Tesla is about to soar: Wall Street investors cash in

Tesla is about to soar: Wall Street investors cash in

The corona pandemic has not been tamed in the US, but hopes for a vaccine keep investors’ fears in check. After the price rally at the start of the week, investors took the opportunity to take profits. After being promoted to the S&P 500, Tesla stock takes off.

The Dow Jones Industrial has paid tribute to his most recent record hunt. A series of mixed company news and economic data also weighed on the leading US index. After initially more significant losses, it finally fell by 0.6 percent to 29,783 points. Analyst Craig Erlam from broker Oanda saw the reason, in particular, that the number of corona infections is rising significantly worldwide. On Monday, the index exceeded its all-week high, but failed to break the 30,000 point mark. For the broad market S&P 500 it went downhill by 0.5 percent to 3610 points. On the other hand, the technology-heavy one held out Nasdaq 100, which lagged behind the other indices the day before, this time with a minus of 0.3 percent to 11,977 points better.

Investors are torn between fear of the economic consequences of the rampant corona pandemic and the hope that a vaccine will be approved quickly, which will allow the restrictions to be relaxed, said Rick Meckler, partner at asset manager Cherry Lane. In the case of crude oil, the progress made in vaccine development did nothing to change the gloomy short-term demand outlook, wrote analysts at ING Bank. The US variety WTI fell 0.6 percent to 41.08 dollars per barrel (159 liters).

Earnings expectations at 20-year high

Tesla 410,50

Overall, however, the optimism of investors is unbroken, wrote the experts at Bank of America. According to their monthly investor survey, growth and profit expectations are at their highest level in 20 years. “The market assumes that the end of the tunnel is already in sight,” said Herald van der Linde, equity strategist at HSBC Bank. On Monday, the US biotech company Moderna announced that its corona vaccine had shown an effectiveness of almost 95 percent in tests. Last week, the Mainz competitor Biontech and its US partner Pfizer published similar results for their active ingredient.

The stocks of US pharmacy chains Walgreens, CVS, Rite Aid, Cardinal and McKesson were among the biggest losers in the US stock market, which fell by up to 16 percent. Online retailer Amazon announced its entry into the prescription drug business. That brings a breath of fresh air into the market, wrote the analysts of the brokerage house Evercore ISI. “So far, consumers have not warmed to the shipping of prescription drugs because the service is lower.” The shares of Tesla, however, rose 8.5 percent. The electric car pioneer will move into the S&P 500 on December 21. In September, the index provider S&P Dow Jones decided against it.

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Author: Killian Jones
Graduated From Princeton University.He has been at the USTV since 2017.
Function: Chief-Editor
E-mail: admin@ustv.online

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