Tesla Soars Amidst the Rubble

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The S&P 500 (INDEXSP:.INX) fell for the third straight day as profit-taking set in ahead of the data-heavy back half of the week.

Four of the eight S&P sectors finished in the red today, with notable weakness in consumer discretionary, financials, and materials stocks. The strongest group was utilities, which benefited from a drop in US Treasury yields.

Elsewhere, much of the high-beta stock complex was weak, with notably bad action in biotechs, small caps, and emerging markets.

And paralleling Friday and Monday, we had a morning high before a sell-off, though we did see a modest bounce in the afternoon.

There was no domestic economic data today, but automakers reported their November US sales results. General Motors ( GM ) reported a 14% year-over-year increase in sales and had its best November in six years. Chrysler , Toyota ( TM ), and Ford ( F ) also posted solid sales gains, but auto sector stocks sold off along with the broader markets.

IBM ( IBM ) said that Cyber Monday online sales rose 20.6% year-over-year, with mobile sales up 55.4%.

However, Internet retailer Amazon ( AMZN ) declined in a sell-the-news reaction, as the stock had just rallied 12% off its November low to its $399 all-time high on Monday.

Shares of electric-car maker Tesla Motors (TSLA) rose 16.5% to $144.70 after its Model S sedan was found to be defect-free by the German Federal Motor Transport Authority. The news drove optimism toward the US National Highway Traffic Administration's inquiry into the vehicle. Additionally, Morgan Stanle y (MS) called Tesla its top stock pick within the automotive sector.

Index heavyweight Apple (AAPL) was another winner today, rising 2.7% to $566.32 on an upgrade from investment bank UBS (UBS).

Wednesday's Financial Outlook

Wednesday will be chock-full of economic numbers, starting with the MBA Mortgage Index at 7:00 a.m. EST. That will be followed by the more important November ADP employment report at 8:15 and October Trade Balance at 8:30. From there, we will see November ISM Services numbers and new-home sales for September and October at 10:00, with crude oil inventories at 10:30 and the Fed's December Beige Book topping it all off at 2:00 p.m.

The earnings calendar is comparatively light, but a number of retailers and apparel companies are reporting, including Express (EXPR), G-III Apparel (GIII), and Guess (GES), which could bring some illumination to consumer spending trends as we head into the holiday season.

Twitter: @Minyanville



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: AMZN , F , GM , IBM , TM

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