great sign for the job market given that the Initial Claims has been steadily providing numbers below the 300,000 figures. This is also the lowest level attained in more than fourteen months. The Nonfarm Payroll data, which shows us the health of the country’s job market, might show a reading of 231,000. The unemployment rate has been steady at 5.9%. Moreover, production of the US Nonfarm segment rose 2% compared to expectations of 1.5% and earlier reading of 2.9%. With the increase in production, wages of US workers have also increased by 0.3%. Although the figure is lower than expectations of 0.5%, it meets the criteria of increasing the interest rates. On an hourly basis, compensation, on average, increased 3.3%.
Tesla Earnings Beat Expectations
Luxury car maker Tesla Motors provided earnings that beat the consensus on Wall Street. For the third quarter, Tesla posted earnings of 2 cents compared to the analysts’ estimate of a loss of a cent and earlier quarter’s profit of 12 cents. Tesla reported earnings of $932 million compared to $889 million estimated by Wall Street analysts. The sales figure is also well above earlier period’s revenue of $603 million. The company said that the third quarter had seen the highest number of car deliveries. The number stood at 7,785.
The guidance given by the company, however, disappointed investors. The company lowered its earnings guidance in the range of 30 and 35 cents. The company expects to sell 33,000 instead of 35,000. The company has lowered the guidance because Tesla expects the sale of its Model S to be slower than expected. Wall Street expected the guidance to be around 75 cents.