Today in the Market (12/13/2023)

Good Evening! On Wednesday, US equities surged, reaching new highs for 2023, as investors analyzed the Federal Reserve’s last interest rate decision of the year.

The S&P 500, Dow Jones, and Nasdaq finished very close to each other by ending up by 1.37%, 1.40%, and 1.38%, respectively.

ALMOST AS LOW AS MARCH 2020

Pfizer’s (PFE) latest announcement on Wednesday has made the stock return to its pre-pandemic highs and is now approaching its lowest levels since 2020.

How rough was it today for PFE? The stock saw a decline of up to 9% during the first trading session today, momentarily dropping below $26 per share. If you didn’t know, in March 2020, during the first stages of the COVID-19 pandemic, the stock plummeted to a low of $23.39 due to market crashes. So it is getting very close to it.

But what caused this? The company indicates that it anticipates the profits per share for the whole year of 2024 to range between $2.05 and $2.45. This expectation is $0.40 per share lower than its previous projections. On top of that, the company’s anticipated effective tax rate is projected to increase while also providing revenue predictions that fall below the expectations of financial analysts.

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Tesla (TSLA) included a provision in its purchase agreements, granting the company the right to initiate legal action against purchasers who attempt to resell a Cybertruck within one year of purchase, seeking a minimum compensation of $50,000.

So what can owners do, then? According to the agreement, owners must give Tesla the chance to repurchase the car at a discount. They can only sell the vehicle with the company’s express written consent, according to ArsTechnicaWhat if the owner doesn’t listen? Well… If consumers violate the terms of the contract, they may face a financial penalty and the possibility of being prohibited from owning a Tesla in the future.

Is this a new thing? The legal threat was there in a previous public iteration of the Cybertruck contract last month but was removed in response to negative criticism. Now it has reemerged in current contractual agreements. Such clauses are common for luxury cars, and Tesla has yet to clarify if these limitations would apply to all Cybertrucks or just the first batch.

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