Where Do Pricy Tesla Shares Go from Here?

As Tesla shares trade does the S&P500 follow? Our Chief Equity Strategist and Economist, John Blank, seems to think so. He’s here with us now.

1. You say Tesla TSLA the company and Tesla’s inflated share price are interwoven. How so?

2. So then to the market Tesla is more than just an automaker and a leader in the EV market?

3. With its large market cap how much of the S&P 500 does it account for?

4. You’ve written that Tesla is the ‘canary in the coal mine’ for the S&P500 index price.What does that mean for stock investors?

5. Has it become a bellwether for the market and the economy?

6. Do investors need to keep a close eye then on Tesla news and its share price in order to gauge where the stock market or economy is headed going forward?

7. There’s been a lot of tech selling in the market. What does that tell you?

8. In addition to what we’ve discussed here, you say central banks globally are also a major market driver. Which are most important?

9. Shifting away from this a bit…Energy is clearly the top sector and stays firmly at Very Attractive in June. In that group you’re looking at Canadian Natural Resources, Ltd. CNQ. Materials and healthcare remain attractive. On your radar there are Albemarle ALB and AMN Healthcare Services AMN respectively.

Our Chief Equity Strategist and Economist, John Blank, on Tesla and the market. With John, I’m Terry Ruffolo.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research