Key Stories from the past week: Tesla Super-Surge & McDonald’s Burger Scare

Key Stories from the past week: Tesla Super-Surge & McDonald’s Burger Scare

Macro
Saxo Be Invested
Saxo

Plenty of stock specific news this week with the likes of Boeing in-and-out of union deals, McDonalds with an E. coli scare, and Tesla results marking the crescendo of the week’s events. In commodities, crude futures stalled with two-sided risk keeping prices rangebound. Meanwhile, yields have seen price action on the back of US election jitters, BoC rate cut, varying economic data and a slew of Fed and ECB speakers. More below on this week’s key stories.

Tesla’s Q3 earnings report was the big positive surprise of the week. The carmaker’s shares surged 22% on Thursday in the biggest single day rally since 2013. Tesla reported surprisingly strong earnings and forecast as much as 30% growth in vehicle sales next year and the company turned a corner with the Cybertruck which generated profit for the first time. Furthermore lower material costs and an expanding energy business also contributed positively. Despite the positive outlook for 2025, we witnessed some profit taking among Saxo Bank clients following the results.
Tesla Soars In Thursday Pre-Market: Here's What's Driving The Surge

Tuesday this week the US center for Disease Control & Prevention (CDC) issued a food safety alert linking an E. coli outbreak to McDonald’s quarter pounders. The statement reported dozens of incidents across 10 states, several of which included hospitalization. Initial reaction saw McDonald’s stock plunge more than 9% in after-hours & opening down about 6% ($315 - $295) on Wednesday as investors seemed to brace for short-term implications. The main fear among investors is that the situation could develop akin to what Chipotle experienced in 2015, where a years-long E. coli battle resulted in hundreds of incidents & a substantial hit to market cap. Saxo saw a 10% increase in number of client positions, remaining primarily long however with slightly more short positions opened this week.
McDonald’s E. Coli Outbreak Raises Key Questions for Investors

Yields in US rose to a 3-month high on the 10-year yield as market continues to increasingly price-in a potential Trump presidency with possible tariffs, reduced taxes as well as repricing of Fed cuts. USD was stronger across the board, which was most visible in against the Japanese Yen ahead of Japanese elections this weekend that can see a disconnect between the Japanese government and BoJ. USDJPY hit a 3-month high of 153.18. Based on the above we see little change in client positioning where clients remain primarily short.
What the "Trump Trade" Means for Your Bond Portfolio - And How to Protect It

Next week all eyes will be on key earnings releases from several Magnificent 7 members and many other big names. Highlights include Google-parent Alphabet (Tue) Microsoft (Wed) Meta (Wed) Amazon (Thu) Apple (Thu).Markets will also be looking for any clues on FED's stance on inflation as data comes in throughout the week. Key data releases include UK Budget (Wed), US Jobless-/continuing claims (Thu), US non-farm payrolls (Fri), US Manufacturing PMI (Fri). It will also mark the final week before the US election, set to be held November 5th 2024. 
Please also note that daylight savings (summer time) ends this Sunday (27th October) for EU & UK, which means clocks will go back 1 hour across these locations. Be mindful of trading hours between different time zones.

Quarterly Outlook

01 /

  • Equity outlook: The high cost of global fragmentation for US portfolios

    Quarterly Outlook

    Equity outlook: The high cost of global fragmentation for US portfolios

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: Commodities rally despite global uncertainty

    Quarterly Outlook

    Commodity Outlook: Commodities rally despite global uncertainty

    Ole Hansen

    Head of Commodity Strategy

  • Upending the global order at blinding speed

    Quarterly Outlook

    Upending the global order at blinding speed

    John J. Hardy

    Global Head of Macro Strategy

    We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ...
  • Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Quarterly Outlook

    Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist

  • China Outlook: The choice between retaliation or de-escalation

    Quarterly Outlook

    China Outlook: The choice between retaliation or de-escalation

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: A bumpy road ahead calls for diversification

    Quarterly Outlook

    Commodity Outlook: A bumpy road ahead calls for diversification

    Ole Hansen

    Head of Commodity Strategy

  • FX outlook: Tariffs drive USD strength, until...?

    Quarterly Outlook

    FX outlook: Tariffs drive USD strength, until...?

    John J. Hardy

    Global Head of Macro Strategy

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

Disclaimer

The Saxo Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-hk/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo or its affiliates.


Hong Kong

Contact Saxo

Select region

Hong Kong S.A.R
Hong Kong S.A.R

Saxo Capital Markets HK Limited (“Saxo”) is a company authorised and regulated by the Securities and Futures Commission of Hong Kong. Saxo holds a Type 1 Regulated Activity (Dealing in Securities); Type 2 Regulated Activity (Dealing in Futures Contract); Type 3 Regulated Activity (Leveraged Foreign Exchange Trading); Type 4 Regulated Activity (Advising on Securities) and Type 9 Regulated Activity (Asset Management) licenses (CE No. AVD061). Registered address: 19th Floor, Shanghai Commercial Bank Tower, 12 Queen’s Road Central, Hong Kong.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products may result in your losses exceeding your initial deposits. Saxo does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo does not take into account an individual’s needs, objectives or financial situation. Please click here to view the relevant risk disclosure statements.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-hk/about-us/awards.

The information or the products and services referred to on this site may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and services offered on this website are not directed at, or intended for distribution to or use by, any person or entity residing in the United States and Japan. Please click here to view our full disclaimer.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc. Android is a trademark of Google Inc.