What caused the market to drop this morning. What's going on team. It's's rick you with tactful solutions here with a quick little stock market update. I that you learned something new and if you do please consider dropping a thumbs up and subscribing.

If you feel like we earned. It so one of the things that we talked about during our live trading session. Today. I trade live every morning with my learn plan profit group.

And we saw that the nasdaq market was down right off the bat right when the market. Opened it was down 35. To almost four percent right when the market opened it aggressively. Sold off we hit overall lows of like.

56. 57. Almost six percent down on the day. Within the first you know five minutes of the market opening.

Now with that being said. It's like what is causing this selling pressure uh. The nasdaq was down one point seven percent as the overall index and the s p 500. That was down two percent.

But one of the biggest contributors that i saw that was actually bringing down the market were tesla's numbers. So tesla's numbers were the lowest since they uh since last fall when it comes down to their actual production uh of and deliveries of last month. Uh. It's their highest that they've ever had for and that was of june of 2022.

So. Although tesla had one of its highest production numbers and deliveries in one month. It's their overall expectation for the months to come. It's kind of like when a stock reports.

An earnings right the earnings for the previous quarter is one thing. There's an expectation for that but there's also the expectation to continue to do better. And that's where the guidance comes in and the reason that tesla is having these issues is their china location their china plant that um you know really does alleviate a lot of the pressure and the stress from their northern california plant. And that shanghai plant.

Because of the covid restrictions has been pretty much shut down so. Although they did great for the month of june of 2022. They had huge gold for overall 2022 and and continuous growth right if i'm not mistaken. They had seven consecutive quarters.

Where they were beating month over month their production and delivery numbers as of now. Again this is a negative catalyst and this is why we're seeing the market dropped a little bit more than. I would say we expected coming over coming through uh that three day weekend. Um.

When it comes down to consumer sentiment uh now going back to kind of the federal reserve. One of the things that we need to understand is right now the consumer sentiment is very very low meaning that they don't have a lot of trust in the federal reserve to them actually getting to that target of two percent inflation that they're working towards right. Now inflation is still north of eight percent. And this is something that we're going to talk about in tomorrow's fed.

Minutes uh or at least see how the market reacts about it so make sure that again uh you stay tuned to that because we will be live streaming. When jerome powell and the overall federal reserve meet for those fed minutes and again that is at 2 pm. Eastern time just make sure that you give yourself about 30 minutes to an hour of time for that live stream. Because it does take some time and sometimes the market does react sometimes it doesn't and again that is 2 pm eastern time one of the other things that i quickly want to talk about is why is why is the idea of the recession.

Such as uh such a of a concern one of the things that we have to understand is that right now such as the s p 500. Is down 21 since previous all time highs. There's there's a technical technical aspect of what people consider a recession or recession territory or we're entering a bear market. I'm sure you guys have heard of it right it's from previous all time highs.

When we drop below 20 of previous ultimate so right now we're at 21. So although we are below that target and we're in recession territory. According to that technical aspect of being down 20. The thing that i'm really looking forward to is when we break above that 20.

We could see that to be some momentum of us recovering a little bit more than. We previously would have right because i do remember when we broke below that 20 mark. There was so much selling pressure. And it was just because of that milestone being met of that the market is now down or the s p.

500. Is now down over 20 which again just instills more fear into the market with more fear. There's more selling pressure. And this is now the recovery.

This is now where we make what we lost uh on on that day right so it's something that i'm really looking forward to. But i i'm excited to see kind of like how the fed minutes go tomorrow. How the market reacts leading into the next cpi data report. Which of course.

We will be live streaming uh within my youtube channel. One of the last. Things that i do want to talk about is. Um again we quickly chatted about.

Uh the fed minutes tomorrow at 2 pm. And then the last thing was the factory order so during today's live trading session. Uh. We cover the market's reaction to the factory.

Orders um. First. It was a little bit more on the negative side and then we saw some bullish sentiment um so it didn't have too much of an influence i i really think that a lot of the negative influence that we saw in today's market was just the weight that tesla has by it's selling off and how it brings down overall markets. So i'm very excited to follow up i hope that you guys are looking forward to tomorrow's fed minutes make sure that you guys subscribe to the channel make sure you drop a thumbs up and again.

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