Home Finance News Tesla Deliveries Due as Dow Jones Falters on McCarthy Defeat, Increasing Shutdown Odds

Tesla Deliveries Due as Dow Jones Falters on McCarthy Defeat, Increasing Shutdown Odds

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Tesla Deliveries Due as Dow Jones Falters on McCarthy Defeat, Increasing Shutdown Odds

Dow Jones futures, along with S&P 500 futures and Nasdaq futures, are set to open on Sunday night amidst uncertainty over a government shutdown this weekend. The House rejected a stopgap spending bill from Speaker Kevin McCarthy, increasing the likelihood of a shutdown. In addition to the government shutdown concerns, Tesla is expected to report third-quarter production and delivery figures early Monday, with analysts lowering their forecasts in recent days. Other electric vehicle manufacturers, including Nio, Li Auto, and XPeng, are also set to release their September and third-quarter sales figures. The stock market rally attempt that began midweek has been lackluster, particularly for the Dow Jones, and investors should exercise caution before adding exposure.

The possibility of a government shutdown appears likely, as the House and Senate are at odds on spending bills. The rejection of a short-term funding bill by the House is a negative sign for a potential deal in the future. A government shutdown would result in up to 3.5 million government workers going without pay and key economic data, such as the September jobs report, not being released. While a short shutdown would have little lasting impact on the economy or market, a lengthy shutdown could have significant implications. Fears of a government shutdown were a primary reason for the stock market gains on Friday fading quickly.

The stock market rally attempt that began midweek has not made much progress. The Dow Jones fell below its 200-day line last week and has struggled to regain that level. Despite decent market breadth in the past few days, the overall trend has been weak. Investors should exercise caution and wait for a follow-through day to confirm a new uptrend before adding exposure. Tesla is expected to report its third-quarter production and delivery figures, with analysts rushing to lower their forecasts. Other electric vehicle manufacturers are set to release their sales figures as well, but some, such as Li Auto and Nio, need significant repair time.

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