Key Takeaways
- Tesla (TSLA) reported Q2 deliveries of 480,126 vehicles, significantly outperforming the analyst consensus of 396,466, though shares remained volatile following the news.
- Anthropic has reportedly begun early-stage development of its own AI chips and is in discussions with Samsung and other design firms to reduce reliance on external providers.
- US Factory Orders for May fell 1.3%, a smaller decline than the 2.0% drop expected by markets, while Durable Goods Orders ex-transportation rose 1.4%.
- HSBC issued a massive price target hike for Intel (INTC), doubling its valuation from $100 to $200 per share.
- Ford (F) struggled in the second quarter, reporting a 40.7% plunge in electric vehicle sales and a 10.3% decline in overall US vehicle sales.
Tesla Deliveries Surprise While Ford Falters
Tesla (TSLA) surprised Wall Street on Thursday by reporting 480,126 deliveries for the second quarter, far exceeding the estimated 396,466 units. Production for the quarter reached 451,758 vehicles, led by the Model 3/Y segment which saw 467,762 deliveries. Despite the initial 3% spike in premarket trading, shares later reversed course to trade 2.2% lower as investors weighed the broader automotive outlook.
In contrast, Ford (F) reported a difficult second quarter in the US market. The legacy automaker saw EV sales crater by 40.7%, while its flagship F-Series pickup truck sales dropped 11%. Total vehicle sales for Ford fell 10.3% during the period, highlighting a widening performance gap between the market leader and traditional manufacturers in the electric transition.
Anthropic Joins the AI Chip Race
AI startup Anthropic is making moves to secure its hardware future, reportedly entering talks with Samsung and various chip design firms to develop a custom AI chip. The company has started early-stage work on its own silicon to power its large language models. This move follows a broader industry trend of software giants seeking to insulate themselves from supply chain bottlenecks.
Meanwhile, Nvidia (NVDA) is reportedly leveraging its powerful balance sheet to assist customers in financing the purchase of its expensive AI hardware. This strategic move aims to maintain Nvidia's market dominance while potentially generating additional interest income. In the semiconductor space, Intel (INTC) received a major vote of confidence as HSBC raised its price target to $200, citing a "special" situation regarding the company's stake and recovery path.
US Economic Resilience Amid Labor Cooling
Fresh economic data painted a mixed picture of the US economy in May and June. Factory Orders fell 1.3%, which was better than the 2.0% contraction forecasted by economists. Durable Goods Orders remained steady at a 4.5% decline, but the Ex-Transportation metric beat expectations with a 1.4% gain, suggesting underlying strength in core manufacturing.
However, the labor market showed signs of cooling as the US economy added fewer jobs than expected in June. White House advisor Kevin Hassett noted that while the jobs data remains consistent with a strong economy, growth does not necessarily lead to inflation. Hassett also commented on the Federal Reserve, remarking that it is "very unusual" that Chair Jerome Powell has not yet departed the central bank.
Global Market Trends and Currency Shifts
In international markets, Germany's DAX index surged 2% to reach 25,541.79, while Canada’s Manufacturing PMI edged up slightly to 53.0. In the currency markets, a significant milestone was reached as foreign institutional ownership of the U.S. Dollar fell to its lowest level this century. This shift comes as central banks and global investors diversify away from the greenback amid changing geopolitical dynamics.
On the monetary front, Bank of England policymaker Catherine Mann warned that June saw more upside risks to inflation compared to downside risks for economic activity. This hawkish tone suggests that global central banks remain cautious about easing policy too quickly, even as manufacturing sectors show signs of stabilization.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.