Buyers Don’t Take Vacation Breaks

Tesla tops expectations, Palladium perks up, and Peloton kicks cash concerns down the road.

NEWS
Buyers Don’t Take Vacation Breaks

While the rest of the market’s participants are out starting their Independence Day holidays earlier, buyers are working overtime…especially in big tech stocks. The large-cap major indexes made a new all-time high, and traders say the path of least resistance remains higher. Let’s see what you missed. 👀

Today's issue covers Tesla topping expectations, Palladium perking up at support, and Peloton kicking its cash concerns down the road. 📰

Here's today's heat map:

9 of 11 sectors closed green. Consumer discretionary (+1.95%) led, & healthcare (-0.37%) lagged. 💚

Fed Chairman Jerome Powell spoke at the European Central Bank (ECB) forum, acknowledging inflation’s downward progress but that there’s still work to be done. While the ECB cuts rates, the U.S. keeps rates elevated because of the economy and labor market’s relative strength vs. the rest of the world. ⏯️

The U.S. Job Openings and Labor Turnover Summary (JOLTS) report showed that job openings unexpectedly rose in May for the first time in three months. Despite the jump, the labor market continues to cool as the 1.22 jobs per unemployed worker sit at 3-year lows. 👨‍💼

The Realclearmarkets/TIPP economic optimism index remained negative for the 35th consecutive month but jumped 9.10% to 44.20. 😐

Novo Nordisk and Eli Lilly shares came under pressure after U.S. President Joe Biden and Senator Bernie Sanders, in a jointly authored opinion piece, called on the companies to reduce prices of their weight-loss and diabetes drugs. 💊

Trump Media and Technology popped and then dropped after the company shared that it raised $105 million through the cash exercise of warrants. This is a double-edged sword because it gives the company much-needed operating cash but dilutes the stock price by increasing the number of shares outstanding. 💸

Paramount Media’s shares popped 9% of news that David Ellison’s Skydance has reached a preliminary deal to acquire the media company’s parent, National Amusements. This would be a resurrection of a previously failed deal. 📺

Electric vehicle manufacturer Polestar fell % after its first-quarter loss widened from $37.70 million to $274.30 million. Its 80% QoQ increase in car deliveries was not enough to offset its negative results and headwinds. 🪫

Other active symbols: $RDDT (+10.39%), $ANVS (+76.09%), $RDZN (+82.10%), $ARDX (-30.25%), $MAXN (-67.22%), and $OPTT (+86.10%). 🔥

Here are the closing prices: 

S&P 500

5,509

+0.62%

Nasdaq

18,029

+0.84%

Russell 2000

2,034

+0.19%

Dow Jones

39,332

+0.41%

COMPANY NEWS
Tesla Tops Estimates & Tests Resistance

Tesla has been the talk of the town for much of the first half of 2024, but not for a good reason. The electric vehicle (EV) maker had lagged behind its big-tech peers, who were seemingly making new highs on a daily basis. 🪫

However, some suggest that the tide has finally turned after its second-quarter production and deliveries report topped expectations.

It produced 410,831 vehicles and delivered 443,956, with that latter number down about 4.80% YoY. Analysts had anticipated just 439,000 deliveries. Also, deliveries outpacing units produced helped quell some fears about the company’s inventory building up unsustainably. 🙂

Still, some analysts remain concerned about the company’s ability to navigate an environment of tepid demand and intense competition, which is creating pricing and margin pressure.

For now, though, the news was enough to keep the stock's recent upward momentum going, as it jumped another 10% today. 👍

On the technical side, analysts say the stock is testing a major resistance level at the downtrend line from its 2021 highs. That has kept a lid on prices for the last few years, so everyone will be watching to see if sellers strike again…or if buyers can blast through. 👀

Despite the improving price action and fundamentals, retail remains skeptical of the company’s ability to manage its many headwinds. Stocktwits sentiment remains near one-year lows in “extremely bearish” territory as investors and traders debate the news.

Time will tell who is right. But for now, the technical picture remains in focus as prices look to top the trendline that’s kept a lid on prices for 3 years. 🔍

P.S. Quick shout out to several of the traders highlighted in our “Chart Art” newsletter pointing out Tesla’s improving technicals at various points over the last two months. If you’re not subscribed yet, click here to get the best of the Stocktwits community straight to your inbox each day. 📬

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