Shares of Tesla and Alcoa fall after earnings

Shares of Tesla are trading down 3% to $214 from $222 following earnings.

The company reported $21.45 billion in revenue compared to $21.96 billion expected while earnings of $1.05 beat the $1.00 consensus. Tesla had pre-reported soft deliveries so estimates were guided lower.

As for the macro picture, Tesla isn't a strong indicator. It has a captive base of buyers but a rich valuation (although less so than at the start of the year with shares down 50%).

A better bellwether is aluminum giant Alcoa. The company's shares fell 14% to $34.10 from $37.62 as adjusted EBITDA was $210m compared to $255.7m expected. The company lost 33-cents per share compared to a 2.6 cent gain forecast. They also took a large loss on a pension adjustment.

The company lowered guidance for bauxite and alumina shipments while citing high costs for energy and raw materials as drags, citing two refineries in Europe. Both of which have been curtailed.

The company didn't offer any macro commentary.

The final earnings report I'm looking for today will be Steel Dynamics. That sector enjoyed a boom through the pandemic but prices have fallen recently and any comments on demand for steel will be instructive. At the same time, the company has high exposure to drill pipe and could offer some insight into the ability of oil companies to improve capex.

Update: Steel Dynamics shares are up about 1.5% after earnings Earnings A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price Read this Term and commentary from CEO Mark Millett was positive.

“Customer order entry Entry In financial trading, an entry is simply the point at which a trader enters the market by either buying or selling a certain asset. Entries have two attributes, i.e. the price at which the trader entered, and the time at which the trader entered.There are a number of different types of entry in trading. The most common one is the Market Order. A market order is a manual order, which allows the trader to enter the market virtually immediately upon demand, at the current market price. A trader typ In financial trading, an entry is simply the point at which a trader enters the market by either buying or selling a certain asset. Entries have two attributes, i.e. the price at which the trader entered, and the time at which the trader entered.There are a number of different types of entry in trading. The most common one is the Market Order. A market order is a manual order, which allows the trader to enter the market virtually immediately upon demand, at the current market price. A trader typ Read this Term activity continues to be healthy across our businesses, with expectations for seasonally moderated volume for our steel and metals recycling operations in the coming months,” said Millett. “Despite weaker flat rolled steel pricing, our order activity and backlogs remain solid. We believe North American steel consumption will remain steady, and that demand for lower-carbon, U.S. produced steel products coupled with lower imports will support steel pricing. Our steel fabrication operations order backlog also remains historically high based on volume and forward pricing levels. This, in combination with our existing and recently announced expansion initiatives, are firm drivers for our continued growth in the coming years."