STOCKS
Tesla Price Target Almost Tripled: There is simply no ignoring Tesla Motors Inc. (TSLA, +2.64%)
as the electric car maker seems to be doing everything right. On Thursday,
analysts at Bank of America Merrill Lynch raised their price target on the
Tesla stock from $65 to $180. That’s almost triple their original price target.
Interestingly, until now, the Bank of America Merrill Lynch has been bearish
about the company but now the bank has changed its tune and has stated that
Tesla is in fact an “important catalyst" for the electric car and car
industries. According to the analysts, Tesla shares still remain overvalued and
because of this, the bank has maintained their rating at underperform. On
Thursday, the shares of Tesla surged 2.7 percent to trade at $276.15, marking
the highest price in the last ten months. In the last 3 months, Tesla shares
have increased by 45 percent and this is significant compared to the gains of
the S&P 500 Index (SPX, -0.18%) at only 0.6 percent over the same period.
In other news, Tesla also reported their sales numbers for the 2nd quarter
earlier in the day and the company stated that they had delivered a record
number of Model S cars at a total of 11,507, up 52% from the year-ago period.
The number was well above the company's estimate of 10,000 to 11,000 units.
INDICES
On Thursday, U.S. stocks gave up early gains to end the
trading day lower. This came in response to investor uncertainty regarding the
debt crisis while a soft jobs report out of the U.S. did very little to boost
stocks. Due to the Fourth of July holiday, the jobs report was released one day
earlier and government data showed that for June, the economy added 223,000 new
jobs while weekly jobless claims advanced to 281,000 up 10,000. At the close of
trading, the Dow Jones Industrial Average (DJIA) declined 0.3%, or 51 points,
to 17,706. This blue chip index is on track for a weekly loss. Meanwhile, the
S&P 500 index (SPX) was also down 0.2%, or 5 points, to 2,072 and is set to
post its 2nd straight weekly loss while the Nasdaq Composite index (COMP) also
dropped 0.4%, or 17 points, to 4,994.
In currency trading on Thursday, the U.S. dollar (USD)
traded lower. This came after the release of poor economic reports out of the
U.S. which prompted expectations that the Federal Reserve is unlikely to
increase interest rates at any time soon. According to the Commerce Department
in the US, in the month of May, factory orders declined by 1.0 percent. This
missed expectations for a decline of 0.5 percent. In a separate report, the
Labor Department reported that in June, the economy added 223,000 jobs compared
to May’s number which was revised from 262,000 to 254,000. Also, the rate of
unemployment declined to 5.3% in June from 5.5 percent in May. Other data
showed that for the week ending on the 27th of June, the number of individuals
filing for initial jobless benefits increased to 281,000, up 10,000, up from
the previous week’s total of 271,000. The EUR/USD traded at 1.1104, up 0.47% to
while the GBP/USD held steady at a 2-and-a-half week low of 1.5615. Also,
against the currencies in Japan, Canada and Switzerland, the greenback traded
down with the USD/JPY down 0.09% to 123.06, the USD/CAD down 0.13% to 1.2573
and with USD/CHF down 0.55% to trade at 0.9432. Also, the U.S. dollar index was
at 96.18, down 0.31%.
On Friday, crude oil prices took a sharp decline in early
Asian trade. This came in response to investor sentiment that there are very
few global demand triggers while volatility is expected in the markets next
week as a result of the Greece debt crisis as well as the referendum which will
take place over the weekend. Greece voters will go to the polls to decide
whether to accept a bailout package from international creditors or not. WTI
crude oil for delivery in August traded at $56.56 a barrel, down 0.66 percent,
on the NYMEX. Meanwhile, on Thursday, Brent crude oil for delivery in August
traded at $62.10 a barrel, up 0.15%, or 0.09 cents, on the Intercontinental
Exchange (ICE) in London.
The Daily Market Review brought to you by Billionaire Forex UK in collaboration with STOCK.
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