As US earnings season rolls on, the main focus today will be on Morgan Stanley (MS) and Tesla (TSLA). Given fairly solid banking sector results so far, expectations are for further positivity from today’s MS data which should help strengthen confidence and solidify expectations for a .25% hike from the Fed next month.

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However, the greater interest is likely to be found in the latest set of earnings data from Tesla. Headed by the most divisive man in Tech, Tesla continues to be a major draw for retail traders and given the volatility we saw around the prior quarter’s earnings release, traders will be looking for similar action today.

Details, Details, Details

On the numbers front, the market is looking for Q1 EPS of $0.84 on revenues of $23.617 billion. If seen, this will mark a decline from the prior quarter’s sales and a dip year-on-year also. However, figures at this level (or above) should keep the stock underpinned for now. Focus will then be on the company’s guidance for the coming quarter and year ahead. In particular, traders will be looking for details on Musk’s surprise announcement yesterday that he is lowering the cost of the model 3 and model Y vehicles in a bid to stoke demand. Finally, investors will be looking for an update on Tesla’s Cybertruck production as well as the further details on the gen 3 platform unveiled at the recent Tesla Investor Day.

Technical Views

Tesla 

For now, Tesla shares remain stuck in range between support at 170.22 and resistance at 207.71. The market is currently trading below the bull channel which has framed the rally off last year’s lows. However, while the 170.22 level holds, the focus is on a further push higher and a breakout above the long-term bear trend line targeting 255.61 next. 

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