Tesla earnings will be a ‘blockbuster blowout’: 10MinuteStockTrader Founder

Christopher Uhl, Founder & Head Trader at "10MinuteStockTrader", joins Yahoo Finance’s Sibile Marcellus and Alexis Christoforous to discuss this week's earnings outlook and a look-ahead to Wednesday’s FOMC meeting.

Video Transcript

ALEXIS CHRISTOFOROUS: It is a busy week for investors. We've got the Federal Reserve policy-setting meeting that kicks off tomorrow. It's a two-day meeting. We've also got a packed economic calendar and no fewer than 150 companies out with earnings, including Tesla and Apple. Here to share his thoughts on all of this is Christopher Uhl. He is founder and head trader at 10-minute Stock Trader.

So, Chris, good to see you again. Let's start with this packed earnings calendar. We've got Tesla after the closing bell today, but what are you most looking forward to seeing?

CHRISTOPHER UHL: You know, Tesla-- you look at it over the last year or so, it jumped 700% in 2020. And while Tesla has been on a much more volatile ride lately, I do think that we are going to start to see what Elon's always wanted, which is affordable cars into the hands of as many people as possible, completely changing the game. And you look at what Tesla's done to the industry, all the automakers are pushing everything they can to just compete with Tesla.

I mean, Tesla, essentially, was the Model T, and now we've got every other carmaker trying to match that going forward. And so I think earnings are going to be a blockbuster blowout, really. That's what everybody's looking for, and the stock looks like it's setting up for it.

SIBILE MARCELLUS: Right. Expectations are just a little bit high. Everyone's expecting a blockbuster blowout, of course, right?

CHRISTOPHER UHL: Yeah, why not?

SIBILE MARCELLUS: People are nipping at Elon Musk's heels. So how much longer can you keep this up and continue to be the industry leader?

CHRISTOPHER UHL: Well, I had a conversation with someone one time and I said-- I may not be as smart as this guy, but I think he knows what he's doing. I mean, he's pretty much the richest man in the world. He's going on "SNL" later this week. He's doing everything he can to pump certain aspects of the cryptocurrency world. But in all reality, I think Tesla has a very strong future. And the earnings are going to speak for that as we come into the earnings announcement later today.

ALEXIS CHRISTOFOROUS: I know, outside of Tesla-- actually, we're going to talk a little bit later on about the fact that Musk is hosting "SNL." There are a lot of critics out there who think he has no business doing that. We're going to talk to Emily McCormick about that a little later on. But in terms of other earnings outside of Tesla, I know that you're looking at Raytheon, which is going to report tomorrow before the open.

Do you hold a position there? And what are you looking for?

CHRISTOPHER UHL: So Raytheon has actually been quite intriguing to me. I had a position coming into earlier today. I'm completely flat in Raytheon now. It had been breaking out of a base and been really strong over the last few days. I typically don't like to trade into earnings.

But this one is setting up really well-- surprisingly well given the nature of the industrial sector has really been performing very strongly lately. And Raytheon, being one of the stocks that I had been very-- I mean, I've been into, obviously, but as of now, like I said, going into earnings, I don't hold anything in earnings. But it definitely looks like something that is intriguing out there for people to be looking at.

SIBILE MARCELLUS: Another stock that investors are going to be paying close attention to this week, of course, is Apple-- because whether that goes well or bad, it moves the market. What are your expectations?

CHRISTOPHER UHL: So Apple's an intriguing story, right? You look at it, they just had their product announcement last week. And you look at an Apple chart, it had a nice run-up of 10% over the last month or so coming into that announcement. And then it traded sideways since then. So to me, that's kind of a hint that says it was a buy the rumor, sell the news type of situation.

So while I'm very bullish into the Tesla earnings, I'm not there with Apple right now. I mean, like I said, it had been up 10% over the last month or so. We stalled out right after these new product announcements. I think investors have already made up their mind-- you know what? Maybe I have enough Apple stock. Maybe it's a little bit overweight. Maybe I'm going to be taking some profits.

ALEXIS CHRISTOFOROUS: I know that you brought along a couple of your stock picks. One of them is Hewlett-Packard. Make the case for this company. It had been a laggard as of late.

CHRISTOPHER UHL: You can just take a look at the chart, and it is really starting to explode. You know, the way that I trade is I like to find things that are moving up, right? Where we talked about Apple had been moving sideways over the last few days, it's not a candidate that I would like to be trading. But now we're looking at Hewlett-Packard, and it's got a lot of strength moving forward right now.

And it's already had its earnings-- or last quarter-- and it doesn't have any earnings issues over the next few weeks. So it absolutely looks like-- there we go, right up on the screen-- it looks like a stock that has a lot of potential moving forward. And it's a relatively affordable priced stock. I mean, this could go on the meme list of something that could be looking to afford around the $16 handle there.

SIBILE MARCELLUS: And, Christopher, how closely are you looking at the FOMC meetings this week? We know that the Fed is OK with letting inflation run hot. They believe that the price hikes were temporary-- that's what they're signaling. What are your expectations?

CHRISTOPHER UHL: So I don't pay a lot of attention to the FOMC. And I know that that's going to ruffle a lot of feathers. Really, whatever I'm doing is I'm looking at the stock setup, like we just talked about in HPE. The FOMC has zero bearing on what the stock price is doing right now. It may react at some point, but that also may not.

So I'm not putting any kind of hedges in place. And if the stock turns around, then I'll be the first one to get out. I'm the weakest hands there is, because I want to see the stock moving up. And if it's not working for me, I'm going to cut my ties as fast as possible.

ALEXIS CHRISTOFOROUS: What do you like outside of stocks right now, if anything at all-- or maybe outside the US market, Christopher?

CHRISTOPHER UHL: So right now, I have been cautiously watching the crypto market. There's a lot of crypto news going on out there with, like, Doge, and Bitcoin, Ethereum hitting new highs in comparison to Bitcoin. And while that's all very interesting, the accessibility of that is not there, right?

You can't just log into basically any broker platform, click buy, and click, sell, and you're in or out. And then you've got some newcomers on the horizon like Safe Moon and I forget the other names. But my concern right now is we may be seeing a very bubbly space in the crypto realm, especially when you look at the price of NFTs.

I mean, this is just screaming tulip bubble type results to me. So while I can't predict the future, this is definitely something I like to watch but not participate in.