Tesla reports today and Jerome Powell's probably going to give us a good little lesson on interest rates tomorrow. Buckle up for what to expect tomorrow, as well as with Tesla earnings later today. But first updates on Israel Right now, the Biden Administration is suggesting that quote. The other team not Israel was responsible for the attack on the hospital in the Gaza Strip wherein Palestine alleges at least 500 individuals died.

Ultimately, no matter who is responsible, the more war goes on, the more terror there is. apparently Israel's IDF just reported that two Palestinians were killed after protests in the West Bank. There is concern that if more of this conflict spreads now to the West Bank and to Northern Israel this conflict expands and then the United States has to get involved as more conflicts grow with Israel and Hezbollah the the same time as Israel is then overwhelmed from multiple different angles. That is one idea a lot of people say no Israel is perfectly capable of Defending all of their borders without American support.

But let's be clear: America is still paying for all of the defensive Weaponry There's also a rumor that Hamas is potentially willing to give up all of their hostages and exchange for an end to the bombardment of the Gaza Strip. Individuals suggest that it is also forces within Palestine that are conducting their own bombardment, so maybe they should stop. For example, the missile battery or rocket battery that potentially contributed to the attack on the Gaza Strip hospital yesterday was seen on video as launching upwards of 8 to 10 different rockets in the direction of the hospital where these Rockets allegedly supposedly eating to vly beyond that hospital. And this is now leading some to say that either one of those Rock rockets misfired and ended up hitting the hospital.

or maybe an air strike or a type of cruise missile or an interceptor missile from Israel tried locking onto this rocket, detonating this rocket midair or at least part of it leaving a fragment to end up hitting the hospital that the hospital wasn't targeted, potentially from either side. and truly it was a mistake. Others say a second Interceptor rocket from Israel potentially locked on to generators heat generat well, you know, electricity generators given the lack of power uh in the region uh and locked on to the hospitals heat generators rather than the Rockets heat generators. And when I say heat generators I want to be kill for the hospital.

That's the purpose of you having electricity, but they also generate a lot of heat. Okay, so maybe an Interceptor rocket locked onto this instead uh and then attacked the hospital accidentally as these Rockets C were intended to cross over the hospital. The bottom line is nobody knows. What we do know with certainty though, is that the Islamic Jihad a group formed in 1981 and Hamas a group formed in 1987.

both quite frankly Splinter cells off of well Islamic brotherhoods in Egypt have a goal of liberating Palestine from the Jewish State they don't like Israel We know that with certainty these groups are Terror groups and they hate Israel That does not make everyone in Palestine evil though. the poor citizens of Palestine are just now caught in between yet another religious land and cultural. War Now here's a post from Israel's IDF the Israeli Defense Force They're suggesting that hey, look here's Drone footage and satellite footage of the area and our bombs are so good that they leave craters. But as you see here, there's a sight of fire with cars being burned and buildings intact and no crater.

If we had done it, there' be a crater. But again, maybe this was an interception. Or who knows. Here's an example: on the right side of craters on the left side, no craters.

This is a way for Israel to say hey, look, this was definitely not us which the Pentagon and the Biden Administration agree with. Again though, bottom line is in war. more innocent people lose their lives. One thing that I do think is very interesting is Donald Trump has been very quiet on social media about well, this Hospital strike and quite Frank L What to do? This is interesting because maybe the answer just isn't that clearcut.

Anybody suggesting they have a definite answer probably has no idea what they're talking about. I Don't know that anybody has a definite answer to ending this, but I just pray that it ends soon. In the meantime, Bank of America's Institute for analysis shows that child care costs are now 32% higher than in 2019. Apparently, the cost to raise an infant in America is now about $ 39.2 th000 per year to raise one infant I Got twins coming this month.

knock on wood. Apparently the cost to raise a child in New York City has now risen to $45.49 per year, making it even harder for individuals to be convinced to have more children, which is something Elon Musk suggests is critical for the future success of America population growth and more babies being born. Tesla earnings are today. We're expecting 73.5 cents of eps with $24 billion of Revenue.

It's worth noting that Tesla has only beat on Revenue five out of the eight last times and only 50% of the time on EPS Margins here are expected to come in at 18% I Think this is going to be what everybody pays attention to: margins and free cash flow. We're knocking on the door last time of basically no free cash flow? Are we going to be well, at least relative to Prior quarters. Free cash flow plummeted a lot? Maybe I Shouldn't say no, but free cash flow substantially declined. The question is will free cash flow go negative this quarter and will margins be worse or better? Most of the Tesla investors I Talk to say you know what.

I'm not here for the next quarters. I'm here for the next years, if not even the next decade. so it really doesn't matter what happens today, I'll be covering it live. So either way we'll get to react together.

We're expecting 18% margin that compares to 18.2% in the prior quarter and 19.3% before that. Seven out of eight bets here are on net income are usually positive and turn out positive. So Tesla does usually beat on net income. but when it comes to the stock, well, I took a look at what Gary Black had to say about stock performance and Tesla stock only Rises Seven out of 16 times after earnings.

In other words, less than half of the time. That doesn't surprise me. Usually it seems to be we get deliveries and there's at least some excitement. And then you get the bad news.

With earnings, it's kind of like you get the good news up front and then earnings are always the bad news. anyway. drum Powell speaks tomorrow at 9:00 A.m. in New York Morgan Stanley is reporting that at this point everything is pointing to a rebound and the surge in the 10-year might actually end up dampening the need for the Federal Reserve to conduct two hikes.

In other words, the dramatic surge we've seen is the equivalent dramatic surge in yield is essentially the equivalent of 50 basis points worth of hikes from the Federal. Reserve The 10 gear right now is sitting at 4.86 That's a high that is not only local high. over the last year. two years, 3 years, 5 years, 10 years, it's a local high going all the way back to the mid 2000s.

So I like to think about these as local highs though and it just keeps going up. Okay, like 4.8 was the high. Now it's 4.86 It just keeps going at the same time. Oil Brent just broke $90 Again, broke through that resistance at least today.

now sitting at 1.28% up on the day. The concern is will it go to $100 per barrel If you look at gold, bets of pain are ramping up gold now at 1966. The big question is, will it break 2,000 It's up another 1.6% today. Some suggest that as Uh treasury yields remain higher during this Uh end of 2023 and the beginning of 2024, we could ultimately end up seeing bets actually rise that the Federal Reserve increases their rate Cuts sooner.

Although bets made on the Federal Reserve cutting rates anytime soon have almost always been wrong, and right now based on at least what the markets are pricing in, we're still looking at being at least at 4.8% by December of 2024. That really only gives us about half a percent of rate cut. So while some people are like hey, maybe we'll have higher for shorter thanks to these higher treasury yields, others are like, yeah, don't bet on it now. back when Uh Ukraine was invaded by Russia drum Powell called it a quote unquote Game Changer You kind of expect him to think the same thing now, except back then people thought that game changer might be.

oh, maybe we won't raise heke rates anymore. Instead, it turned into Hm. This could cause inflation. Let's raise rates even more so we'll see what Dr Paul says tomorrow about the Israel Invasion That's actually going to be the big piece of the puzzle that a lot of us are curious about.

We know that Jerome Powell and the Federal Reserve are trying to be data dependent, which is really just a fancy way of saying. we have no freaking idea. Like some dat is good, some dat is bad. You know we look at B What Bank of America is saying about consumer spending.

We look at what other companies were saying about consumer spending. We look at what Bank of America analysts are saying about uh, consumer spending. Here's for example, an example or a research piece here: Bank of America consumer spend Collective Still no slowdown and some specific examples CEO of Bank of America and their earnings call suggested earnings growth. or or I should say consumer spending growth was somewhere around 8% at the beginning of 20123 year-over-year falling to about 4% recently year-over-year still growth.

And if you go into the granular of some of these month-over-month numbers, specifically looking at debit card numbers, you're still seeing positive numbers at least on the month-over-month basis as well as the year-over-year basis. So there's this idea that maybe the consumer is just somehow able to keep spending despite the fact that oh no, their excess savings may eventually evaporate. But then again, always remember how much did we have in excess savings before the pandemic? Zero housing starts missed this morning, but building permits meet so beat. Rather so.

A little bit of a plus or minus here. One thing I Am am noticing on the ground as we're looking for properties with house. Haack and we're increasing the wedges that we're looking for right now to insulate House Haack Investors more. Uh, but one of the things that we're finding is that more and more flippers are starting to get what appears to be reamed.

We're seeing massive price cuts from flippers who got in with short-term financing and in over their heads and now they're trying to dump before the winter. Well, that's why we think November December will be glorious. Anything that doesn't get snatched up, we'll be uh, ripe for picking in the winter of 2023. Anyway, learn more about my Uh House Hack.

Uh, Real Estate Startup House Act.com You can read the offering circular We are accepting Investments as low as $5,000 from non-accredited investors at Househ Hack.com You can invest with a debit card, credit card a whatever is easier for you. it's all available at House Hack.com Thank you so very much for watching this Bottom line report. We'll see you in the next one. Goodbye Can not advertise these things that you told us here.

I Feel like nobody else knows about this? We'll We'll try a little advertising and see how it goes. Congratulations man you have done so much. People love you people look up to you Kevin PA there financial analyst and YouTuber meet Kevin Always great to get your take.