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Dow Jones futures advanced strongly on Sunday, as did futures on the S & P 500 and Nasdaq, as trade talks between the US and Canada move closer. agreement. It would be good news for General Motors (GM) and Ford engine (F). Tesla shares likely to rebound after SEC You're here (TSLA) and Elon Musk. Musk will step down as president for at least three years, but he can remain a member of the board of directors and remain CEO. Elon Musk and Tesla will each pay a penalty of $ 20 million. Meanwhile, hot recent IPO Stitch Fix (SFIX) reports its results on Monday.
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Dow Jones Futures Today
Reporting strong gains in the early fourth quarter, Dow Jones futures rose 0.45% over their fair value. The futures on the S & P 500 index rose 0.3%. Nasdaq 100 futures were 0.4% higher than fair value. Remember that Dow futures and other day-to-day actions do not necessarily translate into actual transactions at the next regular session.
United States-Canada trade talks
One of the main reasons for Dow's forward growth is the hope for a revised NAFTA deal with Canada. White House officials, confirming various reports, said Sunday that a trade agreement between Canada and the United States to revise Nafta was near. This would alleviate the fears of investors. President Donald Trump has threatened to send a bilateral trade agreement between Mexico and Mexico to Congress. However, a new agreement with Nafta that would exclude Canada would lead to a deterioration in supply chains, particularly in the auto sector.
The continuation of the trade deal with North America, although many experts believe that the revisions are a net negative, should be good news for automakers, including GM and Ford. GM shares reached 16 months last week because of Trump's trade war fears and signs of weakening industry sales. Ford's stock dropped to its lowest level in six years.
SEC's settlement by Tesla should boost Tesla's actions
On Friday, Tesla's stock plummeted to 14% after the SEC sued Elon Musk, accusing him of fraud for his "secure financing" requests last August. The pursuit of the SEC had attempted to prevent Elon Musk from performing the duties of a director or director of a corporation. Wall Street saw the ousting of Elon Musk as devastating for the Tesla stock.
This lawsuit and the fall of Tesla's actions apparently prompted Elon Musk to settle, after apparently rejecting another deal with the SEC earlier in the week.
This could be the best possible scenario for Tesla investors. Tesla receives a modest fine. Musk is still CEO, but he will lose some control. Someone else will be president and the board will need to add two more independent directors. In addition, Musk must hire an "experienced securities lawyer" to review future tweets.
Shares of Tesla are expected to rebound Monday, according to several analysts.
However, the SEC-Tesla settlement and the information leaked by the SEC will contribute to an ongoing investigation by the Justice Department and legal action for shareholders. Anyone who lacked Tesla 's stock and who was covered after Elon Musk' s famous "secure finance" tweet on August 7 has a solid case. The same is true for investors who bought Tesla shares as a result of the privatization effort.
Tesla Model 3 Release Figures
Earlier this week, Tesla is expected to release third quarter production and delivery figures. Tesla model 3 production is expected to reach 50,000-55,000 in the third quarter, with model 3 shipments of 55,000 or more. Electrek reported Friday that the production of Tesla Model 3 had exceeded 51,000.
Meanwhile, Elon Musk admitted to having problems with the customers of the Model 3 sedan, citing "the hell of delivery logistics".
In an email leaked to Tesla staff, Elon Musk said the company was "very close" to profitability. Musk had stated that he was expecting profitability in the third quarter. Sustained profitability and positive cash flow are essential as Tesla's liquidity has declined.
Tesla Stock Chart
It may be the time when everything starts to turn for Tesla and the stock. But investors are much better looking for solidly profitable companies, whose stocks are settling in bullish bases.
Despite all the talk about Tesla's great success since its IPO, most of these gains occurred between April 2013 and early 2014. In fact, Tesla shares closed Friday at 264.22, below their peak. from 265 in February 2014.
Tesla's relative strength, which tracks the stock's performance against the S & P 500 Index, is at its lowest level in 21 months. If the Tesla stock bounces, the RS line can go up. But the stock chart is messy and is heading down.
Stitch Fix Gains
Stitch Fix earnings are due after market close on Monday. Analysts expect earnings per share of 4 cents per quarter for a business turnover of $ 319 million. The online retailer's subscription activity selects and delivers clothes to customers. In November 2017, at $ 15 per share, Stitch Fix action soared this year, ending Friday at 43.82.
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