Traders are watching Tesla (TSLA), the leader in the electric vehicle market. It will post results after the market closes today. Expectations on profits and sales are so low that the stock may stage a relief rally. Still, shareholders will care more about approving or denying the compensation package for CEO Elon Musk.
On Monday, Tesla announced an EV price cut globally. That directly hurts Chinese EV suppliers. Li Auto (LI), which lost 5.57% on the day, is a stock that investors should avoid. Traders are speculating on Nio (NIO) and XPeng (XPEV), betting that their shares stop falling. However, BYD (BYDDF) is the strongest among the Chinese EV suppliers.
In the telecom sector, Verizon Communications (VZ) opened over 3% higher on Monday only to lose 4.67% on the day. The chart indicates a bearish “double top” pattern at $43 formed in January 2024. Markets dumped the stock when the company reported more volatile flexible mobile plans is the reason for the quarterly subscriber growth. Consumer revenue topped $25.1 billion, up by 0.8% Y/Y. It expects EPS of up to $4.70, above the average analyst estimate of below $4.60.
AT&T (T), which investors should avoid, fell in sympathy.
