Tesla is destroying the competition and means massive gains in stocks

October
23 2018

3 min read

Opinions expressed by Contractor the contributors are theirs.

Elon Musk smiles today.

Tesla shares jumped nearly 12.72% as a former short-selling securitiesman, cried his uncle and admitted that Tesla "was destroying the competition". The action recorded by far the biggest gain in the Entrepreneur Index ™ Index. After a volatile day, the index closed down 0.26%.

Citron Research, a party to a securities lawsuit against Tesla regarding Musk's tweets earlier this year on the move to the private sector, issued a note this morning that Tesla's Model 3 was causing "a legitimate disruption to Automotive industry ". Tesla yesterday announced the release of its results Wednesday, earlier than expected. If, as promised by Musk, the company posts for the first time a quarterly profit and achieves its revenue targets, the remaining short on the stock could suffer.

The big day of Tesla took place against a market that, after another big sale in the morning, gave way to an encouraging rally throughout the day. The 10-year Treasury bond yield fell 8 points in the morning when investors placed the cash in a safe place, then increased by five in the afternoon, upon their return to the stock market .

The disappointing earnings of the components of the Dow, Caterpillar and 3M index, drove down the leading indices by more than 2% in advance. Caterpillar has lowered its guidance for the year due to higher costs and rates. The results fueled fears of a slowing global economy and exceptional earnings for US companies.

Casino operator Wynn Resorts recorded the largest decline in the Entrepreneur Index ™, down 5.53% due to fears of a slowdown in the Chinese economy. The PACCAR Inc. truck manufacturer was also slammed, down 5.12%. Cintas Corp. Business Services Company (-2.23%) and pipeline operator Kinder Morgan (-2.29%) also fell. The price of oil fell by 4.4% today, resulting in a 2.4% decline in shares of oil and gas producer Hess Corp.

Capital One Financial was down 1.69% on the day. The bank regulators have fined the company $ 100 million for its weak anti-money laundering controls. Financial results for the third quarter after the market closed were released, exceeding earnings and revenue estimates. The stock, however, was down in trade after market.

The technological values ​​were mixed. Netflix (1.1%), Adobe Systems Inc. (0.28%) and Alphabet Inc. (0.23%) were up. Twitter (-1.41%), Akamai Technologies (-1.47%) and Facebook (-0.25%) were down. NVIDIA Corp. graphics chip maker recorded the largest decline in the technology sector, with a decrease of 4.39%. Amazon.com, down more than 3% early in the day, closed at 1.15%.

House builder D.R. Horton has apparently been sufficiently beaten for the moment. Down nearly 10% in the last two days, the stock has risen 2.03% today. Other actions that have been in the doldrums lately have also posted gains. Bed Bath & Beyond, down 38% this year, rose 1.88%. Similarly, Ford was up 2.14%, but remained down 31% over the year.

Entrepreneur Index ™ brings together the top 60 publicly traded companies created and managed by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business. This index recognizes its importance, regardless of the growth of the company. These inspiring companies can be followed in real time on Entrepreneur.com.