Close-up of Tesla Motors logo under bright blue sky on July 23, 2018 in Pleasanton, California.
The Smith Collection | Gadot | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
S&P ends losing streak
The US market is Mix Thursday. this S&P 500 Index and Nasdaq Index rise, be pushed Tesla,but Dow Jones Industrial Average fell down. Pan-European Stoke 600 The index edged up 0.03%. UK bank shares barclays bank The company’s shares rose 4.2% and hit a nine-year high during the trading session as third-quarter profit beat expectations.
Tesla shares have best day in 11 years
Tesla shares surged 21.9%, their best day since 2013. That’s welcome, and the forecast is higher than the 15% forecast by analysts polled by FactSet. But analysts Deutsche Bank and Morgan Stanley There are doubts that this lofty goal can be achieved.
Capri is not woven into a tapestry
coach owner tapestry Proposed $8.5 billion acquisition capriMichael Kors boss was blocked by a US federal judge on Thursday. Tapestry shares rose 13.7% after the news broke, while Capri shares plunged 45.1% in after-hours trading. The Federal Trade Commission filed suit in April to block the deal, saying it would harm consumers.
Oppo’s AI ambitions
Chinese smartphone maker Oppo has been working with Google and Microsoft Zhang Billy, OPPO’s president of overseas marketing, sales and services, told reporters last week that artificial intelligence is talked about every week. Oppo is working with two companies to develop the next big artificial intelligence application as it prepares to launch its flagship phone.
(PRO) S&P may retrace 5%
Earlier this week, the S&P 500 fell for three consecutive days for the first time since early September. Although the index pared losses on Thursday, BTIG believes headwinds could cause the S&P to fall 5% to 5,500 in the coming weeks.
bottom line
Markets are largely irrational creatures. They are driven, as John Maynard Keynes put it, by untamable “animal spirits.”
For example, the effect of meridional sunspots on the rising moon could cast a shadow on the S&P and cause it to slide.
Yes, this is a travesty of how markets work. But it illustrates how sometimes there seems to be no concrete chain of cause and effect to their actions.
However, the market did have a point on Thursday.
Tesla’s The company’s shares rose 21.9% as the company’s earnings per share beat Wall Street expectations and Musk predicted higher-than-expected auto sales growth in 2025.
this Standard & Poor’s The index managed to snap out of a three-game losing streak thanks to Tesla’s surge, rising 0.21% to become the top-performing stock on the index. this Nasdaq It rose 0.76%, which was higher than the S&P’s gain due to its heavy weighting in technology companies.
Unlike the other two indexes, Dow Chemical As Tesla was not included in the 30 index components, the stock price fell 0.33%. Dow also weighed down by stocks boeing companysliding after workers extended strike, and International Business Machines Corporationa sharp decline as the company’s revenue fell short of expectations.
Of course, these are oversimplifications. There were other reasons behind yesterday’s market moves. But the fact that we can even draw a line connecting cause and effect, however vague, suggests that investors are paying close attention to earnings and news during a period of uncertainty caused by the U.S. election.
The good news is that after the election, some of the uncertainty will leave the market and be “replaced with some certainty on the path forward,” said Andy Seager, Citi’s global head of wealth. And “what is most likely to happen is a relief rebound.”
The bad news is that markets may again be more strongly influenced by sentiment – as the word “relief” suggests.
—CNBC’s Sarah Min, Pia Singh and Lisa Kailai Han contributed to this report.
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