Opening Bell: Tesla tanks
Sunday scaries don't seem to realize it's only Friday. Phil Rosen here in New York — the markets have looked grim recently, and commentators seem to be ringing recession bells more loudly since Wednesday's rate hikes.
The tech sector, notably, has taken a beating during this year's downturn, as big companies like Apple, Microsoft, and Alphabet all plunged in Thursday's session.
But, those giants aside, today we're highlighting Tesla, which fell 10% yesterday.
Here we go.
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1. Shares of Elon Musk's EV-maker continue to hit turbulence. The news site Electrek reported that Tesla has raised the prices on most of its cars, sending shares sliding steadily throughout Thursday's session.
The stock fell as much as 10%. Year-to-date, Tesla has declined roughly 34%, underperforming the S&P 500's slide of about 23%.
Out of all the Tesla models, one of the souped-up Model X's saw the biggest increase, with its sticker price jumping from $114,990 to $120,990.
Piling on to the day's bad news, famed investor Jim Chanos — who's been shorting Tesla stock — said there's plenty more to worry about for the car company.
"We have a large suspicion that a disproportionate amount of the profits are coming out of Shanghai. And that raises all kinds of other risks to the multiple," Chanos told Bloomberg this week.
He added that Tesla is trading on a "monster multiple of a profit stream," and said it was like a poster child of the 1999 dot-com bubble.
But Tesla is not alone in its troubles. There's plenty of tumult to go around for the broader tech sector, billionaire investor Orlando Bravo said Thursday.
"I think there's more pain to come [for tech stocks]," Bravo told CNBC.
"We've gotten to the place of enough industry maturity where investors…are saying, 'I want profitability today.' And that is going through a major rerating."
In other news:
2. US stock futures rise early Friday, after yesterday saw the Dow tumble below 30,000 points for the first time since early 2021. Check out how markets are moving this morning.
3. On deck today: Alithya Group and MICT Inc, reporting. Plus, Fed Chair Jerome Powell is speaking at the International Roles of the US Dollar conference.
4. This top portfolio manager said that avoiding a recession would be a "pleasant surprise" as risks to the economy mount. GMO's Ben Inker has beaten 89% of peers this year. He thinks these five cheap, attractive groups of stocks are set to thrive.
5. Russia's Gazprom continues slashing natural gas supplies to Europe. And it's happening just as customers are trying to build up inventories for the winter. Germany said the Russian oil giant is trying to push gas prices higher.
6. Crypto bull Mike Novogratz warned the economy is going to collapse. The Fed is hiking rates as a bubble pops, the Galaxy Digital CEO told MarketWatch. "We are going to go into a really fast recession, and you can see that in a lot of ways."
7. The stock market faces heightened risk of another sell-off if the VIX crosses 38, according to Fairlead's Katie Stockton. The so-called fear gauge of the market is fluctuating, but if it hits a certain level then it raises the risk of a capitulatory spike, the analyst said. Here's what you want to know.
8. Meet a 30-year-old who rakes in about $89,000 a month from two online side hustles. He used YouTube tutorials to learn technical know-how and build a successful brand. He recommended these three skills to earn money online — and shared his investing strategy.
9. The housing market is quickly cooling off after years of price gains and bidding wars. The landscape looks very different all of a sudden, as mortgage rates spike and the soaring market sputters. Housing experts explained exactly what's happening and why.
10. Housing affordability is plummeting. It's not just interest rates that are going up — everything else in the economy is getting more expensive as pandemic-era wage increases taper off. The National Association of Realtors affordability index has cratered nearly 40 points this year.
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Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn.) Edited by Max Adams (@maxradams) in New York and Hallam Bullock (tweet @hallam_bullock) in London.