US Daily News for July 3 Now in Brief Tesla (TSLA) shares rose 10% after the business revealed financial data in response to news that the Fed still needed more proof before determining whether to decrease interest rates. Check out the complete story below!
1. As part of the deal, Apple will have an observer seat on the OpenAI board.
- Apple (AAPL) has been appointed as an OpenAI board of directors observer to boost AI collaboration.
- Phil Schiller, the head of Apple’s App Store, currently holds this position.
- The observer status provides Apple with insight into OpenAI’s decision-making process.
- This agreement brings Apple to a level with Microsoft, a significant proponent of OpenAI.
2. Tesla Share Price Increases 10% Following Better-than-Expected Q2 Delivery Report
- Tesla (TSLA) shares rose 10% after the firm reported second-quarter car production and delivery numbers that exceeded analysts’ forecasts.
- Total deliveries in Q2 2024 were 443,956 automobiles, above analyst predictions of 439,000.
- Total production in Q2 2024: 410,831 cars.
- Deliveries fell 4.8% from a year ago (466,140), but increased 14.8% from the first quarter.
- Tesla’s sales are calculated using delivery data because the firm does not release numbers for individual models or areas.
- Previous sales decreases resulted from temporary manufacturing closures and increased competition from other EV producers, particularly in China.
- Tesla is giving a variety of incentives to boost sales.
3. The FDA approves Eli Lilly’s Alzheimer’s drug, expanding treatment options in the US.
- The FDA has authorized Eli Lilly’s (LLY) Alzheimer’s medicine donanemab.
- The medication is intended to treat Alzheimer’s disease in its early stages
- Donanemab effectively slows the course of the illness.
- Unfortunately, Donanemab carries severe adverse effects
- It is not a permanent solution and is costly.
4. Rivian rejects automobile production plans with Volkswagen.
- Rivian (RIVN) disputed media claims that it is in early negotiations with Volkswagen about expanding their collaboration beyond software.
- Initial plans to manufacture Rivian R2 vehicles at its Illinois and Georgia factories remain intact.
- VW’s $5 billion investment focuses on sharing electric car technology and software rather than co-production.
5. Walmart Sells Closed Clinics to Potential Buyers.
- Walmart (WMT) wants to sell its shuttered health clinics.
- Health insurers are among the potential purchasers.
- The transaction intends to recoup the investment made.
- However, no official agreement has yet been made.
6. US Job Market is Still ‘Firing’
- The number of job opportunities in the United States surprisingly climbed in May, reflecting the labor market’s sustained strength.
- Job opportunities increased to 8.14 million in May, up from a downwardly revised 7.91 million in April (source: US Bureau of Labor Statistics).
- The ratio of job vacancies to job searchers declined to 1.22 positions per job seeker, matching the rate from February 2020 (before the pandemic).
- Manufacturing (especially durable products) and government had the greatest growth in job openings.
- Meanwhile, real estate, leisure, and hospitality vacancies fell the most dramatically.
For the eighth consecutive month, the resignation rate remained stable at 2.2%.
7. US Inflation Slows Again; Fed Says No Time to Lower Interest Rates
- Following an increase early this year, inflation in the United States is dropping once again.
- However, the Fed needs more information before choosing to lower interest rates.
- Federal Reserve Chairman Jerome Powell believes that reducing interest rates too quickly might lead inflation to rise again.
- On the other hand, waiting too long to decrease interest rates may result in a recession.
- The most recent figures show constant inflation with small price increases from April to May.
- The US economy and job market remain strong, allowing the Fed to take its time lowering interest rates
- Fed policymakers hold differing opinions on inflation and interest rate policy.
- Just so you know, the ECB has slashed interest rates while inflation in the Eurozone has fallen dramatically.