Tesla Stock is Surging Again, Lilly Falls on Alzheimer's Results, and the Dow Is Flat
The Dow Jones Industrial Average and other major U.S. stock indexes were near the break-even line.
The main U.S. stock indexes were near the break-even line.
It’s a quieter Monday morning without large mergers or acquisitions on the tape.
The big news of the weekend was Parasite winning Best Picture at the Academy Awards. That qualifies as an upset. Netflix (ticker: NFLX) managed to pick up its first Oscar, too. Marriage Story’s Laura Dern won for Best Supporting Actress.
Hong Kong’s Hang Seng Index fell 0.6% and the U.K.’s FTSE 100 Index was off 0.3%. U.S. stock futures are mixed. Dow Jones Industrial Average futures were down slightly. But S&P 500 and Nasdaq Composite futures each rose by about 0.1%.
Indexes look quiet, but Tesla (TSLA) stock is still on the move.
Tesla shares had an unbelievable week last week. The market capitalization of the electric vehicle pioneer turned over in less than three days. Shares are up almost $43, or 5.7%, in premarket trading.
The reason looks like new speculation. The business magazine Forbes wrote that Google’s parent Alphabet (GOOGL) could have interest in Tesla, suggesting the electric-vehicle maker could be worth $1.5 trillion.
L Brands (LB) stock is up on less apparently far-fetched speculation. The company is reportedly nearing a deal to sell Victoria’s Secret to private- equity players. Its shares are up 7.3% in premarket trading.
FedEx (FDX) stock gained another 1.5%, after rising 4.7% Friday. The company said Friday that its express unit would contract with its ground unit for e-commerce shipping. Investors see the move as a sign the company is becoming more competitive in business-to-consumer last- mile shipping.
And Eli Lilly (LLY) shares were down 4.1% in premarket trading. A drug for treating Alzheimer’s disease failed to meet its expected endpoint in a medical trial.
Analysts’ ratings actions have some other stocks moving as well.
Canada Goose (GOOS) ratings were changed at several brokers Monday. Cowen analyst Oliver Chen downgraded shares from the equivalent of Buy to Hold. He cut his price target from $50 to $29 a share. Goldman Sachs analyst Alexandra Walvis also downgraded shares to the equivalent of Hold from Buy. She cut her price target from $44 to $34. But Baird analyst Jonathan Komp went the other direction. He upgraded shares from the equivalent of Hold to Buy, leaving his price target unchanged at $53 a share.
For now, the bears are winning, Canada Goose stock is down about 2% in premarket trading.
Wells Fargo analyst Christopher Harris upgraded shares of Intercontinental Exchange (ICE) from the equivalent of Hold to Buy saying investors should never “waste a good crisis.” ICE stock is down almost 9% over the past few days after its surprising plan to buy eBay (EBAY). Intercontinental shares are up about 0.7% in premarket trading.
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