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.
New York Stock Exchange.
Michael M. Santiago | Michael M. SantiagoGetty Images
What you need to know today
record high
this S&P 500 Index and high-tech Nasdaq Index Closed at record high The meeting was shortened ahead of the July 4 Independence Day holiday. giant tech stocks, Tesla and Nvidia, took the lead in the charge. this Dow Jones Industrial Average Little changed, crushed UnitedHealth. 10-Year Treasury Bond Yield Ministry of Finance fall down As the latest economic data shows the job market is cooling. US oil prices Slightly higher Due to increased demand ahead of festivals.
“More confident”
Federal Reserve officials noted at their June meeting that while inflation was improving, it was not enough to lower interest rates, according to meeting minutes released on Wednesday. “Participants confirm that additional enabling data is required to provide them with greater confidence Minutes of the meeting showed that inflation continues to move towards 2%.
Employment growth slows
Private sector employment growth slowed in JuneBusinesses added 150,000 jobs, compared with 157,000 in May, according to ADP. That was lower than expected, the weakest growth since January and could signal a cooling labor market. “Employment growth is solid, but not broad-based,” he said Nella Richardson, chief economist at ADP. “If hiring in the leisure and hospitality industry does not rebound, June will be a pessimistic month.” The ADP report precedes Friday’s broader Labor Department nonfarm payrolls data, which is expected to show 200,000 new jobs. .
poison pill
Southwest Airlines Through “poison pill” shareholder rights plans Responding to activist investors Shares of Elliott Management Corporation and promote leadership changes. If any investor acquires 12.5% or more of the company, the plan is triggered, allowing other shareholders to purchase discounted shares, effectively diluting the activist’s stake. Elliott, who currently owns about 11% of Southwest, has criticized the airline’s performance compared with rivals and pushed to oust CEO Bob Jordan and Chairman Gary Kelly Kelly).
JPMorgan Chase’s Kolanovich quits
Marko Kolanovic, chief global market strategist and co-head of global research at J.P. Morgan and one of the biggest bears in the bull market leave the company. Kolanovich, known for accurately predicting stock market rallies during the Covid-19 pandemic, has been bearish recently despite the market’s highs. JPMorgan’s year-end forecast for the S&P 500 is 4,200, the lowest among major companies. Officials attributed the call to Dubravko Lakos-Bujas, who will take over as chief market strategist. The S&P 500 is up nearly 17% this year, closing above 5,537 on Wednesday.
(PRO) Tesla Bull Market Case
Wedbush analyst Dan Ives offers his take Tesla The target price was raised from $275 to $300. Bull run to hit $400 by 2025. Previously, Tesla’s second-quarter deliveries were stronger than expected. The new price target suggests a potential upside of 30% from current shares.
bottom line
“Tesla’s AI story could be worth more than $1 trillion, making it the most undervalued AI company in our view,” Wedbush analyst Dan Ives wrote. Increased 12-month price target to $300.
Not all analysts agree. RBC Capital Markets analyst Tom Narayan lowered his price target on Elon Musk’s Tesla to $227, down from Wednesday’s closing price of $247.56 9%, valuing the electric car maker at $785 billion. In the past three trading days, Tesla An increase of more than 24%.
“I doubt many of the investors pushing for this have done as rigorous a calculation as I have,” Narayan told CNBC.
Narayan believes Tesla’s second-quarter deliveries are “over analysis“And stressed that the real opportunity lies in autonomous driving. He emphasized the importance of August 8, when Musk will demonstrate Tesla’s robotaxis, although he warned that the financial return of robotaxis is still far away.
Despite the uncertainty about short-term growth, Narayan sees Tesla’s future: “I do like it,” he said. Narayan considers the release of Full Self-Driving (FSD) version 12 a “breakthrough” and points to Musk’s shift in the company’s strategy towards autonomous driving. He sees Tesla as having the advantage of having the largest fleet and extensive self-driving range despite competition from rivals Intelof moving eyes, General Motorsand letterof Waymo.
“The entire market is worth trillions of dollars. I’m just saying they’re going to get $400 billion from this game-changing market,” Narayan said.
Just like Tesla and Nvidia Powering the S&P and Nasdaq new recordthis Latest Federal Reserve Minutes reiterated that more evidence is needed to conclude that inflation is receding.
Jim Paulsen, author of the Paulsen Perspectives newsletter, said the S&P 500’s journey to a record high was “narrow,” only a few stocks rose because the Fed has been raising interest rates, which is rare during a bull market.
“[The bull market]missed out on a lot of other factors that could come from Fed easing, the most important of which is certainly lower bond yields and lower interest rates,” Paulson told CNBC’s “Squawk Box” Wednesday. “If the Fed ends up declaring inflation victory, which I think they will, and we cut rates, then I think we’re going to see more stimulus in the stock market, which could signal the start of a new bull market that we’ve never seen. Never got it.
—CNBC’s Jeff Cox, Brian Evans, Yun Li, Alex Harring, Hakyung Kim, Spencer Kimball, Leslie Jospehs, Rohan Goswami and Jesse Pound contributed to this report.
About The Author
