The S&P 500 and Nasdaq indices decline after rising at the beginning of the week; Nvidia declines as technology stocks decline

Tesla shares decline after Chinese sales numbers

23 minutes ago

Tesla ( TSLA ) October vehicle sales in China fell to a three-year low, around 26,000, multiple news services reported overnight, citing the China Passenger Vehicle Association. Reports indicated a decline in market share in China, despite a rise in shipments of Tesla vehicles made in China to other markets.

This is weighing on Tesla shares, which recently fell more than 2%. Investor attention has been largely elsewhere recently: Stocks jumped yesterday along with U.S. stocks, buoyed by optimism about a possible end to the government shutdown, and fell late last week in part on selling reaction to news of a shareholder vote to approve a big new pay package for CEO Elon Musk.

The vote removed a potential burden – will Musk continue into Tesla’s next phase of growth or not? – It formalized the company’s commitment to a set of goals on which CEO compensation depends. Many of them point to Tesla’s commitment to evolving into a company powered by robots and robotics.

But car sales remain important. For one thing, they still make up the lion’s share of Tesla’s revenue. One goal requires the company to deliver a total of 20 million vehicles; The last 10 million requires active subscriptions to Tesla’s self-driving program, which cannot happen without vehicle sales.

On a quarterly basis, investors are still interested in Tesla’s “traditional” business. Deliveries in the fourth quarter were higher than expected, although the end of US subsidies will likely increase demand for them and other automakers.

–David Marino Natchison

AMD is expected to lay out its AI roadmap today

2 hours and 18 minutes ago

Traders will look for updated financial targets from Advanced Micro Devices as it hosts an investor later today.

AMD (AMD) shares rose more than 4% on Monday ahead of the event, which some analysts suggested could be a positive catalyst for the chipmaker’s stock. The stock, which has more than doubled since the beginning of the year, fell about 1% in recent premarket trading.

Analysts at Bank of America, Citi and Jefferies said they would monitor updated forecasts and financial targets from AMD’s Analyst Day event. CEO Lisa Su is widely expected to provide more details about the company’s AI roadmap. (You can watch the broadcast scheduled for 1 p.m. ET here.)

Analysts said greater appreciation for AMD’s total addressable market, thanks to growing demand for AI, may help boost confidence in the stock, after a strong run this year driven recently by a series of large AI deals, including one with ChatGPT maker OpenAI.

Last week, AMD posted record quarterly results and an upbeat outlook on growing demand for its data center chips, though the stock was little changed after the results amid some concerns about an AI bubble.

Heading into the event, Wall Street analysts are leaning more bullish on the stock, with seven out of 10 labeling it with current ratings compiled by Visible Alpha as a “buy,” compared to three neutral ratings. Their average target around $269 suggests an upside of roughly 10% from Monday’s close.

–Kara Greenberg

Major stock index futures are down slightly

4 hours and 3 minutes ago

Futures contracts tied to the S&P 500 index fell 0.2%.

Nasdaq 100 futures fell 0.4%.

Dow Jones Industrial Average futures rose slightly.