The Dow dropped about 470 points by closing bell yesterday, marking its steepest decline since January.
Unless you’ve been sequestered from all media, you’ve seen the headlines. Just this morning, we read…
“Stocks plunge as trade-war worries rattle investors” — Market Insider
“Stocks Extend Global Slide as Trade Worries Simmer” — Bloomberg
“Why the market freaked out when Trump tweeted about trade” — CNBC
As for that last headline, on Monday the president tweeted that the 10% tariffs on some Chinese goods would go up to 25% on Friday. With that, a Chinese delegation said they’d be canceling plans to negotiate with the White House administration.
Since then, it’s been a back-and-forth, will-they-or-won’t-they game that’s caused market turbulence across the board — with the exception of gold and bitcoin.
Your thoughts on the trade war and how things will shake out at the stock market?
Better yet, how do you think trade-war hijinks will affect your portfolio.
Your Rundown for Wednesday, May 8, 2019:
Visionary or Dreamer?
Last week, Tesla was knocking on doors at Wall Street, trying to muster up $2.7 billion in stock and bond offerings. This seemed to placate investors; shares floated upward 8%.
This week, loose cannon Elon Musk was on an investor call when he talked up his vision for Tesla: succeeding in the autonomous driving space. He even put a figure on what Tesla’s market cap would be after cracking the code on self-driving — $500 billion.
Musk… visionary? Maybe. Dreamer? Definitely.
Barclays auto analyst Brian Johnson notes Tesla is shifting from “high-volume, high-profit auto sales … now it’s all in on autonomy.
“Tesla [is] apparently pivoting from auto profits to autonomy profits.”
Meaning investors will be waiting even longer for the automaker to become profitable.
Final thought: even though Tesla’s shares recovered 8% on news of Musk’s fundraising efforts, shares are still down 24% year to date.
Market Rundown for Wed. May 8, 2019
S&P 500 futures are down 3 points to 2,881.16.
Oil is down 12 cents to $61.28 for a barrel of WTI.
Gold’s added $2.30 to its price of $1,287.90 per ounce.
Bitcoin is up $97.05 to $5,917.78.
Have a good day. We’ll talk tomorrow.
For the Rundown,