Proactive Investors -
- FTSE 100 flat at 7,953
- Commodities stocks lead risers on China data
- Manufacturing and mortgage data impresses
Rivian car sales offer surprise guidance beat
Rivian (LON:0ACRa), the electric vehicle maker, has provided a well-needed positive surprise for the industry after it delivered more vehicles than it was expecting in the first quarter of 2024.
Some 13,980 EVs were made during the first quarter, against market estimates of 13,817, while its number of customers came in at 13,588, beating Wall Street's predictions of 11,893.
It follows a tough start to 2024 for the EV maker after it was forced to slash its workforce due to a decline in demand across the industry.
Fellow EV makers such as Tesla, Fisker and Canoo have all experienced the negative effects of the downturn in demand, with the latter's shares sinking around 30% after it warned revenues would be lower than initially forecast.
Wall Street to open lower
US stocks are scheduled to open lower on Tuesday, continuing on from Monday's losses after bond yields lifted higher and the odds weakened for a June interest rate cut.
The Dow Jones is expected to open around 278 points lower at 39,937, while the S&P 500 and Nasdaq are down 29 and 109 points respectively.
Much of the changes regarding interest rate cuts and bond yields came after the US released inflation data at 2.8%, still near December and January's 2.9% and a way off the Fed's target of 2%.
On Monday, manufacturing data showed the industry had switched to expansion after sixteen consecutive months of contraction.
David Morrison at Trade Nation added: "Much of the first quarter’s gains were built on excitement over the future of generative AI. So there are concerns that this could be a bubble that’s about to pop.
"But there’s evidence that investors are broadening their horizons, and seeking out smaller and relatively undervalued companies."
Shein becomes the world's largest apparel retailer
Shein is believed to have overtaken Zara to become the world's largest apparel retailer in 2023, according to GlobalData.
It comes after the Chinese fast fashion group said its profits doubled to US$2 billion in 2023, with gross merchandise value rising from US$30 billion to US$45 billion year-on-year.
Louise Deglise-Favre, apparel analyst at GlobalData, noted how Shein's "phenomenal growth" is even more impressive when considering it doesn't operate in its home market of China.
She said: "The retailer’s strength partially resides in its ability to release thousands of new items daily, ensuring it responds to trends in record time.
"It has also successfully leveraged the power of social media, benefitting from both influencer marketing and organic user-generated content, such as “hauls”, helping it to be top of mind for Gen Z shoppers."
Shein is nearing closer to an IPO and it is expected to be the largest of 2024, however, a location for its stock market debut has yet to be decided.