Tesla, Apple, and Zoom Showing Weakness As Shares Fall

Tesla, Apple, and Zoom Showing Weakness As Shares Fall
webandi / Pixabay

Commenting on the fall in shares of Tesla, Apple, and Zoom and today’s trading Gorilla Trades strategist Ken Berman said:

Play Quizzes 4

Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q2 2020 hedge fund letters, conferences and more

Tesla, Apple, And Zoom's Shares Fall

The major indices are mixed at midday following a very active morning session, with the Nasdaq and the S&P 500 hitting new all-time highs again and the Dow scoring a new recovery high too. Even though the tech benchmark topped the 12,000 level for the first time ever at the open, it has been lagging the broader market this morning, due to the weakness of yesterday’s stars, Tesla (TSLA, -6.7%), Apple (APPL, -2.7%), and Zoom (ZM, -6.5%). The rising number of new COVID cases in the Midwest continues to keep a lid on the rally, but bulls are still eager to buy every dip, leading to choppy and unusually volatile price action near the all-time highs of the large-cap benchmarks.

[Exclusive] ExodusPoint Is In The Green YTD Led By Rates And EM/ Macro Strategies

Invest ESG Leon CoopermanThe ExodusPoint Partners International Fund returned 0.36% for May, bringing its year-to-date return to 3.31% in a year that's been particularly challenging for most hedge funds, pushing many into the red. Macroeconomic factors continued to weigh on the market, resulting in significant intra-month volatility for May, although risk assets generally ended the month flat. Macro Read More

In economic news, factory orders beat expectations, surging higher by 6.4%, and confirming the speedy recovery in manufacturing but the highly anticipated ADP payrolls number was much worse-than-expected in August. The measure came in at 428,000 versus the consensus estimate of 1.25 million and even though last month’s reading was revised higher, the outlook for Friday's government jobs report got bleaker. We also got another batch of weak European indicators, with German retail sales disappointing the most, but risk assets held on to their gains thanks to the hopes of more monetary and fiscal stimulus.

Market Wrap

Dow: 28,821, + 175 or 0.6%

S&P 500: 3,544, + 18 or 0.5%

Nasdaq: 11,925, - 38 or 0.3%

Russell 2000: 1,579 + 1 or 0.1%

Market breadth has been relatively weak in early trading, with advancing issues only outnumbering decliners by a 5-to-4 ratio on the NYSE at midday. Only 124 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 194 stocks hit new 52-week highs. The major indices have been trading above their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday buying pressure. Yesterday’s trends once again reversed on Wall Street as the key defensive sectors have been showing strength in early trading, while cyclicals lagged have been lagging behind, with the exception of financials and industrials which were buoyed by the bullish factory orders release. Stay tuned!

Updated on

Gorilla Trades is the complete solution for today's modern investor, and has been a trusted resource for thousands of investors, stockbrokers and fund managers for over 20 years. Whether you're interested in learning how to trade stocks, just starting to build your portfolio, or you're an experienced investor looking for powerful stock picks; take your portfolio to new heights with Gorilla Trades!
Previous article A Lesson In Nonviolent Protest
Next article 100 Public Pharma and CMOs took PPP COVID-19 small business loans

No posts to display