|Day's Range||496.65 - 496.65|
Tesla investors should probably thank the Federal Reserve for their big gains in 2020.
Dow Jones futures: IBD Leaderboard stocks Apple, Tesla, AMD and Nvidia are driving the stock market rally higher. SolarEdge and Zillow were notable earnings late.
Tesla Inc. netted $2.31 billion in its recent stock offering, the company said in a filing late Wednesday. The company sold 2.65 million shares and the deal's underwriters exercised in full the option to buy another 397,500 shares, Tesla said. Tesla jolted markets last week in announcing the share offering and also a previously undisclosed SEC probe. The offer priced on Friday at $767 a share. Tesla shares ended 6.9% higher on Wednesday thanks in part to a price-target increase by analysts at Piper.
(Bloomberg) -- People are starting to ask if this will be remembered as the month real euphoria broke out in the bull market.It’s showing up in the Nasdaq Composite Index, headed for its best February in 20 years with a hodgepodge of companies doubling in less than seven weeks. At almost 38 times earnings, the gauge’s price-earnings ratio is now effectively twice as high as it was in 2011, data compiled by Bloomberg show.The market’s tenor is uncannily positive. The S&P 500, also within spitting distance of its best February since 2000, has posted back-to-back down days just once all year. The S&P 500 Technology Index has eked out a new high every two days, on average.“It’s unbelievable, the rate at which the market in general and technology stocks in particular are going up,” said Matt Maley, an equity strategist at Miller Tabak & Co. “There is no stopping the sector, at least at this point. Are investors concerned about valuations? Maybe, but that’s not strong enough to stop them from buying.”Signs of investor exuberance, already elevated, are multiplying. Virgin Galactic Holdings Inc. had its second rally of at least 20% in three days, an advance that has drawn comparisons with Tesla Inc. Then there’s Tesla itself, which has rallied 119% in 2020. It’s up almost 15% this week.Elsewhere in the Nasdaq Composite, Bioxcel Therapeutics Inc. and ACM Research Inc. have also at least doubled this year.The standard explanations get trotted out. Improving economic fundamentals, the Federal Reserve, the U.S. market’s defensive status amid a global health scare. U.S. equities are a “safe haven,” Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, wrote in a recent note.Another view: “The most compelling bull case right now is that there is no credible bear case,” UBS Global Wealth Management strategists led by David Lefkowitz said in a note to clients. Stocks continue to look attractive versus low bond yields, they said, and the earnings yield on stocks is “still quite appealing.”As nuts as they are, shares look tame compared with options. Investors bought to open almost 24 million call options last week, a record amount, according to Sundial Capital’s Jason Goepfert. That as selling of calls to close dropped nearly 30% from the level a couple of weeks ago. The difference between the two is a record.Options activity in individual stocks has also been startling. About 630,000 put and call options on Virgin Galactic changed hands on Tuesday, almost twice as much as its previous record on Friday. Total options volume on Tesla reached a record of 1.3 million contracts earlier this month.Technology stocks, which have spearheaded an earnings advance in the S&P 500 for most of the past decade, reported 6.2% earnings growth in the fourth quarter. The group is expected to post a 14% profit expansion in 2020, the second-highest after energy stocks.And if fund managers’ polls are any guide, investors expect the bullish sentiment in U.S. stocks to last. Fund managers polled by Bank of America strategists said they expect further upside for U.S. stocks, with their bullish conviction underscored by bets that 10-year Treasury yields will stay within the 1.4% to 2% range in the first half of the year. Investors’ average cash balance dropped to 4% from 4.2%, the lowest level since March 2013, the bank said.“The mind shift has changed from selling bad news to buying the weakness and that is why with things like coronavirus, the market’s peak-to-trough down 3.5%,” Andrew Slimmon, managing director and senior portfolio manager at Morgan Stanley Investment Management, said by phone. “Investors are buying into the weakness -- it’s a very consistent pattern.”To contact the reporters on this story: Elena Popina in New York at firstname.lastname@example.org;Vildana Hajric in New York at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Chris Nagi, Richard RichtmyerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The S&P 500 and Nasdaq finish at all-time highs Wednesday as investors were encouraged by comments from the Federal Reserve and measures China says it has taken to help coronavirus-stricken businesses.
"Short interest" is one of the most interesting pieces of stock data that you might pay little or no attention to. But this little metric of negative sentiment, while popular among traders, can be valuable even to buy-and-hold investors who never want to place a single bearish bet.If you believe a stock will rise, you buy it. Easy. But what if you're bearish on a company's prospects and want to profit off that belief? A popular technique is short selling: To sell a stock short, you borrow shares so you can immediately turn around and sell them. You wait for shares to fall in price, then buy them back and return those shares to the lender. Your profit is the difference between the price you sold and the price you bought back.But that gamble can go wrong - to the delight of bullish investors. Short sellers incur losses when the stock's price goes higher. Also, time is against you when you short a stock, because you pay interest when you borrow shares. If you want to exit your short trade, you have to buy back shares, which in turn drives the stock price higher. That might force other short sellers to cut their losses, leading to a virtuous cycle of buying called a "short squeeze."That's why short interest (how many shares are currently sold short to bet against a company) matters. There's no concrete level, but anything above 10% of the float, which is the number of shares available for public trading, is worth watching. If you're a conservative, buy-and-hold investor who hates volatility, you might want to avoid stocks with high short interest. If you're an aggressive investor, however, you might consider buying these stocks in the hope that a small bit of positive news will trigger a short squeeze, netting large returns in a short time.Here, we'll look at seven heavily shorted stocks to watch. These companies have short interest ranging anywhere from 14% to 96%, and many of them are the kinds of hot-moving growth stocks that are typical among short-selling targets. SEE ALSO: The 20 Best Stocks to Buy for 2020
(Bloomberg) -- Researchers were able to trick a Tesla Inc. vehicle into speeding by putting a strip of electrical tape over a speed limit sign, spotlighting the kinds of potential vulnerabilities facing automated driving systems.Technicians at McAfee Inc. placed the piece of tape horizontally across the middle of the “3” on a 35 mile-per-hour speed limit sign. The change caused the vehicle to read the limit as 85 miles per hour, and its cruise control system automatically accelerated, according to research released by McAfee on Wednesday.McAfee says the issue isn’t a serious risk to motorists. No one was hurt and the researcher behind the wheel was able to safely slow the car.But the findings, from 18 months of research that ended last year, illustrate a weakness of machine learning systems used in automated driving, according to Steve Povolny, head of advanced threat research at McAfee. Other research has shown how changes in the physical world can confuse such systems.The tests involved a 2016 Model S and Model X that used camera systems supplied by Mobileye Inc., now a unit of Intel Corp. Mobileye systems are used by several automakers though Tesla stopped using them in 2016.Tests on Mobileye’s latest camera system didn’t reveal the same vulnerability, and Tesla’s latest vehicles apparently don’t depend on traffic sign recognition, according to McAfee.Tesla didn’t respond to emails seeking comment on the research.“Manufacturers and vendors are aware of the problem and they’re learning from the problem,” Povolny said. “But it doesn’t change the fact that there are a lot of blind spots in this industry.”To be sure, the real-world threats of such an occurrence today are limited. For one, self-driving cars are still in the development phase, and most are being tested with safety drivers behind the wheel. Vehicles with advanced driver-assist systems that are available now still require the human to be attentive.And the McAfee researchers were only able to trick the system by duplicating a certain sequence involving when a driver-assist function was turned on and encountered the altered speed limit sign. Manufacturers are also integrating mapping technology into systems that reflect the proper speed limit.“It’s quite improbable that we’ll ever see this in the wild or that attackers will try to leverage this until we have truly autonomous vehicles, and by that point we hope that these kinds of flaws are addressed earlier on,” Povolny said.In a statement, Mobileye said human drivers can also be fooled by such a modification and that the system tested by the researchers was designed to assist a human driver and not to support autonomous driving.Robust Redundancies“Autonomous vehicle technology will not rely on sensing alone, but will also be supported by various other technologies and data, such as crowd sourced mapping, to ensure the reliability of the information received from the camera sensor and offer more robust redundancies and safety,” the company said.The McAfee research follows similar academic work in what’s known as adversarial machine learning, a relatively new field that studies how computer-based learning systems can be manipulated. Researchers in 2017 found that placing four black and white stickers in specific locations on a stop sign could “trick” a computer vision system into seeing a 45 mile per hour speed limit sign, for example.The issue isn’t specific to Tesla or Mobileye, but is a broader weakness inherent in the advanced systems powering self-driving cars, said Missy Cummings, a Duke University robotics professor and autonomous vehicle expert, and researchers have shown that potentially serious malfunctions can be caused by changing the physical environment without accessing the system itself.“And that’s why it’s so dangerous, because you don’t have to access the system to hack it, you just have to access the world that we’re in,” she said.Cummings said McAfee’s findings illustrate why autonomous cars should be subjected to a “vision test” to evaluate whether self-driving systems can safely detect and respond to real-world situations created by other vehicles, pedestrians and other road users.Safety advocates have also urged U.S. auto safety regulators and lawmakers to include such an evaluation among other requirements in new automated vehicle legislation being developed in Congress.(Updates with context on automated vehicle legislation in penultimate paragraph)To contact the reporter on this story: Ryan Beene in Washington at email@example.comTo contact the editors responsible for this story: Jon Morgan at firstname.lastname@example.org, John HarneyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Public service announcement: If you’re an investing novice, you are setting yourself up for a painful lesson.
Wall Street's newest cult stock appears to be Richard Branson's Virgin Galactic Holdings Inc , as investors drive shares of the space tourism company to sky-high levels and short sellers dig in their heels. Virgin Galactic jumped 23% during Wednesday's session, adding to a rally that has seen the money-losing company surge over 400% since early December. "I’m calling it Tesla Junior because it's showing all the signs of becoming a cult stock on the long and on the short side," said Ihor Dusaniwsky, a managing director at financial analytics firm S3 Partners.
The Dow Jones Industrial Average rallied 170 points in afternoon trading after the Fed released minutes from the January meeting.
The hydrogen fuel cell market has a serious player emerging in South Korean automaker Hyundai Motor Corp., which is jumping into the hydrogen truck market to compete with Nikola, Toyota and Tesla
Tesla’s (TSLA) stock price has doubled this year. Virgin Galactic’s (SPCE) stock price has nearly tripled in 2020. The world’s most profitable company, Apple (AAPL) withdraws its revenue guidance, and the technology-heavy Nasdaq Composite actually closes higher on the day.
Shares of SolarEdge Technologies Inc. shot up 12.4% toward a record high in active midday trading Wednesday, after Cascend Securities Chief Investment Strategist Eric Ross raised his price target by 17% ahead of the solar power company's fourth-quarter earnings report due out after the close. The stock has run up 28.1% just this year, while the S&P 500 has gained 4.9%. Ross kept his rating at buy but raised his stock price target to $140 from $120. "Storage is gathering real momentum across all makers--starting to become standard," as Tesla Inc.'s home battery Powerwall has made it "sexy," and as solar power storage systems are growing in consumer applications, Ross wrote in a note to clients. And for commercial projects, Ross said his data shows that inverter pricing continued is growth from last year, with pricing reflecting "strong demand combined with nicely balanced supply." SolarEdge is expected to report fourth-quarter earnings of $1.05 a share, up from 27 cents a share ago, according to FactSet, with sales expected to grow 57% to $413.8 million. SolarEdge has missed EPS expectations the past four quarters, but has beaten revenue forecasts for every quarter since it went public in March 2015.
As stocks hit new all-time highs to finish 2019, the professional money managers were busy positioning their portfolios for 2020. What were they buying, and selling, heading into the new year?
Jim Cramer has some thoughts on the markets, Boeing , Tesla , and Nvidia . Jim Cramer penned a Real Money column focusing on why there's too much upside, and not enough downside, which has impacted the selling.
Two McAfee researchers managed to trick a 2016 Tesla into a dangerous burst of acceleration by changing a speed limit reading from 35 m.p.h to 85 m.p.h.
Renaissance Technologies, added more than 3 million shares of Tesla to its holdings in the fourth quarter of last year, as the electric-vehicle maker’s shares catapulted higher, according to public filings.