Happy New Year! Tuesday’s market finish was negative as selling pressures from the previous year carried over into the first trading week of 2023.
The S&P 500 declined 0.40%, while the Nasdaq Composite sank 0.76%. The closing value of the Dow Jones was barely under by 0.03%.
ROUGH START FOR TESLA
Telsa’s (TSLA) stock plunged more than 12% on Tuesday to its lowest level since August 2020, as investors reacted to a disappointing fourth-quarter delivery number reported on January 1.
Tesla’s fourth-quarter shipments increased 18% to 405,000, falling short of the average estimate of 418,000. The number increased Tesla’s total deliveries for 2022 to 1.3 million units, an increase of 40% year-over-year but below the company’s projection of 50%.
Tesla said in a separate statement that it will conduct its Investor Day on March 1 at its Texas Gigafactory, where it will likely reveal long-term growth and capital allocation plans. In addition, the manufacturer intimated that a “generation 3” platform might be shown to investors during the event.
CRYPTO WARNING
The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) published a joint statement warning of “significant” dangers posed by crypto assets to the larger financial system.
What type of dangers? According to regulators, banks face a laundry list of crypto-related dangers, including fraud, volatility, inadequate risk management, and sector-wide contagion. Legal uncertainties regarding redemptions, ownership rights, and custody methods for crypto assets were also identified by the regulators.
What is being done? The OCC has enacted regulations requiring banks to get approval before engaging in crypto operations. The Financial Stability Oversight Council is actively monitoring the cryptocurrency markets but has not yet deemed crypto activity systemic. On top of that, Several laws to regulate crypto have been introduced in Congress, but the passage of the legislation will take time.