Dow Jones Futures Fall: JPMorgan Earnings, UnitedHealth Top; Tesla Slashes U.S.,

Dow Jones futures fell solidly early Friday, along with S&P 500 futures and Nasdaq futures. Tesla slashed prices in the U.S. and Europe, following big cuts in China and key Asia markets last week, sending TSLA stock and other automakers tumbling. JPMorgan, Bank of America, Delta Air Lines and UnitedHealth earnings topped views before the open. But those stocks were generally lower.

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The stock market rally gained some more ground on Thursday, though the S&P 500 hit resistance at a critical area.

The much-anticipated CPI inflation report showed cooling price pressures largely in line with expectations, though service price gains were a mixed picture. Still, the slowing inflation trend should continue for several months, raising hopes that the Federal Reserve will soon end rate hikes.

Investors should be looking to add exposure, carefully. This market is prone to pullbacks, and could be due for one. Meanwhile, many leading stocks are now extended from at least early buy points. Exxon Mobil (XOM) and Celsius Holdings (CELH) are still actionable.

XOM stock and Celsius are on the IBD 50. CELH stock is on SwingTrader and on the IBD Leaderboard watchlist.

Tesla Price Cuts

Tesla cut prices sharply in the U.S., making more of its models eligible for tax credits of up to $7,500. U.S. Model 3 prices have been reduced 6%-14%, depending on the trim. The base Model Range Standard Range RWD was cut $3,000 to $43,990, which means it would be $36,240 after the IRA tax credits. The Performance version was cut $9,000 to $53,990, getting under the $55,000 limit for tax credits. The base Model Y has been slashed $13,000, or nearly 20%, to $52,990. The Performance variant has been cut to $56,990, also down $13,000.

Meanwhile, Tesla cut Model 3 and Y prices in at least Austria, France, Germany, the Netherlands, Norway, Switzerland and the U.K.

The price cuts should significantly boost sales in the U.S. and provide a boost in Europe, where backlogs had been falling significantly. But they also raise concerns about Tesla’s prized profit margins.

On Jan. 6, Tesla cut China prices significantly for the second time in less than three months, as inventories swelled despite big year-end incentives and temporary Shanghai plant production halt.

Tesla stock fell 6% in premarket trading. General Motors (GM), Ford (F), Rivian (RIVN) and Lucid (LCID) declined 3%-4%, as Tesla price cuts may undercut their demand and pricing for EVs and other vehicles.

Key Earnings

UnitedHealth (UNH) earnings topped fourth-quarter views early Friday. UNH stock retreated slightly early Friday. Shares have sold off in 2023 along with other health insurers, though it rose Thursday.

Delta Air Lines (DAL) topped Q4 estimates as well and reiterated recent bullish guidance on 2023. But shares fell solidly before the open. DAL stock has spiked in 2023 with the airline group, adding to gains Thursday on bullish preliminary revenue from American Airlines (AAL). Delta is well extended from early entries and is working up the right side of a long, deep base.

JPMorgan Chase (JPM) and Bank of America (BAC) topped fourth-quarter views, while Wells Fargo (WFC) and Citigroup (C) had mixed results.

JPM stock and BofA fell modestly, while Wells Fargo and Citi stock also declined. JPMorgan stock closed Thursday in a buy zone after a traditional breakout. Bank of America and Citigroup stock were near early entries in bottoming bases. WFC stock has more work to do.

Dow Jones Futures Today

Dow Jones futures fell 0.7% vs. fair value. JPM stock and UnitedHealth are both Dow Jones components. S&P 500 futures declined 0.9%. Nasdaq 100 futures tumbled 1%. Tesla stock is weighing on S&P 500 and Nasdaq futures, while all the banks and DAL stock are hitting the S&P 500.

The 10-year Treasury yield rose 3 basis points to 3.48%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

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Stock Market Rally

The stock market rally wavered Thursday, with volatile premarket swings continuing into the morning. But as the session wore on, the major indexes calmed down and moved higher before fading somewhat in the day.

The Dow Jones Industrial Average advanced 0.6% in Thursday’s stock market trading. The S&P 500 index climbed 0.3%. The Nasdaq composite rose 0.6%. The small-cap Russell 2000 jumped 1.7%.

U.S. crude oil prices rose 1.3% to $78.39 a barrel, climbing 7.6% over the past six sessions.

Copper climbed 0.8% on Thursday, surging 11.9% over the past six trading days.

The 10-year Treasury yield tumbled 11 basis points to 3.45%, near recent lows. The two-year Treasury yield, more closely tied to Fed policy, hit a three-month low. Markets have almost fully priced in a quarter-point rate hike on Feb. 1, which would be a step down from 50 basis points and 75 basis points in the prior two meetings….