A Bullish start to the week is underway, fueled by hopes of easing US-China tensions and signals US President Donald Trump will try to track down some coronavirus treatments.
Hopes also build that markets will receive supportive remarks from Federal Reserve Chairman Jerome Powell at the central bank in Jackson Hole, Wyoming, which gathers Thursday.
Set to lead the gains on Monday is the Nasdaq Composite
COMP,
which recorded several records last week and is at the center of a concern for some investors. That is, the stock market rally is driven by just a few big names, such as iPhone maker Apple AAPL,
and electric car manufacturer Tesla TSLA,
Some are worried about gains for the highfliers paint an overly optimistic picture of a market and economy in the grip of a pandemic.
Shares of Elon Musk’s company, in fact, rose $ 2,000 per share last week. That brings us to ourselves call of the day from one of Wall Street’s biggest fans, who says his new best-case scenario for the stock is $ 3,500.
A team of Wedbush analysts led by Dan Ives say “rising demand in China EV [electric vehicle] market for Model 3s and recent price cuts create a ‘perfect storm of demand’ for Tesla.
“We believe the China growth story is worth at least $ 400 a share in a big deal for Tesla, as this EV penetration has increased significantly over the next 12 to 18 months, along with major battery innovations emerging from Giga. 3 come, ”Ives told clients in a note dated Sunday. Giga 3 refers to Gigafactory 3, Tesla’s Shanghai factory.
“With the China growth story, Tesla could now have $ 35 + of revenue until 2025/2026 against our previous estimate of $ 20- $ 25 and thus we now increase our bull case target to $ 3,500 against our previous $ 2,500 around this to reflect dynamics, ”added Ives, who manages a neutral rating on the company.
Tesla’s most recent rally was sparked by the announcement of a 5-to-1 stock split, with shares up 390% year to date. Shares are still 2.8% up for opening.
The brand
Dow YM00,
S&P ES00,
and Nasdaq NQ00,
futures push higher, while European equities SXXP,
extended recent gains. In Asia, markets are also climbing. Oil CL00,
gets profit when two-man hurricanes are heading for the U.S. Gulf Coast, where refineries are close to preparing for the storms.
The map
The buzz
Shares of Tencent 700,
crashed in Asia on a report told by the Trump administration Apple and Google parent Alphabet GOOGL,
they do not block access to the China technology company’s WeChat messaging app outside the US
Trump on Sunday announced emergency authorization to treat COVID-19 patients with a restorative plasma, with reports that he could also track an AstraZeneca AZN quickly,
fax. Meanwhile, a CBS poll finds most Republicans believe the 176,000 deaths caused by COVID-19 are acceptable. Global deaths have hit 800,000, says the latest Johns Hopkins University census. And German scientists have staged a live concert to test the spread of the virus
Tech giant Microsoft MSFT,
says Apple’s rival threat to infiltrate Fortnite maker Epic Games’ developer account could damage the video game industry.
North Korean dictator Kim Jong Un is thought to be in a coma.
Random reads
Most uplifting Disney song ever? “The mere necessity.”
Kellyanne Conway, top adviser to Trump, is stapt del.
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