TSLA - Wall Street Breakfast Podcast: Poor Air Quality Potential Stock Ideas

2023-07-03 06:39:27 ET

Summary

• Smoke from Canadian wildfires has led to increased demand for Honeywell air purifiers, boosting sales estimates for Helen of Troy.
• Tesla delivered 466,140 electric vehicles in Q2 2023, beating estimates and setting a new record for the company.
• Twitter has imposed a limit on the number of posts users can read per day to combat data scraping and system manipulation.

Listen below or on the go on Apple Podcasts and Spotify As northeast U.S. air quality suffers from wildfires, some potential stock ideas (FIXT). (00:28) Tesla (TSLA) confirms new record deliveries , beats expectations (01:55). Twitter fixes limit on tweets users can read per day (03:21).

Millions of people across the U.S. and Canada have been under air quality alerts and warnings , as smoke from Canadian wildfires has smothered northeastern U.S. cities such as New York and Washington, D.C., in recent weeks, even reaching Chicago and parts of the Midwest.

As residents struggle to cope with the hazy conditions, demand for air purifiers has been surging , reports say.

Raymond James analyst Olivia Tong recently raised her FY 2024 adjusted earnings and core sales estimates for Helen of Troy (NASDAQ: HELE ), citing demand for Honeywell (NASDAQ: HON ) air purifiers.

Tong said the higher estimates "reflect our expectation for higher sales of Honeywell ( HON ) air purifiers as a result of the Canadian wildfires, partly offset by an expectation for increased promotion due to muted demand in home-related categories."

She added that in previous years, California wildfires led to an estimated $30M sales boost for Helen of Troy ( HELE ).

One ETF to bring to your attention, the Procure Disaster Recovery Strategy ETF ( FIXT ) whose holdings include companies involved in wildfire response, prevention and recovery.

Examples include specialist vehicle manufacturer REV Group ( REVG ), fire truck maker Oshkosh ( OSK ), infrastructure consulting firm AECOM ( ACM ) and risk analytics technology provider Verisk Analytics ( VRSK ).

Tesla (NASDAQ: TSLA ) said Sunday it delivered 466,140 electric vehicles in the second quarter of 2023, easily beating estimates of around 445,000 units. The company produced 479,700 vehicles in the same period.

The delivery and production numbers are record results for the EV maker. In the first quarter of 2023, Tesla delivered 422,875 and produced 440,808 units.

The second quarter numbers represent an 83% increase in deliveries compared to the 254,695 reported during the same period a year earlier.

This is also 10% growth in deliveries sequentially compared to the 422,875 the company reported in the first quarter of 2023.

Tesla will post its financial results for the second quarter of 2023 after market close on Wednesday, July 19, 2023.

NIO’s (NYSE: NIO ) Q2 delivery of 23,520 units came in around the lower end of the guidance announced . The company delivered 10,707 vehicles in June 2023, bringing total deliveries in Q2 to 23,520 vehicles. June's delivery is up 74% M/M and down 17.4% Y/Y.

Twitter ( TWTR ) users will now only be able to read a limited number of posts per day.

Elon Musk made the announcement saying this is a way to address “extreme levels of data scraping & system manipulation.”

Verified accounts are limited to reading 10K posts/day, unverified accounts 1K post/day and new unverified accounts to 500/day. To get to these numbers, he increased them twice within hours.

Other headlines to look out for on Seeking Alpha:

General Motors acquires battery software startup Algolion for early battery defect detection

UBS aims to skip $10B backstop from Swiss govt for Credit Suisse deal - report

Gilead, Teva acquitted in pay for delay generic HIV drugs case

Apple slashes Vision Pro targets amid production woes- report

Macau casino revenue in June misses estimates and dips sequentially

On our catalyst watch for the day, BorgWarner ( BWA ) is expected to complete the spin-off of PHINIA. The stock will be traded on the New York Stock Exchange under the ticker symbol PHIN on July 5. PHINIA will consist of the former Fuel Systems and Aftermarket segments of BorgWarner.

Wall Street's major averages on Friday closed out a strong first half of the year on a positive note..

The Nasdaq ( COMP.IND ) surged 1.45%. The S&P 500 ( SP500 ) added 1.23% while the Dow ( DJI ) advanced 0.84%.

On a weekly basis, the Dow was up 2%, the Nasdaq was up 2.2% and the S&P was up 2.3%.

All 11 S&P sectors ended in the green. Tech rose nearly 2%. Consumer Discretionary rounded out the top two.

Positive sentiment on Friday was also buoyed by data that showed the core personal consumption expenditures price index - the Federal Reserve's favorite inflation gauge - moderated in May on both a M/M and Y/Y basis.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are mixed. The Dow is down 0.15%, the S&P 500 is up 0.06% and the Nasdaq is up 0.3%. Crude oil is up 0.8% at more than $71 a barrel. Bitcoin is up 0.3%.

In the world markets, the FTSE 100 is up 0.3% and the DAX is up 0.1%.

On today’s economic calendar, at 10am construction spending. The May Construction Spending release is forecast to show a 0.4% month-over-month rise to moderate from the 1.2% pace for April. And as a reminder U.S stock markets close at 1pm and the bond market at 2pm for the July 4th holiday.

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