Apple And Tesla Gaining Ground Following Their Stock Split

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Commenting on Apple and Tesla’s stock split and today’s trading Gorilla Trades strategist Ken Berman said:

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The major indices started out the week on a mixed note, as the violent protests in Portland and the bleaker COVID numbers have been weighing on investor sentiment this morning. The divergence between the key cyclical sectors and the market-leading tech issues is still apparent, and today, the tech sector has been showing relative strength again. The slowing improvements in the U.S. COVID numbers coupled by the worrisome trends in Europe put pressure on the most lockdown-sensitive issues, as it seems that the travel and tourism industries are in for a rocky autumn.

Apple And Tesla Stock Split This Morning

The number of cases reached 6 million in the U.S., as infections ticked higher in recent days, while crossing 25 million worldwide, with the outbreak in India still being the most severe. Apple (AAPL, +3.5%) and Tesla (TSLA, +7.5%) have both been gaining ground following their stock splits this morning, with the automaker rocketing to a new all-time helping the Nasdaq to a new record as well. Asian and Japanese stocks, in particular, got a boost from the news that Warren Buffet’s Berkshire Hathaway (BRK-A, +0.3%) bought stakes in five of the largest Japanese trading companies, betting on the recovery in the region.

Market Wrap

Dow: 28,373, - 281 or 1.0%

S&P 500: 3,502, - 5 or 0.2%

Nasdaq: 11,721, + 26 or 0.2%

Russell 2000: 1,566 - 12 or 0.2%

Market breadth has been relatively weak in early trading due to the negative COVID-related headlines, with decliners outnumbering advancing issues by a 3-to-1 ratio on the NYSE at midday. Only 10 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 74 stocks hit new 52-week highs. The major indices have been hovering around their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to a mixed and choppy. Besides the utilities, healthcare, and tech sectors, stocks are in the red across the board at midday, which is in line with the trends seen during the lockdowns, suggesting a slight risk-off shift following last week’s rally. Stay tuned!