By Gorilla Trades. Originally published at ValueWalk.
Commenting on Tesla market cap crossing $800 billion and today’s trading, Gorilla Trades strategist Ken Berman said:
Q3 2020 hedge fund letters, conferences and more
Tesla Crosses $800 Billion Market Cap
The major indices are mixed and flat at midday following another very choppy and active session on Wall Street. The overnight session saw new recovery highs across Europe and Asia, despite the new European restrictions and the narrower-than-expected German trade surplus, as the positive bullish Eurozone unemployment rate and German industrial production boosted risk assets. The daily tally of COVID-related fatalities hit a new high in the U.S. again, with the number of new cases also remaining alarmingly high, which put a lid on the rally despite the opening gains of the large-cap benchmarks.
In domestic economic news, non-farm payrolls unexpectedly declined by 140,000, confirming the bearish ADP payrolls number. The unemployment rate edged lower to 6.7% while hourly wages were up by a whopping 0.8% in December, showing similar dynamics to the first lockdown period. Tesla (TSLA, +7.7%) made headlines yet again this morning, as the automaker continued its mind-boggling march to new highs, with its market cap crossing $800 billion for the first time ever, making Elon Musk the world’s wealthiest person.
Market Wrap
Dow: 30,965, – 72 or 0.2%
S&P 500: 3,812 + 8 or 0.2%
Nasdaq: 13,145, + 78 or 0.6%
Russell 2000: 2,099, + 2 or 0.1%
Market breadth has been relatively weak this morning, with decliners outnumbering advancing issues by a 6-to-5 ratio on the NYSE at midday. No stocks hit new 52-week lows on the NYSE and the Nasdaq, while 243 stocks hit new 52-week highs. The major indices have been hovering around their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to a mixed and choppy afternoon. Tesla’s gains lifted the consumer discretionary sector while real estate stocks and the defensive utilities and healthcare sectors have also been showing relative strength following several days of weakness, and the fact that cyclicals have been struggling in early trading points to a slight risk-off shift. Stay tuned!
The post Tesla Reaches New Highs; Crosses $800 Billion Market Cap appeared first on ValueWalk.
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